(Mark One) | ||
x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF | |
THE SECURITIES EXCHANGE ACT OF 1934 | ||
For the quarterly period ended March 31, 2012 |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF | |
THE SECURITIES EXCHANGE ACT OF 1934 | ||
For the transition period from to |
Commission file number: 001-14236 | (FelCor Lodging Trust Incorporated) | ||
Commission file number: 333-39595-01 | (FelCor Lodging Limited Partnership) |
Maryland | (FelCor Lodging Trust Incorporated) | 75-2541756 | |||
Delaware | (FelCor Lodging Limited Partnership) | 75-2544994 | |||
(State or Other Jurisdiction of Incorporation or Organization) | (I.R.S. Employer Identification No.) | ||||
545 E. John Carpenter Freeway, Suite 1300, Irving, Texas | 75062 | |||
(Address of Principal Executive Offices) | (Zip Code) |
FelCor Lodging Trust Incorporated | þ | Yes | ¨ | No | ||
FelCor Lodging Limited Partnership | ¨ | Yes | þ | No |
FelCor Lodging Trust Incorporated | þ | Yes | ¨ | No | ||
FelCor Lodging Limited Partnership | þ | Yes | ¨ | No |
FelCor Lodging Trust Incorporated: | ||
Large accelerated filer o | Accelerated filer þ | |
Non-accelerated filer o (Do not check if a smaller reporting company) | Smaller reporting company o |
FelCor Lodging Limited Partnership: | ||
Large accelerated filer o | Accelerated filer ¨ | |
Non-accelerated filer þ (Do not check if a smaller reporting company) | Smaller reporting company o |
FelCor Lodging Trust Incorporated | ¨ | Yes | þ | No | ||
FelCor Lodging Limited Partnership | ¨ | Yes | þ | No |
• | presents our business as a whole (the same way management views and operates the business); |
• | eliminates duplicative disclosure and provides a more streamlined presentation (a substantial portion of our disclosure applies to both FelCor and FelCor LP); and |
• | saves time and cost by preparing combined reports instead of separate reports. |
• | Item 1 - Consolidated Financial Statements. Although we present the financial statements for FelCor and FelCor LP separately, the notes to the financial statements are generally combined, except as follows: |
• | We separately disclose FelCor's earnings (loss) per common share and FelCor LP's earnings (loss) per common unit; and |
• | FelCor LP's subsidiary guarantor information. |
• | Item 2 - Management's Discussion and Analysis of Financial Condition and Results of Operations are combined; |
• | Item 3 - Quantitative and Qualitative Disclosures about Market Risk are combined; |
• | Item 4 - Controls and Procedures and certifications under Sections 302 and 906 of the Sarbanes-Oxley Act are presented separately to establish that the Chief Executive and the Chief Financial Officers of FelCor (on its behalf and as the general partner of FelCor LP) have made the requisite certifications and that both entities are compliant with Rules 13a-15 and 15d-15 under the Securities Exchange Act of 1934 and 18 U.S.C. §1350. |
• | Item 2 - Unregistered Sales of Equity Securities and Use of Proceeds for FelCor and FelCor LP are presented separately. |
Page | |||
PART I − FINANCIAL INFORMATION | |||
Item 1. | Financial Statements | ||
FelCor Lodging Trust Incorporated: | |||
Consolidated Balance Sheets – March 31, 2012 and December 31, 2011 (unaudited) | |||
Consolidated Statements of Operations – For the Three Months Ended March 31, 2012 and 2011 (unaudited) | |||
Consolidated Statements of Comprehensive Loss – For the Three Months Ended March 31, 2012 and 2011 (unaudited) | |||
Consolidated Statements of Changes in Equity – For the Three Months Ended March 31, 2012 and 2011 (unaudited) | |||
Consolidated Statements of Cash Flows – For the Three Months Ended March 31, 2012 and 2011 (unaudited) | |||
FelCor Lodging Limited Partnership: | |||
Consolidated Balance Sheets – March 31, 2012 and December 31, 2011 (unaudited) | |||
Consolidated Statements of Operations – For the Three Months Ended March 31, 2012 and 2011 (unaudited) | |||
Consolidated Statements of Comprehensive Loss – For the Three Months Ended March 31, 2012 and 2011 (unaudited) | |||
Consolidated Statements of Partners' Capital – For the Three Months Ended March 31, 2012 and 2011 (unaudited) | |||
Consolidated Statements of Cash Flows – For the Three Months Ended March 31, 2012 and 2011 (unaudited) | |||
Notes to Consolidated Financial Statements | |||
Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations | ||
General | |||
Results of Operations | |||
Non-GAAP Financial Measures | |||
Pro Rata Share of Rooms Owned | |||
Hotel Portfolio Composition | |||
Hotel Operating Statistics | |||
Hotel Portfolio | |||
Liquidity and Capital Resources | |||
Inflation | |||
Seasonality | |||
Disclosure Regarding Forward-Looking Statements | |||
Item 3. | Quantitative and Qualitative Disclosures about Market Risk | ||
Item 4. | Controls and Procedures | ||
PART II − OTHER INFORMATION | |||
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds | ||
Item 6. | Exhibits | ||
SIGNATURES |
Item 1. | Financial Statements. |
March 31, 2012 | December 31, 2011 | ||||||
Assets | |||||||
Investment in hotels, net of accumulated depreciation of $929,432 and $987,895 at March 31, 2012 and December 31, 2011, respectively | $ | 1,880,472 | $ | 1,953,795 | |||
Hotel development | 124,862 | 120,163 | |||||
Investment in unconsolidated entities | 68,900 | 70,002 | |||||
Hotels held for sale | 82,643 | — | |||||
Cash and cash equivalents | 98,175 | 93,758 | |||||
Restricted cash | 83,354 | 84,240 | |||||
Accounts receivable, net of allowance for doubtful accounts of $396 and $333 at March 31, 2012 and December 31, 2011, respectively | 36,737 | 27,135 | |||||
Deferred expenses, net of accumulated amortization of $13,004 and $13,119 at March 31, 2012 and December 31, 2011, respectively | 28,784 | 29,772 | |||||
Other assets | 23,248 | 24,363 | |||||
Total assets | $ | 2,427,175 | $ | 2,403,228 | |||
Liabilities and Equity | |||||||
Debt, net of discount of $29,559 and $32,069 at March 31, 2012 and December 31, 2011, respectively | $ | 1,625,605 | $ | 1,596,466 | |||
Distributions payable | 76,293 | 76,293 | |||||
Accrued expenses and other liabilities | 173,530 | 140,548 | |||||
Total liabilities | 1,875,428 | 1,813,307 | |||||
Commitments and contingencies | |||||||
Redeemable noncontrolling interests in FelCor LP, 636 units issued and outstanding at March 31, 2012 and December 31, 2011 | 3,061 | 3,026 | |||||
Equity: | |||||||
Preferred stock, $0.01 par value, 20,000 shares authorized: | |||||||
Series A Cumulative Convertible Preferred Stock, 12,880 shares, liquidation value of $322,011, issued and outstanding at March 31, 2012 and December 31, 2011 | 309,362 | 309,362 | |||||
Series C Cumulative Redeemable Preferred Stock, 68 shares, liquidation value of $169,950, issued and outstanding at March 31, 2012 and December 31, 2011 | 169,412 | 169,412 | |||||
Common stock, $0.01 par value, 200,000 shares authorized and 124,218 shares issued and outstanding at March 31, 2012, and 124,281 shares issued and outstanding at December 31, 2011 | 1,242 | 1,243 | |||||
Additional paid-in capital | 2,353,447 | 2,353,251 | |||||
Accumulated other comprehensive income | 26,044 | 25,738 | |||||
Accumulated deficit | (2,335,812 | ) | (2,297,468 | ) | |||
Total FelCor stockholders’ equity | 523,695 | 561,538 | |||||
Noncontrolling interests in other partnerships | 24,991 | 25,357 | |||||
Total equity | 548,686 | 586,895 | |||||
Total liabilities and equity | $ | 2,427,175 | $ | 2,403,228 |
Three Months Ended March 31, | |||||||
2012 | 2011 | ||||||
Revenues: | |||||||
Hotel operating revenue | $ | 221,167 | $ | 207,024 | |||
Other revenue | 275 | 225 | |||||
Total revenues | 221,442 | 207,249 | |||||
Expenses: | |||||||
Hotel departmental expenses | 83,216 | 76,390 | |||||
Other property-related costs | 64,435 | 60,532 | |||||
Management and franchise fees | 10,366 | 9,655 | |||||
Taxes, insurance and lease expense | 22,313 | 19,778 | |||||
Corporate expenses | 8,212 | 9,537 | |||||
Depreciation and amortization | 31,573 | 30,787 | |||||
Other expenses | 963 | 631 | |||||
Total operating expenses | 221,078 | 207,310 | |||||
Operating income (loss) | 364 | (61 | ) | ||||
Interest expense, net | (31,041 | ) | (32,769 | ) | |||
Debt extinguishment | (7 | ) | (245 | ) | |||
Gain on involuntary conversion, net | — | 150 | |||||
Loss before equity in loss from unconsolidated entities | (30,684 | ) | (32,925 | ) | |||
Equity in loss from unconsolidated entities | (224 | ) | (1,583 | ) | |||
Loss from continuing operations | (30,908 | ) | (34,508 | ) | |||
Income from discontinued operations | 2,047 | 2,782 | |||||
Net loss | (28,861 | ) | (31,726 | ) | |||
Net loss (income) attributable to noncontrolling interests in other partnerships | 202 | (58 | ) | ||||
Net loss attributable to redeemable noncontrolling interests in FelCor LP | 196 | 120 | |||||
Net loss attributable to FelCor | (28,463 | ) | (31,664 | ) | |||
Preferred dividends | (9,678 | ) | (9,678 | ) | |||
Net loss attributable to FelCor common stockholders | $ | (38,141 | ) | $ | (41,342 | ) | |
Basic and diluted per common share data: | |||||||
Loss from continuing operations | $ | (0.32 | ) | $ | (0.46 | ) | |
Net loss | $ | (0.31 | ) | $ | (0.43 | ) | |
Basic and diluted weighted average common shares outstanding | 123,665 | 95,350 |
Three Months Ended | |||||||
March 31, | |||||||
2012 | 2011 | ||||||
Net loss | $ | (28,861 | ) | $ | (31,726 | ) | |
Foreign currency translation adjustment | 308 | 1,292 | |||||
Comprehensive loss | (28,553 | ) | (30,434 | ) | |||
Comprehensive loss (income) attributable to noncontrolling interests in other partnerships | 202 | (58 | ) | ||||
Comprehensive loss attributable to redeemable noncontrolling interests in FelCor LP | 194 | 116 | |||||
Comprehensive loss attributable to FelCor | $ | (28,157 | ) | $ | (30,376 | ) |
Preferred Stock | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income | Noncontrolling Interests in Other Partnerships | |||||||||||||||||||||||||||||||||||||
Number of Shares | Amount | Number of Shares | Amount | Accumulated Deficit | Treasury Stock | Comprehensive Loss | Total Equity | ||||||||||||||||||||||||||||||||||
Balance at December 31, 2010 | 12,948 | $ | 478,774 | 101,038 | $ | 1,010 | $ | 2,190,308 | $ | 26,457 | $ | (2,054,625 | ) | $ | (73,341 | ) | $ | 19,795 | $ | 588,378 | |||||||||||||||||||||
Retirement of treasury stock | — | — | (4,156 | ) | (41 | ) | — | — | (73,300 | ) | 73,341 | — | — | ||||||||||||||||||||||||||||
Amortization of stock awards | — | — | — | — | 827 | — | — | — | — | 827 | |||||||||||||||||||||||||||||||
Forfeiture of stock awards | — | — | (10 | ) | — | — | — | (75 | ) | — | — | (75 | ) | ||||||||||||||||||||||||||||
Allocation to redeemable noncontrolling interests | — | — | — | — | 143 | — | — | — | — | 143 | |||||||||||||||||||||||||||||||
Contribution from noncontrolling interests | — | — | — | — | — | — | — | — | 64 | 64 | |||||||||||||||||||||||||||||||
Distribution to noncontrolling interests | — | — | — | — | — | — | — | — | (445 | ) | (445 | ) | |||||||||||||||||||||||||||||
Other | — | — | — | — | — | — | (2 | ) | — | — | (2 | ) | |||||||||||||||||||||||||||||
Preferred dividends: | |||||||||||||||||||||||||||||||||||||||||
$0.4875 per Series A preferred share | — | — | — | — | — | — | (6,279 | ) | — | — | (6,279 | ) | |||||||||||||||||||||||||||||
$0.50 per Series C depositary preferred share | — | — | — | — | — | — | (3,399 | ) | — | — | (3,399 | ) | |||||||||||||||||||||||||||||
Comprehensive loss: | |||||||||||||||||||||||||||||||||||||||||
Foreign exchange translation | — | — | — | — | — | 1,288 | — | — | — | $ | 1,288 | ||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | (31,664 | ) | — | 58 | (31,606 | ) | |||||||||||||||||||||||||||||
Comprehensive loss | $ | (30,318 | ) | (30,318 | ) | ||||||||||||||||||||||||||||||||||||
Balance at March 31, 2011 | 12,948 | $ | 478,774 | 96,872 | $ | 969 | $ | 2,191,278 | $ | 27,745 | $ | (2,169,344 | ) | $ | — | $ | 19,472 | $ | 548,894 | ||||||||||||||||||||||
Balance at December 31, 2011 | 12,948 | $ | 478,774 | 124,281 | $ | 1,243 | $ | 2,353,251 | $ | 25,738 | $ | (2,297,468 | ) | $ | — | $ | 25,357 | $ | 586,895 | ||||||||||||||||||||||
Amortization of stock awards | — | — | — | — | 232 | — | — | — | — | 232 | |||||||||||||||||||||||||||||||
Forfeiture of stock awards | — | — | (63 | ) | (1 | ) | 193 | — | (199 | ) | — | — | (7 | ) | |||||||||||||||||||||||||||
Conversion of operating partnership units into common shares | — | — | — | — | 1 | — | — | — | — | 1 | |||||||||||||||||||||||||||||||
Allocation to redeemable noncontrolling interests | — | — | — | — | (230 | ) | — | — | — | — | (230 | ) | |||||||||||||||||||||||||||||
Contribution from noncontrolling interests | — | — | — | — | — | — | — | — | 291 | 291 | |||||||||||||||||||||||||||||||
Distribution to noncontrolling interests | — | — | — | — | — | — | — | — | (455 | ) | (455 | ) | |||||||||||||||||||||||||||||
Other | — | — | — | — | — | — | (4 | ) | — | — | (4 | ) | |||||||||||||||||||||||||||||
Preferred dividends: | |||||||||||||||||||||||||||||||||||||||||
$0.4875 per Series A preferred share | — | — | — | — | — | — | (6,279 | ) | — | — | (6,279 | ) | |||||||||||||||||||||||||||||
$0.50 per Series C depositary preferred share | — | — | — | — | — | — | (3,399 | ) | — | — | (3,399 | ) | |||||||||||||||||||||||||||||
Comprehensive loss: | |||||||||||||||||||||||||||||||||||||||||
Foreign exchange translation | — | — | — | — | — | 306 | — | — | — | $ | 306 | ||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | (28,463 | ) | — | (202 | ) | (28,665 | ) | ||||||||||||||||||||||||||||
Comprehensive loss | $ | (28,359 | ) | (28,359 | ) | ||||||||||||||||||||||||||||||||||||
Balance at March 31, 2012 | 12,948 | $ | 478,774 | 124,218 | $ | 1,242 | $ | 2,353,447 | $ | 26,044 | $ | (2,335,812 | ) | $ | — | $ | 24,991 | $ | 548,686 |
Three Months Ended March 31, | |||||||
2012 | 2011 | ||||||
Cash flows from operating activities: | |||||||
Net loss | $ | (28,861 | ) | $ | (31,726 | ) | |
Adjustments to reconcile net loss to net cash provided by operating activities: | |||||||
Depreciation and amortization | 32,992 | 35,671 | |||||
Amortization of deferred financing fees and debt discount | 4,487 | 4,715 | |||||
Amortization of unearned officers’ and directors’ compensation | 1,296 | 1,803 | |||||
Equity in loss from unconsolidated entities | 224 | 1,583 | |||||
Distributions of income from unconsolidated entities | 475 | 165 | |||||
Debt extinguishment | 7 | 252 | |||||
Changes in assets and liabilities: | |||||||
Accounts receivable | (9,572 | ) | (9,316 | ) | |||
Restricted cash - operations | — | (458 | ) | ||||
Other assets | 960 | (3,090 | ) | ||||
Accrued expenses and other liabilities | 31,638 | 6,206 | |||||
Net cash flow provided by operating activities | 33,646 | 5,805 | |||||
Cash flows from investing activities: | |||||||
Improvements and additions to hotels | (41,385 | ) | (15,038 | ) | |||
Hotel development | (4,560 | ) | — | ||||
Payment of accrued selling costs | (413 | ) | — | ||||
Additions to condominium project | — | (65 | ) | ||||
Change in restricted cash – investing | 885 | (2,094 | ) | ||||
Insurance proceeds | — | 11 | |||||
Distributions from unconsolidated entities | 403 | 200 | |||||
Net cash flow used in investing activities | (45,070 | ) | (16,986 | ) | |||
Cash flows from financing activities: | |||||||
Proceeds from borrowings | 36,000 | 185,040 | |||||
Repayment of borrowings | (9,372 | ) | (269,318 | ) | |||
Payment of deferred financing fees | (996 | ) | (4,491 | ) | |||
Distributions paid to noncontrolling interests | (455 | ) | (445 | ) | |||
Contributions from noncontrolling interests | 291 | 64 | |||||
Distributions paid to preferred stockholders | (9,678 | ) | (9,678 | ) | |||
Net cash flow provided by (used in) financing activities | 15,790 | (98,828 | ) | ||||
Effect of exchange rate changes on cash | 51 | 77 | |||||
Net change in cash and cash equivalents | 4,417 | (109,932 | ) | ||||
Cash and cash equivalents at beginning of periods | 93,758 | 200,972 | |||||
Cash and cash equivalents at end of periods | $ | 98,175 | $ | 91,040 | |||
Supplemental cash flow information – interest paid, net of capitalized interest | $ | 5,665 | $ | 12,095 |
March 31, | December 31, | ||||||
2012 | 2011 | ||||||
Assets | |||||||
Investment in hotels, net of accumulated depreciation of $929,432 and $987,895 at March 31, 2012 and December 31, 2011, respectively | $ | 1,880,472 | $ | 1,953,795 | |||
Hotel development | 124,862 | 120,163 | |||||
Investment in unconsolidated entities | 68,900 | 70,002 | |||||
Hotels held for sale | 82,643 | — | |||||
Cash and cash equivalents | 98,175 | 93,758 | |||||
Restricted cash | 83,354 | 84,240 | |||||
Accounts receivable, net of allowance for doubtful accounts of $396 and $333 at March 31, 2012 and December 31, 2011, respectively | 36,737 | 27,135 | |||||
Deferred expenses, net of accumulated amortization of $13,004 and $13,119 at March 31, 2012 and December 31, 2011, respectively | 28,784 | 29,772 | |||||
Other assets | 23,248 | 24,363 | |||||
Total assets | $ | 2,427,175 | $ | 2,403,228 | |||
Liabilities and Partners' Capital | |||||||
Debt, net of discount of $29,559 and $32,069 at March 31, 2012 and December 31, 2011, respectively | $ | 1,625,605 | $ | 1,596,466 | |||
Distributions payable | 76,293 | 76,293 | |||||
Accrued expenses and other liabilities | 173,530 | 140,548 | |||||
Total liabilities | 1,875,428 | 1,813,307 | |||||
Commitments and contingencies | |||||||
Redeemable units, 636 units issued and outstanding at March 31, 2012 and December 31, 2011 | 3,061 | 3,026 | |||||
Capital: | |||||||
Preferred units: | |||||||
Series A Cumulative Convertible Preferred Units, 12,880 units issued and outstanding at March 31, 2012 and December 31, 2011 | 309,362 | 309,362 | |||||
Series C Cumulative Redeemable Preferred Units, 68 units issued and outstanding at March 31, 2012 and December 31, 2011 | 169,412 | 169,412 | |||||
Common units, 124,218 and 124,281 units issued and outstanding at March 31, 2012 and December 31, 2011, respectively | 18,765 | 56,916 | |||||
Accumulated other comprehensive income | 26,156 | 25,848 | |||||
Total FelCor LP partners' capital | 523,695 | 561,538 | |||||
Noncontrolling interests | 24,991 | 25,357 | |||||
Total partners' capital | 548,686 | 586,895 | |||||
Total liabilities and partners' capital | $ | 2,427,175 | $ | 2,403,228 |
Three Months Ended | |||||||
March 31, | |||||||
2012 | 2011 | ||||||
Revenues: | |||||||
Hotel operating revenue | $ | 221,167 | $ | 207,024 | |||
Other revenue | 275 | 225 | |||||
Total revenues | 221,442 | 207,249 | |||||
Expenses: | |||||||
Hotel departmental expenses | 83,216 | 76,390 | |||||
Other property-related costs | 64,435 | 60,532 | |||||
Management and franchise fees | 10,366 | 9,655 | |||||
Taxes, insurance and lease expense | 22,313 | 19,778 | |||||
Corporate expenses | 8,212 | 9,537 | |||||
Depreciation and amortization | 31,573 | 30,787 | |||||
Other expenses | 963 | 631 | |||||
Total operating expenses | 221,078 | 207,310 | |||||
Operating income (loss) | 364 | (61 | ) | ||||
Interest expense, net | (31,041 | ) | (32,769 | ) | |||
Debt extinguishment | (7 | ) | (245 | ) | |||
Gain on involuntary conversion, net | — | 150 | |||||
Loss before equity in loss from unconsolidated entities | (30,684 | ) | (32,925 | ) | |||
Equity in loss from unconsolidated entities | (224 | ) | (1,583 | ) | |||
Loss from continuing operations | (30,908 | ) | (34,508 | ) | |||
Income from discontinued operations | 2,047 | 2,782 | |||||
Net loss | (28,861 | ) | (31,726 | ) | |||
Net loss (income) attributable to noncontrolling interests | 202 | (58 | ) | ||||
Net loss attributable to FelCor LP | (28,659 | ) | (31,784 | ) | |||
Preferred distributions | (9,678 | ) | (9,678 | ) | |||
Net loss attributable to FelCor LP common unitholders | $ | (38,337 | ) | $ | (41,462 | ) | |
Basic and diluted per common unit data: | |||||||
Loss from continuing operations | $ | (0.32 | ) | $ | (0.46 | ) | |
Net loss | $ | (0.31 | ) | $ | (0.43 | ) | |
Basic and diluted weighted average common units outstanding | 124,301 | 95,635 |
Three Months Ended | |||||||
March 31, | |||||||
2012 | 2011 | ||||||
Net loss | $ | (28,861 | ) | $ | (31,726 | ) | |
Foreign currency translation adjustment | 308 | 1,292 | |||||
Comprehensive loss | (28,553 | ) | (30,434 | ) | |||
Comprehensive loss (income) attributable to noncontrolling interests | 202 | (58 | ) | ||||
Comprehensive loss attributable to FelCor LP | $ | (28,351 | ) | $ | (30,492 | ) |
Preferred Units | Common Units | Accumulated Other Comprehensive Income | Noncontrolling Interests | Comprehensive Loss | Total Partners’ Capital | |||||||||||||||||||
Balance at December 31, 2010 | $ | 478,774 | $ | 63,235 | $ | 26,574 | $ | 19,795 | $ | 588,378 | ||||||||||||||
FelCor restricted stock compensation | — | 752 | — | — | 752 | |||||||||||||||||||
Contributions | — | — | — | 64 | 64 | |||||||||||||||||||
Distributions | — | (9,678 | ) | — | (445 | ) | (10,123 | ) | ||||||||||||||||
Allocation to redeemable units | — | 259 | — | — | 259 | |||||||||||||||||||
Other | — | (2 | ) | — | — | (2 | ) | |||||||||||||||||
Comprehensive loss: | ||||||||||||||||||||||||
Foreign exchange translation | 1,292 | $ | 1,292 | |||||||||||||||||||||
Net loss | (31,784 | ) | 58 | (31,726 | ) | |||||||||||||||||||
Comprehensive loss | $ | (30,434 | ) | (30,434 | ) | |||||||||||||||||||
Balance at March 31, 2011 | $ | 478,774 | $ | 22,782 | $ | 27,866 | $ | 19,472 | $ | 548,894 | ||||||||||||||
Balance at December 31, 2011 | $ | 478,774 | $ | 56,916 | $ | 25,848 | $ | 25,357 | $ | 586,895 | ||||||||||||||
FelCor restricted stock compensation | — | 225 | — | — | 225 | |||||||||||||||||||
Contributions | — | — | — | 291 | 291 | |||||||||||||||||||
Distributions | — | (9,678 | ) | — | (455 | ) | (10,133 | ) | ||||||||||||||||
Allocation to redeemable units | — | (35 | ) | — | — | (35 | ) | |||||||||||||||||
Other | — | (4 | ) | — | — | (4 | ) | |||||||||||||||||
Comprehensive loss: | ||||||||||||||||||||||||
Foreign exchange translation | 308 | $ | 308 | |||||||||||||||||||||
Net loss | (28,659 | ) | (202 | ) | (28,861 | ) | ||||||||||||||||||
Comprehensive loss | $ | (28,553 | ) | (28,553 | ) | |||||||||||||||||||
Balance at March 31, 2012 | $ | 478,774 | $ | 18,765 | $ | 26,156 | $ | 24,991 | $ | 548,686 |
Three Months Ended March 31, | |||||||
2012 | 2011 | ||||||
Cash flows from operating activities: | |||||||
Net loss | $ | (28,861 | ) | $ | (31,726 | ) | |
Adjustments to reconcile net loss to net cash provided by operating activities: | |||||||
Depreciation and amortization | 32,992 | 35,671 | |||||
Amortization of deferred financing fees and debt discount | 4,487 | 4,715 | |||||
Amortization of unearned officers’ and directors’ compensation | 1,296 | 1,803 | |||||
Equity in loss from unconsolidated entities | 224 | 1,583 | |||||
Distributions of income from unconsolidated entities | 475 | 165 | |||||
Debt extinguishment | 7 | 252 | |||||
Changes in assets and liabilities: | |||||||
Accounts receivable | (9,572 | ) | (9,316 | ) | |||
Restricted cash - operations | — | (458 | ) | ||||
Other assets | 960 | (3,090 | ) | ||||
Accrued expenses and other liabilities | 31,638 | 6,206 | |||||
Net cash flow provided by operating activities | 33,646 | 5,805 | |||||
Cash flows from investing activities: | |||||||
Improvements and additions to hotels | (41,385 | ) | (15,038 | ) | |||
Hotel development | (4,560 | ) | — | ||||
Payment of accrued selling costs | (413 | ) | — | ||||
Additions to condominium project | — | (65 | ) | ||||
Change in restricted cash – investing | 885 | (2,094 | ) | ||||
Insurance proceeds | — | 11 | |||||
Distributions from unconsolidated entities | 403 | 200 | |||||
Net cash flow used in investing activities | (45,070 | ) | (16,986 | ) | |||
Cash flows from financing activities: | |||||||
Proceeds from borrowings | 36,000 | 185,040 | |||||
Repayment of borrowings | (9,372 | ) | (269,318 | ) | |||
Payment of deferred financing fees | (996 | ) | (4,491 | ) | |||
Distributions paid to noncontrolling interests | (455 | ) | (445 | ) | |||
Contributions from noncontrolling interests | 291 | 64 | |||||
Distributions paid to preferred unitholders | (9,678 | ) | (9,678 | ) | |||
Net cash flow provided by (used in) financing activities | 15,790 | (98,828 | ) | ||||
Effect of exchange rate changes on cash | 51 | 77 | |||||
Net change in cash and cash equivalents | 4,417 | (109,932 | ) | ||||
Cash and cash equivalents at beginning of periods | 93,758 | 200,972 | |||||
Cash and cash equivalents at end of periods | $ | 98,175 | $ | 91,040 | |||
Supplemental cash flow information – interest paid, net of capitalized interest | $ | 5,665 | $ | 12,095 |
1. | Organization |
Brand | Hotels | Rooms | ||||||
Embassy Suites Hotels® | 38 | 10,003 | ||||||
Holiday Inn® | 13 | 4,387 | ||||||
Sheraton® and Westin® | 6 | 2,224 | ||||||
Doubletree® and Hilton® | 6 | 1,450 | ||||||
Marriott® and Renaissance® | 3 | 1,321 | ||||||
Fairmont® | 1 | 383 | ||||||
Independent (Morgans/Royalton) | 2 | 282 | ||||||
Total | 69 | 20,050 |
2. | Investment in Unconsolidated Entities |
2. | Investment in Unconsolidated Entities — (continued) |
March 31, | December 31, | ||||||||
2012 | 2011 | ||||||||
Investment in hotels, net of accumulated depreciation | $ | 168,613 | $ | 173,310 | |||||
Total assets | $ | 194,583 | $ | 199,063 | |||||
Debt | $ | 149,892 | $ | 150,388 | |||||
Total liabilities | $ | 153,401 | $ | 156,607 | |||||
Equity | $ | 41,182 | $ | 42,456 |
Three Months Ended March 31, | |||||||||
2012 | 2011 | ||||||||
Total revenues | $ | 10,989 | $ | 11,688 | |||||
Net income (loss) | $ | 481 | $ | (2,235 | ) | ||||
Net income (loss) attributable to FelCor | $ | 241 | $ | (1,118 | ) | ||||
Depreciation of cost in excess of book value | (465 | ) | (465 | ) | |||||
Equity in loss from unconsolidated entities | $ | (224 | ) | $ | (1,583 | ) |
March 31, | December 31, | ||||||||
2012 | 2011 | ||||||||
Hotel-related investments | $ | 12,392 | $ | 12,400 | |||||
Cost in excess of book value of hotel investments | 48,309 | 48,774 | |||||||
Land and condominium investments | 8,199 | 8,828 | |||||||
$ | 68,900 | $ | 70,002 |
Three Months Ended | |||||||
March 31, | |||||||
2012 | 2011 | ||||||
Hotel investments | $ | 405 | $ | (962 | ) | ||
Other investments | (629 | ) | (621 | ) | |||
Equity in loss from unconsolidated entities | $ | (224 | ) | $ | (1,583 | ) |
3. | Debt |
Encumbered Hotels | Interest Rate (%) | Maturity Date | March 31, 2012 | December 31, 2011 | ||||||||||||||
Line of credit(a) | 11 | L + 4.50 | August 2014(b) | $ | 36,000 | $ | — | |||||||||||
Hotel mortgage debt | ||||||||||||||||||
Mortgage debt | 8 | L + 5.10 | (c) | April 2015 | 202,767 | 202,982 | ||||||||||||
Mortgage debt | 9 | L + 2.20 | May 2013(d) | 148,504 | 156,398 | |||||||||||||
Mortgage debt | 7 | 9.02 | April 2014 | 108,473 | 109,044 | |||||||||||||
Mortgage debt | 5 | (e) | 6.66 | June - August 2014 | 66,895 | 67,375 | ||||||||||||
Mortgage debt | 1 | 5.81 | July 2016 | 10,760 | 10,876 | |||||||||||||
Senior notes | ||||||||||||||||||
Senior secured notes | 6 | 6.75 | June 2019 | 525,000 | 525,000 | |||||||||||||
Senior secured notes(f) | 11 | 10.00 | October 2014 | 462,346 | 459,931 | |||||||||||||
Other(g) | — | L + 1.50 | December 2012 | 64,860 | 64,860 | |||||||||||||
Total | 58 | $ | 1,625,605 | $ | 1,596,466 |
(a) | We currently have $189 million available under our $225 million line of credit. |
(b) | The line of credit can be extended for one year (to 2015), subject to satisfying certain conditions. |
(c) | LIBOR (for this loan) is subject to a 3% floor. We purchased an interest rate cap ($212 million notional amount) that caps LIBOR at 5% and expires May 2012. |
(d) | This loan can be extended for six months, subject to satisfying certain conditions. |
(e) | The hotels securing this debt are subject to separate loan agreements and are not cross-collateralized. |
(f) | These notes have $492 million in aggregate principal outstanding ($144 million and $96,000 in aggregate principal amount was redeemed in June 2011 and January 2012, respectively) and were initially sold at a discount that provided an effective yield of 12.875% before transaction costs. |
(g) | This loan is related to our Knickerbocker development project and is fully secured by restricted cash and a mortgage. Because we were able to assume an existing loan when we purchased this hotel, we were not required to pay any local mortgage recording tax. When that loan is transferred to a new lender and made part of our construction loan, we expect to only pay such tax to the extent of the incremental principal amount of the construction loan. |
3. | Debt — (continued) |
4. | Hotel Operating Revenue, Departmental Expenses, and Other Property-Related Costs |
Three Months Ended | |||||||||
March 31, | |||||||||
2012 | 2011 | ||||||||
Room revenue | $ | 173,016 | $ | 160,337 | |||||
Food and beverage revenue | 36,524 | 34,817 | |||||||
Other operating departments | 11,627 | 11,870 | |||||||
Total hotel operating revenue | $ | 221,167 | $ | 207,024 |
4. | Hotel Operating Revenue, Departmental Expenses, and Other Property-Related Costs — (continued) |
Three Months Ended March 31, | |||||||||||||||||
2012 | 2011 | ||||||||||||||||
Amount | % of Total Hotel Operating Revenue | Amount | % of Total Hotel Operating Revenue | ||||||||||||||
Room | $ | 47,733 | 21.6 | % | $ | 43,352 | 20.9 | % | |||||||||
Food and beverage | 29,749 | 13.5 | 27,380 | 13.2 | |||||||||||||
Other operating departments | 5,734 | 2.5 | 5,658 | 2.8 | |||||||||||||
Total hotel departmental expenses | $ | 83,216 | 37.6 | % | $ | 76,390 | 36.9 | % |
Three Months Ended March 31, | |||||||||||||||||
2012 | 2011 | ||||||||||||||||
Amount | % of Total Hotel Operating Revenue | Amount | % of Total Hotel Operating Revenue | ||||||||||||||
Hotel general and administrative expense | $ | 21,361 | 9.7 | % | $ | 20,142 | 9.7 | % | |||||||||
Marketing | 20,627 | 9.3 | 18,482 | 8.9 | |||||||||||||
Repair and maintenance | 12,463 | 5.6 | 11,461 | 5.5 | |||||||||||||
Utilities | 9,984 | 4.5 | 10,447 | 5.1 | |||||||||||||
Total other property-related costs | $ | 64,435 | 29.1 | % | $ | 60,532 | 29.2 | % |
5. | Taxes, Insurance and Lease Expense |
Three Months Ended | |||||||
March 31, | |||||||
2012 | 2011 | ||||||
Hotel lease expense(a) | $ | 9,194 | $ | 8,304 | |||
Land lease expense(b) | 2,386 | 2,199 | |||||
Real estate and other taxes | 8,288 | 6,918 | |||||
Property insurance, general liability insurance and other | 2,445 | 2,357 | |||||
Total taxes, insurance and lease expense | $ | 22,313 | $ | 19,778 |
(a) | Hotel lease expense is recorded by the consolidated operating lessees of 12 hotels owned by unconsolidated entities, and is partially (generally 49%) offset through noncontrolling interests in other partnerships. Our 50% share of the corresponding lease income is recorded through equity in income from unconsolidated entities. Hotel lease expense includes percentage rent of $3.8 million and $2.9 million for the three months ended March 31, 2012 and 2011, respectively. |
(b) | Land lease expense includes percentage rent of $915,000 and $739,000 for the three months ended March 31, 2012 and 2011, respectively. |
6. | Impairment |
7. | Discontinued Operations |
Three Months Ended | |||||||||
March 31, | |||||||||
2012 | 2011 | ||||||||
Hotel operating revenue | $ | 14,362 | $ | 30,322 | |||||
Operating expenses | (11,593 | ) | (26,456 | ) | |||||
Operating income from discontinued operations | 2,769 | 3,866 | |||||||
Interest expense, net | (722 | ) | (1,077 | ) | |||||
Debt extinguishment | — | (7 | ) | ||||||
Income from discontinued operations | $ | 2,047 | $ | 2,782 |
8. | Loss Per Share/Unit |
Three Months Ended | |||||||||
March 31, | |||||||||
2012 | 2011 | ||||||||
Numerator: | |||||||||
Net loss attributable to FelCor | $ | (28,463 | ) | $ | (31,664 | ) | |||
Discontinued operations attributable to FelCor | (2,037 | ) | (2,774 | ) | |||||
Loss from continuing operations attributable to FelCor | (30,500 | ) | (34,438 | ) | |||||
Less: Preferred dividends | (9,678 | ) | (9,678 | ) | |||||
Numerator for continuing operations attributable to FelCor common stockholders | (40,178 | ) | (44,116 | ) | |||||
Discontinued operations attributable to FelCor | 2,037 | 2,774 | |||||||
Numerator for basic and diluted loss attributable to FelCor common stockholders | $ | (38,141 | ) | $ | (41,342 | ) | |||
Denominator: | |||||||||
Denominator for basic and diluted loss per share | 123,665 | 95,350 | |||||||
Basic and diluted loss per share data: | |||||||||
Loss from continuing operations | $ | (0.32 | ) | $ | (0.46 | ) | |||
Discontinued operations | $ | 0.02 | $ | 0.03 | |||||
Net loss | $ | (0.31 | ) | $ | (0.43 | ) |
8. | Loss Per Share/Unit — (continued) |
Three Months Ended | |||||||
March 31, | |||||||
2012 | 2011 | ||||||
Numerator: | |||||||
Net loss attributable to FelCor LP | $ | (28,659 | ) | $ | (31,784 | ) | |
Discontinued operations attributable to FelCor LP | (2,047 | ) | (2,782 | ) | |||
Loss from continuing operations attributable to FelCor LP | (30,706 | ) | (34,566 | ) | |||
Less: Preferred distributions | (9,678 | ) | (9,678 | ) | |||
Numerator for continuing operations attributable to FelCor LP common unitholders | (40,384 | ) | (44,244 | ) | |||
Discontinued operations attributable to FelCor LP | 2,047 | 2,782 | |||||
Numerator for basic and diluted loss attributable to FelCor LP common unitholders | $ | (38,337 | ) | $ | (41,462 | ) | |
Denominator: | |||||||
Denominator for basic and diluted loss per unit | 124,301 | 95,635 | |||||
Basic and diluted loss per unit data: | |||||||
Loss from continuing operations | $ | (0.32 | ) | $ | (0.46 | ) | |
Discontinued operations | $ | 0.02 | $ | 0.03 | |||
Net loss | $ | (0.31 | ) | $ | (0.43 | ) |
Three Months Ended | |||
March 31, | |||
2012 | 2011 | ||
Series A convertible preferred shares/units | 9,985 | 9,985 |
9. | Dividends/Distributions |
10. | Fair Value of Financial Instruments |
11. | Redeemable Noncontrolling Interests in FelCor LP / Redeemable Units |
11. | Redeemable Noncontrolling Interests in FelCor LP / Redeemable Units – (continued) |
Three Months Ended | |||||||||
March 31, | |||||||||
2012 | 2011 | ||||||||
Balance at beginning of period | $ | 3,026 | $ | 2,004 | |||||
Issuance of units | — | — | |||||||
Conversion of units | (1 | ) | — | ||||||
Redemption value allocation | 230 | (143 | ) | ||||||
Comprehensive income (loss): | |||||||||
Foreign exchange translation | 2 | 4 | |||||||
Net loss | (196 | ) | (120 | ) | |||||
Balance at end of period | $ | 3,061 | $ | 1,745 |
12. | FelCor LP's Consolidating Financial Information |
12. | FelCor LP's Consolidating Financial Information – (continued) |
FelCor LP | Subsidiary Guarantors | Non-Guarantor Subsidiaries | Eliminations | Total Consolidated | |||||||||||||||
Net investment in hotels | $ | 72,277 | $ | 797,571 | $ | 1,010,624 | $ | — | $ | 1,880,472 | |||||||||
Hotel development | — | — | 124,862 | — | 124,862 | ||||||||||||||
Equity investment in consolidated entities | 1,452,057 | — | — | (1,452,057 | ) | — | |||||||||||||
Investment in unconsolidated entities | 55,772 | 11,692 | 1,436 | — | 68,900 | ||||||||||||||
Hotels held for sale | — | 14,205 | 68,438 | — | 82,643 | ||||||||||||||
Cash and cash equivalents | 37,278 | 57,751 | 3,146 | — | 98,175 | ||||||||||||||
Restricted cash | — | 9,464 | 73,890 | — | 83,354 | ||||||||||||||
Accounts receivable, net | 456 | 36,237 | 44 | — | 36,737 | ||||||||||||||
Deferred expenses, net | 18,523 | — | 10,261 | — | 28,784 | ||||||||||||||
Other assets | 6,510 | 10,146 | 6,592 | — | 23,248 | ||||||||||||||
Total assets | $ | 1,642,873 | $ | 937,066 | $ | 1,299,293 | $ | (1,452,057 | ) | $ | 2,427,175 | ||||||||
Debt, net | $ | 987,345 | $ | — | $ | 638,260 | $ | — | $ | 1,625,605 | |||||||||
Distributions payable | 76,293 | — | — | — | 76,293 | ||||||||||||||
Accrued expenses and other liabilities | 52,479 | 112,198 | 8,853 | — | 173,530 | ||||||||||||||
Total liabilities | 1,116,117 | 112,198 | 647,113 | — | 1,875,428 | ||||||||||||||
Redeemable units | 3,061 | — | — | — | 3,061 | ||||||||||||||
Preferred units | 478,774 | — | — | — | 478,774 | ||||||||||||||
Common units | 44,921 | 800,579 | 625,322 | (1,452,057 | ) | 18,765 | |||||||||||||
Accumulated other comprehensive income | — | 26,156 | — | — | 26,156 | ||||||||||||||
Total FelCor LP partners’ capital | 523,695 | 826,735 | 625,322 | (1,452,057 | ) | 523,695 | |||||||||||||
Noncontrolling interests | — | (1,867 | ) | 26,858 | — | 24,991 | |||||||||||||
Total partners' capital | 523,695 | 824,868 | 652,180 | (1,452,057 | ) | 548,686 | |||||||||||||
Total liabilities and partners' capital | $ | 1,642,873 | $ | 937,066 | $ | 1,299,293 | $ | (1,452,057 | ) | $ | 2,427,175 |
12. | FelCor LP's Consolidating Financial Information – (continued) |
FelCor LP | Subsidiary Guarantors | Non-Guarantor Subsidiaries | Eliminations | Total Consolidated | |||||||||||||||
Net investment in hotel properties | $ | 67,828 | $ | 805,280 | $ | 1,080,687 | $ | — | $ | 1,953,795 | |||||||||
Hotel development | — | — | 120,163 | — | 120,163 | ||||||||||||||
Equity investment in consolidated entities | 1,478,347 | — | — | (1,478,347 | ) | — | |||||||||||||
Investment in unconsolidated entities | 56,492 | 12,063 | 1,447 | — | 70,002 | ||||||||||||||
Cash and cash equivalents | 23,503 | 67,001 | 3,254 | — | 93,758 | ||||||||||||||
Restricted cash | — | 11,514 | 72,726 | — | 84,240 | ||||||||||||||
Accounts receivable, net | 540 | 26,357 | 238 | — | 27,135 | ||||||||||||||
Deferred expenses, net | 24,101 | — | 5,671 | — | 29,772 | ||||||||||||||
Other assets | 8,507 | 10,817 | 5,039 | — | 24,363 | ||||||||||||||
Total assets | $ | 1,659,318 | $ | 933,032 | $ | 1,289,225 | $ | (1,478,347 | ) | $ | 2,403,228 | ||||||||
Debt, net | $ | 984,931 | $ | — | $ | 611,535 | $ | — | $ | 1,596,466 | |||||||||
Distributions payable | 76,293 | — | — | — | 76,293 | ||||||||||||||
Accrued expenses and other liabilities | 33,530 | 98,127 | 8,891 | — | 140,548 | ||||||||||||||
Total liabilities | 1,094,754 | 98,127 | 620,426 | — | 1,813,307 | ||||||||||||||
Redeemable units | 3,026 | — | — | — | 3,026 | ||||||||||||||
Preferred units | 478,774 | — | — | — | 478,774 | ||||||||||||||
Common units | 82,764 | 810,554 | 641,945 | (1,478,347 | ) | 56,916 | |||||||||||||
Accumulated other comprehensive income | — | 25,848 | — | — | 25,848 | ||||||||||||||
Total FelCor LP partners’ capital | 561,538 | 836,402 | 641,945 | (1,478,347 | ) | 561,538 | |||||||||||||
Noncontrolling interests | — | (1,497 | ) | 26,854 | — | 25,357 | |||||||||||||
Total partners' capital | 561,538 | 834,905 | 668,799 | (1,478,347 | ) | 586,895 | |||||||||||||
Total liabilities and partners' capital | $ | 1,659,318 | $ | 933,032 | $ | 1,289,225 | $ | (1,478,347 | ) | $ | 2,403,228 |
12. | FelCor LP's Consolidating Financial Information – (continued) |
FelCor LP | Subsidiary Guarantors | Non-Guarantor Subsidiaries | Eliminations | Total Consolidated | |||||||||||||||
Revenues: | |||||||||||||||||||
Hotel operating revenue | $ | — | $ | 221,167 | $ | — | $ | — | $ | 221,167 | |||||||||
Percentage lease revenue | 1,248 | — | 43,271 | (44,519 | ) | — | |||||||||||||
Other revenue | 1 | 220 | 54 | — | 275 | ||||||||||||||
Total revenues | 1,249 | 221,387 | 43,325 | (44,519 | ) | 221,442 | |||||||||||||
Expenses: | |||||||||||||||||||
Hotel operating expenses | — | 158,017 | — | — | 158,017 | ||||||||||||||
Taxes, insurance and lease expense | 303 | 60,967 | 5,562 | (44,519 | ) | 22,313 | |||||||||||||
Corporate expenses | 1,844 | 3,410 | 2,958 | — | 8,212 | ||||||||||||||
Depreciation and amortization | 1,131 | 11,753 | 18,689 | — | 31,573 | ||||||||||||||
Other expenses | 418 | 508 | 37 | — | 963 | ||||||||||||||
Total operating expenses | 3,696 | 234,655 | 27,246 | (44,519 | ) | 221,078 | |||||||||||||
Operating income | (2,447 | ) | (13,268 | ) | 16,079 | — | 364 | ||||||||||||
Interest expense, net | (21,099 | ) | (345 | ) | (9,597 | ) | — | (31,041 | ) | ||||||||||
Debt extinguishment | (7 | ) | — | — | — | (7 | ) | ||||||||||||
Loss before equity in loss from unconsolidated entities | (23,553 | ) | (13,613 | ) | 6,482 | — | (30,684 | ) | |||||||||||
Equity in loss from consolidated entities | (5,138 | ) | — | — | 5,138 | — | |||||||||||||
Equity in loss from unconsolidated entities | 32 | (245 | ) | (11 | ) | — | (224 | ) | |||||||||||
Loss from continuing operations | (28,659 | ) | (13,858 | ) | 6,471 | 5,138 | (30,908 | ) | |||||||||||
Income from discontinued operations | — | 23 | 2,024 | — | 2,047 | ||||||||||||||
Net loss | (28,659 | ) | (13,835 | ) | 8,495 | 5,138 | (28,861 | ) | |||||||||||
Loss attributable to noncontrolling interests | — | 265 | (63 | ) | — | 202 | |||||||||||||
Net loss attributable to FelCor LP | (28,659 | ) | (13,570 | ) | 8,432 | 5,138 | (28,659 | ) | |||||||||||
Preferred distributions | (9,678 | ) | — | — | — | (9,678 | ) | ||||||||||||
Net loss attributable to FelCor LP common unitholders | $ | (38,337 | ) | $ | (13,570 | ) | $ | 8,432 | $ | 5,138 | $ | (38,337 | ) |
12. | FelCor LP's Consolidating Financial Information – (continued) |
FelCor LP | Subsidiary Guarantors | Non-Guarantor Subsidiaries | Eliminations | Total Consolidated | |||||||||||||||
Revenues: | |||||||||||||||||||
Hotel operating revenue | $ | — | $ | 207,024 | $ | — | $ | — | $ | 207,024 | |||||||||
Percentage lease revenue | 1,247 | — | 40,476 | (41,723 | ) | — | |||||||||||||
Other revenue | 7 | 188 | 30 | — | 225 | ||||||||||||||
Total revenues | 1,254 | 207,212 | 40,506 | (41,723 | ) | 207,249 | |||||||||||||
Expenses: | |||||||||||||||||||
Hotel operating expenses | — | 146,577 | — | — | 146,577 | ||||||||||||||
Taxes, insurance and lease expense | 279 | 55,845 | 5,377 | (41,723 | ) | 19,778 | |||||||||||||
Corporate expenses | 169 | 5,159 | 4,209 | — | 9,537 | ||||||||||||||
Depreciation and amortization | 1,165 | 11,061 | 18,561 | — | 30,787 | ||||||||||||||
Other expenses | 115 | 483 | 33 | — | 631 | ||||||||||||||
Total operating expenses | 1,728 | 219,125 | 28,180 | (41,723 | ) | 207,310 | |||||||||||||
Operating loss | (474 | ) | (11,913 | ) | 12,326 | — | (61 | ) | |||||||||||
Interest expense, net | (19,843 | ) | (685 | ) | (12,241 | ) | — | (32,769 | ) | ||||||||||
Debt extinguishment | — | — | (245 | ) | — | (245 | ) | ||||||||||||
Gain on involuntary conversion, net | — | 150 | — | — | 150 | ||||||||||||||
Loss before equity in loss from unconsolidated entities | (20,317 | ) | (12,448 | ) | (160 | ) | — | (32,925 | ) | ||||||||||
Equity in income from consolidated entities | (10,530 | ) | — | — | 10,530 | — | |||||||||||||
Equity in loss from unconsolidated entities | (1,153 | ) | (419 | ) | (11 | ) | — | (1,583 | ) | ||||||||||
Loss from continuing operations | (32,000 | ) | (12,867 | ) | (171 | ) | 10,530 | (34,508 | ) | ||||||||||
Income from discontinued operations | 216 | 147 | 2,419 | — | 2,782 | ||||||||||||||
Net loss | (31,784 | ) | (12,720 | ) | 2,248 | 10,530 | (31,726 | ) | |||||||||||
Income attributable to noncontrolling interests | — | 228 | (286 | ) | — | (58 | ) | ||||||||||||
Net loss attributable to FelCor LP | (31,784 | ) | (12,492 | ) | 1,962 | 10,530 | (31,784 | ) | |||||||||||
Preferred distributions | (9,678 | ) | — | — | — | (9,678 | ) | ||||||||||||
Net loss attributable to FelCor LP common unitholders | $ | (41,462 | ) | $ | (12,492 | ) | $ | 1,962 | $ | 10,530 | $ | (41,462 | ) |
12. | FelCor LP's Consolidating Financial Information – (continued) |
FelCor LP | Subsidiary Guarantors | Non-Guarantor Subsidiaries | Eliminations | Total Consolidated | |||||||||||||||
Net loss | $ | (28,659 | ) | $ | (13,835 | ) | $ | 8,495 | $ | 5,138 | $ | (28,861 | ) | ||||||
Foreign currency translation adjustment | — | 308 | — | — | 308 | ||||||||||||||
Comprehensive loss | (28,659 | ) | (13,527 | ) | 8,495 | 5,138 | (28,553 | ) | |||||||||||
Comprehensive loss attributable to noncontrolling interests | — | 265 | (63 | ) | — | 202 | |||||||||||||
Comprehensive loss attributable to FelCor LP | $ | (28,659 | ) | $ | (13,262 | ) | $ | 8,432 | $ | 5,138 | $ | (28,351 | ) |
FelCor LP | Subsidiary Guarantors | Non-Guarantor Subsidiaries | Eliminations | Total Consolidated | |||||||||||||||
Net loss | $ | (31,784 | ) | $ | (12,720 | ) | $ | 2,248 | $ | 10,530 | $ | (31,726 | ) | ||||||
Foreign currency translation adjustment | — | 1,292 | — | — | 1,292 | ||||||||||||||
Comprehensive loss | (31,784 | ) | (11,428 | ) | 2,248 | 10,530 | (30,434 | ) | |||||||||||
Comprehensive income attributable to noncontrolling interests | — | 228 | (286 | ) | — | (58 | ) | ||||||||||||
Comprehensive loss attributable to FelCor LP | $ | (31,784 | ) | $ | (11,200 | ) | $ | 1,962 | $ | 10,530 | $ | (30,492 | ) |
12. | FelCor LP's Consolidating Financial Information – (continued) |
FelCor LP | Subsidiary Guarantors | Non-Guarantor Subsidiaries | Total Consolidated | ||||||||||||
Cash flows from operating activities | $ | 828 | $ | 3,810 | $ | 29,008 | $ | 33,646 | |||||||
Cash flows used in investing activities | (4,669 | ) | (18,538 | ) | (21,863 | ) | (45,070 | ) | |||||||
Cash flows from financing activities | 17,616 | 5,427 | (7,253 | ) | 15,790 | ||||||||||
Effect of exchange rates changes on cash | — | 51 | — | 51 | |||||||||||
Change in cash and cash equivalents | 13,775 | (9,250 | ) | (108 | ) | 4,417 | |||||||||
Cash and cash equivalents at beginning of period | 23,503 | 67,001 | 3,254 | 93,758 | |||||||||||
Cash and equivalents at end of period | $ | 37,278 | $ | 57,751 | $ | 3,146 | $ | 98,175 |
FelCor LP | Subsidiary Guarantors | Non-Guarantor Subsidiaries | Total Consolidated | ||||||||||||
Cash flows from operating activities | $ | (8,926 | ) | $ | (8,180 | ) | $ | 22,911 | $ | 5,805 | |||||
Cash flows used in investing activities | 214 | (5,221 | ) | (11,979 | ) | (16,986 | ) | ||||||||
Cash flows used in financing activities | (100,597 | ) | 13,272 | (11,503 | ) | (98,828 | ) | ||||||||
Effect of exchange rates changes on cash | — | 77 | — | 77 | |||||||||||
Change in cash and cash equivalents | (109,309 | ) | (52 | ) | (571 | ) | (109,932 | ) | |||||||
Cash and cash equivalents at beginning of period | 155,350 | 43,647 | 1,975 | 200,972 | |||||||||||
Cash and equivalents at end of period | $ | 46,041 | $ | 43,595 | $ | 1,404 | $ | 91,040 |
Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations |
• | We agreed to sell six non-strategic hotels for $103 million. The transaction is expected to close late in the second quarter. Proceeds from the sale will be used to repay $69 million of related debt, with the remaining proceeds, after selling costs, used to pay a portion of our accrued preferred dividends (almost half of the $68 million in arrears). |
• | We have 10 hotels on the market (excluding the six we have agreed to sell). We will use the sale proceeds to repay existing debt (approximately $79 million) and pay remaining accrued preferred dividends. |
• | We refinanced $130 million of unconsolidated debt (our pro rata share is $65 million) and extended the maturity until 2014. |
• | Seven of the ten hotels under renovation or redevelopment have been substantially completed. |
• | Total revenue was $221.4 million, a 6.9% increase compared to the same period in 2011. This increase is primarily attributed to a 3.6% increase in same-store RevPAR (1.8% at our core hotels and 8.1% at our non-strategic hotels), reflecting a 3.5% increase in ADR and a 10 basis point increase in occupancy, as well as $6.3 million in incremental revenue from our recently-acquired hotels (Royalton and Morgans, acquired in May 2011). |
• | Hotel departmental expenses increased $6.8 million (including $4.1 million of incremental hotel departmental expenses from our recently-acquired hotels). As a percentage of total revenue, hotel departmental expenses increased from 36.9% to 37.6% compared to the same period in 2011. This change is primarily due to the mix and nature of the business at our recently acquired hotels, which have a higher percentage of food and beverage revenue than the remainder of our portfolio. Food and beverage operations generally has much higher expenses as a percent of revenue than the rooms department. |
• | Other property-related costs increased $3.9 million due to a combination of higher costs (such as marketing programs) and $2.2 million of incremental other property-related costs from our recently-acquired hotels. As a percentage of total revenue, this remained essentially unchanged compared to the same period in 2011. |
• | Management and franchise fees increased $711,000 compared to the same period in 2011, primarily due to higher revenues (which serve as the basis for determining such fees). As a percent of total revenue, these costs remained essentially unchanged from the same period in 2011. |
• | Taxes, insurance and lease expense increased $2.5 million compared to the same period in 2011 (including $641,000 of incremental taxes, insurance, and lease expenses from our recently-acquired hotels), and increased as a percentage of total revenue from 9.5% to 10.1% compared to the same period in 2011. The higher percentage of revenue reflects a combination of increased percentage lease expense in 2012 (computed as a percentage of hotel revenues in excess of base rent therefore, as revenue increases, percentage rent increases at a faster rate), and lower estimated Canadian taxes in 2011. |
• | Corporate expenses decreased $1.3 million and decreased as a percentage of total revenue from 4.6% to 3.7%. This decrease primarily reflects lower payroll tax withholding with respect to restricted cash awards, which were lower in 2012 than in 2011. Amounts withheld decreased as a result of a decrease in the restricted cash granted compared to the prior year. We recognize payroll tax withholding on these awards as an expense when awarded rather than expensed over the normal three-year vesting periods (as is the case with the remainder of the awards). |
• | Depreciation and amortization expense increased $786,000 compared to the same period in 2011 primarily reflecting $761,000 of incremental depreciation expense related to our recently-acquired hotels. |
• | Net interest expense decreased $1.7 million compared to the same period in 2011, primarily reflecting increased capitalized interest related to redeveloping the Knickerbocker Hotel. |
• | Discontinued operations relates to six hotels held for sale at March 31, 2012 and eight hotels sold in 2011. |
Three Months Ended March 31, | |||||||||||||||||||||
2012 | 2011 | ||||||||||||||||||||
Dollars | Shares | Per Share Amount | Dollars | Shares | Per Share Amount | ||||||||||||||||
Net loss | $ | (28,861 | ) | $ | (31,726 | ) | |||||||||||||||
Noncontrolling interests | 398 | 62 | |||||||||||||||||||
Preferred dividends | (9,678 | ) | (9,678 | ) | |||||||||||||||||
Net loss attributable to FelCor common stockholders | (38,141 | ) | 123,665 | $ | (0.31 | ) | (41,342 | ) | 95,350 | $ | (0.43 | ) | |||||||||
Depreciation and amortization | 31,573 | — | 0.26 | 30,787 | — | 0.32 | |||||||||||||||
Depreciation, discontinued operations and unconsolidated entities | 4,256 | — | 0.03 | 8,111 | — | 0.09 | |||||||||||||||
Gain on involuntary conversion, net | — | — | — | (150 | ) | — | — | ||||||||||||||
Noncontrolling interests in FelCor LP | (196 | ) | 636 | — | (120 | ) | 285 | (0.01 | ) | ||||||||||||
FFO | (2,508 | ) | 124,301 | (0.02 | ) | (2,714 | ) | 95,635 | (0.03 | ) | |||||||||||
Acquisition costs | 38 | — | — | 119 | — | — | |||||||||||||||
Debt extinguishment, including discontinued operations | 7 | — | — | 252 | — | 0.01 | |||||||||||||||
Severance costs | 380 | — | — | — | — | — | |||||||||||||||
Adjusted FFO | $ | (2,083 | ) | 124,301 | $ | (0.02 | ) | $ | (2,343 | ) | 95,635 | $ | (0.02 | ) |
Three Months Ended | |||||||
March 31, | |||||||
2012 | 2011 | ||||||
Net loss | $ | (28,861 | ) | $ | (31,726 | ) | |
Depreciation and amortization | 31,573 | 30,787 | |||||
Depreciation, discontinued operations and unconsolidated entities | 4,256 | 8,111 | |||||
Interest expense | 31,089 | 32,810 | |||||
Interest expense, discontinued operations and unconsolidated entities | 1,398 | 2,205 | |||||
Amortization of stock compensation | 1,296 | 1,803 | |||||
Noncontrolling interests in other partnerships | 202 | (58 | ) | ||||
EBITDA | 40,953 | 43,932 | |||||
Debt extinguishment, including discontinued operations | 7 | 252 | |||||
Acquisition costs | 38 | 119 | |||||
Gain on involuntary conversion | — | (150 | ) | ||||
Severance costs | 380 | — | |||||
Adjusted EBITDA | $ | 41,378 | $ | 44,153 |
Three Months Ended | |||||||
March 31, | |||||||
2012 | 2011 | ||||||
Same-store operating revenue: | |||||||
Room | $ | 173,016 | $ | 165,329 | |||
Food and beverage | 36,524 | 36,042 | |||||
Other operating departments | 11,627 | 12,224 | |||||
Same-store operating revenue | 221,167 | 213,595 | |||||
Same-store operating expense: | |||||||
Room | 47,733 | 45,798 | |||||
Food and beverage | 29,749 | 28,972 | |||||
Other operating departments | 5,734 | 5,766 | |||||
Other property related costs | 64,435 | 62,770 | |||||
Management and franchise fees | 10,366 | 9,852 | |||||
Taxes, insurance and lease expense | 14,950 | 13,857 | |||||
Same-store operating expense | 172,967 | 167,015 | |||||
Hotel EBITDA | $ | 48,200 | $ | 46,580 | |||
Hotel EBITDA Margin | 21.8 | % | 21.8 | % |
Three Months Ended | |||||||
March 31, | |||||||
2012 | 2011 | ||||||
Same-store operating revenue(a) | $ | 221,167 | $ | 213,595 | |||
Other revenue | 275 | 225 | |||||
Revenue from acquired hotels | — | (6,571 | ) | ||||
Total revenue | 221,442 | 207,249 | |||||
Same-store operating expense(a) | 172,967 | 167,015 | |||||
Consolidated hotel lease expense(b) | 9,194 | 8,304 | |||||
Unconsolidated taxes, insurance and lease expense | (1,831 | ) | (1,684 | ) | |||
Corporate expenses | 8,212 | 9,537 | |||||
Depreciation and amortization | 31,573 | 30,787 | |||||
Expenses from acquired hotels | — | (7,280 | ) | ||||
Other expenses | 963 | 631 | |||||
Total expense | 221,078 | 207,310 | |||||
Operating income (loss) | $ | 364 | $ | (61 | ) |
(a) | For same-store metrics, we have included the two hotels acquired in May 2011 for all periods presented. |
(b) | Consolidated hotel lease expense represents the percentage lease expense of our 51% owned operating lessees. The offsetting percentage lease revenue is included in equity in income from unconsolidated entities. |
• | Gains and losses related to extinguishment of debt and interest rate swaps - We exclude gains and losses related to extinguishment of debt and interest rate swaps from FFO and EBITDA because we believe that it is not indicative of ongoing operating performance of our hotel assets. This also represents an acceleration of interest expense or a reduction of interest expense, and interest expense is excluded from EBITDA. |
• | Cumulative effect of a change in accounting principle - Infrequently, the Financial Accounting Standards Board promulgates new accounting standards that require the consolidated statements of operations to reflect the cumulative effect of a change in accounting principle. We exclude these one-time adjustments in computing Adjusted FFO and Adjusted EBITDA because they do not reflect our actual performance for that period. |
Hotels | Room Count at March 31, 2012 | |||||
Consolidated Hotels | 69 | 20,050 | ||||
Unconsolidated hotel operations | 1 | 171 | ||||
Total hotels | 70 | 20,221 | ||||
50% joint ventures | 13 | (1,573 | ) | |||
60% joint venture | 1 | (214 | ) | |||
82% joint venture | 1 | (40 | ) | |||
90% joint ventures | 3 | (68 | ) | |||
Pro rata rooms attributed to joint venture partners | (1,895 | ) | ||||
Pro rata share of rooms owned | 18,326 |
Brand | Hotels | Rooms | % of Total Rooms | 2011 Hotel EBITDA (in thousands)(a) | ||||||||||||
Embassy Suites Hotels | 21 | 5,742 | 29 | 79,977 | ||||||||||||
Holiday Inn | 9 | 3,119 | 16 | 32,535 | ||||||||||||
Doubletree and Hilton | 5 | 1,206 | 6 | 15,347 | ||||||||||||
Sheraton and Westin | 4 | 1,604 | 8 | 15,198 | ||||||||||||
Renaissance and Marriott | 3 | 1,321 | 7 | 11,354 | ||||||||||||
Fairmont | 1 | 383 | 1 | 5,699 | ||||||||||||
Morgans/Royalton | 2 | 282 | 1 | 3,845 | ||||||||||||
Core hotels | 45 | 13,657 | 68 | 163,955 | ||||||||||||
Non-strategic hotels | 24 | 6,393 | 32 | 56,105 | ||||||||||||
Total same-store hotels | 69 | 20,050 | 100 | 220,060 | ||||||||||||
Market | ||||||||||||||||
San Francisco area | 4 | 1,637 | 8 | 16,808 | ||||||||||||
Boston | 3 | 915 | 5 | 14,027 | ||||||||||||
Los Angeles area | 3 | 677 | 3 | 13,727 | ||||||||||||
South Florida | 3 | 923 | 5 | 13,113 | ||||||||||||
Philadelphia | 2 | 728 | 4 | 8,805 | ||||||||||||
Atlanta | 3 | 952 | 5 | 8,418 | ||||||||||||
Myrtle Beach | 2 | 640 | 3 | 7,860 | ||||||||||||
Dallas | 2 | 784 | 4 | 7,151 | ||||||||||||
San Diego | 1 | 600 | 3 | 6,142 | ||||||||||||
Orlando | 2 | 473 | 2 | 5,809 | ||||||||||||
New York | 2 | 282 | 1 | 3,845 | ||||||||||||
Other markets | 18 | 5,046 | 25 | 58,250 | ||||||||||||
Core hotels | 45 | 13,657 | 68 | 163,955 | ||||||||||||
Non-strategic hotels | 24 | 6,393 | 32 | 56,105 | ||||||||||||
Total same-store hotels | 69 | 20,050 | 100 | 220,060 | ||||||||||||
Location | ||||||||||||||||
Urban | 16 | 4,930 | 25 | 64,841 | ||||||||||||
Airport | 10 | 3,267 | 16 | 35,570 | ||||||||||||
Resort | 10 | 2,927 | 15 | 35,194 | ||||||||||||
Suburban | 9 | 2,533 | 12 | 28,350 | ||||||||||||
Core hotels | 45 | 13,657 | 68 | 163,955 | ||||||||||||
Non-strategic hotels | 24 | 6,393 | 32 | 56,105 | ||||||||||||
Total same-store hotels | 69 | 20,050 | 100 | 220,060 |
(a) | Hotel EBITDA is a non-GAAP financial measure. A detailed reconciliation and further discussion of Hotel EBITDA is contained in the “Non-GAAP Financial Measures” section of Management’s Discussion and Analysis of Financial Condition and Results of Operations in Item 2 of this Quarterly Report on Form 10‑Q. |
Occupancy (%) | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2012 | 2011 | %Variance | |||||||
Embassy Suites Hotels | 73.8 | 73.3 | 0.7 | ||||||
Holiday Inn | 67.3 | 66.4 | 1.3 | ||||||
Doubletree and Hilton | 62.9 | 60.7 | 3.6 | ||||||
Sheraton and Westin | 57.6 | 65.9 | (12.6 | ) | |||||
Renaissance and Marriott | 73.5 | 71.0 | 3.6 | ||||||
Fairmont | 27.7 | 53.0 | (47.8 | ) | |||||
Morgans/Royalton | 76.0 | 79.9 | (5.0 | ) | |||||
Core hotels (45) | 68.1 | 69.1 | (1.4 | ) | |||||
Non-strategic hotels (24) | 72.6 | 70.5 | 3.0 | ||||||
Total same-store hotels (69) | 69.6 | 69.5 | — | ||||||
ADR ($) | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2012 | 2011 | %Variance | |||||||
Embassy Suites Hotels | 145.74 | 140.47 | 3.8 | ||||||
Holiday Inn | 123.36 | 116.64 | 5.8 | ||||||
Doubletree and Hilton | 133.10 | 132.80 | 0.2 | ||||||
Sheraton and Westin | 102.24 | 110.06 | (7.1 | ) | |||||
Renaissance and Marriott | 210.58 | 196.66 | 7.1 | ||||||
Fairmont | 213.15 | 199.71 | 6.7 | ||||||
Morgans/Royalton | 249.85 | 246.10 | 1.5 | ||||||
Core hotels (45) | 144.75 | 140.24 | 3.2 | ||||||
Non-strategic hotels (24) | 121.64 | 115.91 | 4.9 | ||||||
Total same-store hotels (69) | 137.02 | 132.34 | 3.5 | ||||||
RevPAR ($) | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2012 | 2011 | %Variance | |||||||
Embassy Suites Hotels | 107.57 | 102.98 | 4.5 | ||||||
Holiday Inn | 83.00 | 77.48 | 7.1 | ||||||
Doubletree and Hilton | 83.72 | 80.66 | 3.8 | ||||||
Sheraton and Westin | 58.86 | 72.49 | (18.8 | ) | |||||
Renaissance and Marriott | 154.82 | 139.54 | 10.9 | ||||||
Fairmont | 58.96 | 105.82 | (44.3 | ) | |||||
Morgans/Royalton | 189.78 | 196.69 | (3.5 | ) | |||||
Core hotels (45) | 98.62 | 96.88 | 1.8 | ||||||
Non-strategic hotels (24) | 88.29 | 81.71 | 8.1 | ||||||
Total same-store hotels (69) | 95.31 | 92.02 | 3.6 |
Occupancy (%) | |||||||||||
Three Months Ended | |||||||||||
March 31, | |||||||||||
2012 | 2011 | %Variance | |||||||||
San Francisco area | 73.8 | 69.3 | 6.5 | ||||||||
Boston | 49.0 | 68.6 | (28.5 | ) | |||||||
Los Angeles area | 81.0 | 72.2 | 12.2 | ||||||||
South Florida | 86.0 | 85.3 | 0.9 | ||||||||
Philadelphia | 48.7 | 57.8 | (15.8 | ) | |||||||
Atlanta | 72.0 | 74.9 | (3.8 | ) | |||||||
Myrtle Beach | 42.9 | 40.8 | 5.0 | ||||||||
Dallas | 68.5 | 69.8 | (1.8 | ) | |||||||
San Diego | 79.8 | 73.8 | 8.1 | ||||||||
Orlando | 84.8 | 84.8 | — | ||||||||
New York | 76.0 | 79.9 | (5.0 | ) | |||||||
Other markets | 66.6 | 67.1 | (0.7 | ) | |||||||
Core hotels (45) | 68.1 | 69.1 | (1.4 | ) | |||||||
Non-strategic hotels (24) | 72.6 | 70.5 | 3.0 | ||||||||
Total same-store hotels (69) | 69.6 | 69.5 | — | ||||||||
ADR ($) | |||||||||||
Three Months Ended | |||||||||||
March 31, | |||||||||||
2012 | 2011 | %Variance | |||||||||
San Francisco area | 156.02 | 136.15 | 14.6 | ||||||||
Boston | 151.02 | 146.90 | 2.8 | ||||||||
Los Angeles area | 141.27 | 145.14 | (2.7 | ) | |||||||
South Florida | 184.16 | 174.04 | 5.8 | ||||||||
Philadelphia | 120.14 | 124.14 | (3.2 | ) | |||||||
Atlanta | 110.84 | 106.87 | 3.7 | ||||||||
Myrtle Beach | 106.24 | 98.75 | 7.6 | ||||||||
Dallas | 107.44 | 122.49 | (12.3 | ) | |||||||
San Diego | 121.18 | 122.03 | (0.7 | ) | |||||||
Orlando | 143.72 | 147.43 | (2.5 | ) | |||||||
New York | 249.85 | 246.10 | 1.5 | ||||||||
Other markets | 146.61 | 141.38 | 3.7 | ||||||||
Core hotels (45) | 144.75 | 140.24 | 3.2 | ||||||||
Non-strategic hotels (24) | 121.64 | 115.91 | 4.9 | ||||||||
Total same-store hotels (69) | 137.02 | 132.34 | 3.5 | ||||||||
RevPAR ($) | |||||||||||
Three Months Ended | |||||||||||
March 31, | |||||||||||
2012 | 2011 | %Variance | |||||||||
San Francisco area | 115.14 | 94.34 | 22.0 | ||||||||
Boston | 74.02 | 100.72 | (26.5 | ) | |||||||
Los Angeles area | 114.41 | 104.79 | 9.2 | ||||||||
South Florida | 158.44 | 148.41 | 6.8 | ||||||||
Philadelphia | 58.49 | 71.77 | (18.5 | ) | |||||||
Atlanta | 79.82 | 80.02 | (0.2 | ) | |||||||
Myrtle Beach | 45.55 | 40.31 | 13.0 | ||||||||
Dallas | 73.58 | 85.46 | (13.9 | ) | |||||||
San Diego | 96.66 | 90.08 | 7.3 | ||||||||
Orlando | 121.83 | 125.00 | (2.5 | ) | |||||||
New York | 189.78 | 196.69 | (3.5 | ) | |||||||
Other markets | 97.66 | 94.83 | 3.0 | ||||||||
Core hotels (45) | 98.62 | 96.88 | 1.8 | ||||||||
Non-strategic hotels (24) | 88.29 | 81.71 | 8.1 | ||||||||
Total same-store hotels (69) | 95.31 | 92.02 | 3.6 |
Core Hotels | Brand | State | Rooms | % Owned | (a) | |||||
Birmingham | Embassy Suites Hotel | AL | 242 | |||||||
Phoenix – Biltmore | Embassy Suites Hotel | AZ | 232 | |||||||
Dana Point – Doheny Beach | Doubletree Guest Suites | CA | 196 | |||||||
Indian Wells – Esmeralda Resort & Spa | Renaissance Resort | CA | 560 | |||||||
Los Angeles – International Airport/South | Embassy Suites Hotel | CA | 349 | |||||||
Napa Valley | Embassy Suites Hotel | CA | 205 | |||||||
Oxnard – Mandalay Beach – Hotel & Resort | Embassy Suites Hotel | CA | 248 | |||||||
San Diego – On the Bay | Holiday Inn | CA | 600 | |||||||
San Francisco – Airport/Waterfront | Embassy Suites Hotel | CA | 340 | |||||||
San Francisco – Airport/South San Francisco | Embassy Suites Hotel | CA | 312 | |||||||
San Francisco – Fisherman’s Wharf | Holiday Inn | CA | 585 | |||||||
San Francisco – Union Square | Marriott | CA | 400 | |||||||
Santa Monica Beach – at the Pier | Holiday Inn | CA | 132 | |||||||
Deerfield Beach – Resort & Spa | Embassy Suites Hotel | FL | 244 | |||||||
Ft. Lauderdale – 17th Street | Embassy Suites Hotel | FL | 361 | |||||||
Miami – International Airport | Embassy Suites Hotel | FL | 318 | |||||||
Orlando – International Drive South/Convention | Embassy Suites Hotel | FL | 244 | |||||||
Orlando – Walt Disney World Resort | Doubletree Guest Suites | FL | 229 | |||||||
St. Petersburg – Vinoy Resort & Golf Club | Renaissance Resort | FL | 361 | |||||||
Atlanta – Buckhead | Embassy Suites Hotel | GA | 316 | |||||||
Atlanta – Gateway – Atlanta Airport | Sheraton | GA | 395 | |||||||
Atlanta – Perimeter Center | Embassy Suites Hotel | GA | 241 | 50 | % | |||||
Chicago – Lombard/Oak Brook | Embassy Suites Hotel | IL | 262 | 50 | % | |||||
Boston – at Beacon Hill | Holiday Inn | MA | 303 | |||||||
Boston – Copley Plaza | Fairmont | MA | 383 | |||||||
Boston – Marlborough | Embassy Suites Hotel | MA | 229 | |||||||
Baltimore – at BWI Airport | Embassy Suites Hotel | MD | 251 | 90 | % | |||||
Minneapolis – Airport | Embassy Suites Hotel | MN | 310 | |||||||
Charlotte – SouthPark | Doubletree Guest Suites | NC | 208 | |||||||
Parsippany | Embassy Suites Hotel | NJ | 274 | 50 | % | |||||
Secaucus – Meadowlands | Embassy Suites Hotel | NJ | 261 | 50 | % | |||||
New York – Midtown Manhattan – Morgans | Independent | NY | 114 | |||||||
New York – Midtown Manhattan – Royalton | Independent | NY | 168 | |||||||
Philadelphia – Historic District | Holiday Inn | PA | 364 | |||||||
Philadelphia – Society Hill | Sheraton | PA | 364 | |||||||
Pittsburgh – at University Center (Oakland) | Holiday Inn | PA | 251 | |||||||
Charleston – The Mills House Hotel | Holiday Inn | SC | 214 | |||||||
Myrtle Beach – Oceanfront Resort | Embassy Suites Hotel | SC | 255 | |||||||
Myrtle Beach Resort | Hilton | SC | 385 | |||||||
Nashville – Opryland – Airport (Briley Parkway) | Holiday Inn | TN | 383 | |||||||
Austin | Doubletree Guest Suites | TX | 188 | 90 | % |
Core Hotels | Brand | State | Rooms | % Owned | (a) | |||||
Dallas – Love Field | Embassy Suites Hotel | TX | 248 | |||||||
Dallas – Park Central | Westin | TX | 536 | 60 | % | |||||
Houston – Medical Center | Holiday Inn | TX | 287 | |||||||
Burlington Hotel & Conference Center | Sheraton | VT | 309 | |||||||
Non-strategic Hotels | ||||||||||
Phoenix – Crescent | Sheraton | AZ | 342 | |||||||
Santa Barbara – Goleta | Holiday Inn | CA | 160 | |||||||
Anaheim – North | Embassy Suites Hotel | CA | 222 | |||||||
Milpitas – Silicon Valley | Embassy Suites Hotel | CA | 266 | |||||||
San Rafael – Marin County | Embassy Suites Hotel | CA | 235 | 50 | % | |||||
Wilmington | Doubletree | DE | 244 | 90 | % | |||||
Jacksonville – Baymeadows | Embassy Suites Hotel | FL | 277 | |||||||
Orlando – International Airport | Holiday Inn | FL | 288 | |||||||
Atlanta – Airport | Embassy Suites Hotel | GA | 232 | |||||||
Atlanta – Galleria | Sheraton Suites | GA | 278 | |||||||
Kansas City – Overland Park | Embassy Suites Hotel | KS | 199 | 50 | % | |||||
Indianapolis – North | Embassy Suites Hotel | IN | 221 | 82 | % | |||||
Baton Rouge | Embassy Suites Hotel | LA | 223 | |||||||
New Orleans – Convention Center | Embassy Suites Hotel | LA | 370 | |||||||
New Orleans – French Quarter | Holiday Inn | LA | 374 | |||||||
Bloomington | Embassy Suites Hotel | MN | 218 | |||||||
Kansas City – Plaza | Embassy Suites Hotel | MO | 266 | 50 | % | |||||
Charlotte | Embassy Suites Hotel | NC | 274 | 50 | % | |||||
Raleigh – Crabtree | Embassy Suites Hotel | NC | 225 | 50 | % | |||||
Toronto – Airport | Holiday Inn | Ontario | 446 | |||||||
Nashville – Airport – Opryland Area | Embassy Suites Hotel | TN | 296 | |||||||
Austin – Central | Embassy Suites Hotel | TX | 260 | 50 | % | |||||
San Antonio – International Airport | Embassy Suites Hotel | TX | 261 | 50 | % | |||||
San Antonio – NW I-10 | Embassy Suites Hotel | TX | 216 | 50 | % | |||||
Held for Sale Hotels (included in discontinued operations) | ||||||||||
Boca Raton | Embassy Suites Hotel | FL | 263 | |||||||
Ft. Lauderdale – Cypress Creek | Sheraton Suites | FL | 253 | |||||||
Tampa – Tampa Bay | Doubletree Guest Suites | FL | 203 | |||||||
St. Paul – Downtown | Embassy Suites Hotel | MN | 208 | |||||||
Raleigh/Durham | Doubletree Guest Suites | NC | 203 | |||||||
San Antonio – International Airport | Holiday Inn | TX | 397 | |||||||
Unconsolidated Hotel | ||||||||||
New Orleans – French Quarter – Chateau LeMoyne | Holiday Inn | LA | 171 | 50 | % | |||||
Hotel under Development | ||||||||||
New York – Midtown Manhattan – Knickerbocker Hotel | Independent | NY | 330 | 95 | % |
(a) | We own 100% of the real estate interests unless otherwise noted. |
Item 3. | Quantitative and Qualitative Disclosures about Market Risk. |
Expected Maturity Date | |||||||||||||||||||||||||||||||
2012 | 2013 | 2014 | 2015 | 2016 | Thereafter | Total | Fair Value | ||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||||
Fixed-rate: | |||||||||||||||||||||||||||||||
Debt | $ | 3,613 | $ | 5,177 | $ | 659,866 | $ | 564 | $ | 8,813 | $ | 525,000 | $ | 1,203,033 | $ | 1,298,923 | |||||||||||||||
Average interest rate | 7.75 | % | 7.76 | % | 9.52 | % | 5.81 | % | 5.81 | % | 6.75 | % | 8.27 | % | |||||||||||||||||
Floating-rate: | |||||||||||||||||||||||||||||||
Debt | 81,743 | 133,107 | 37,021 | 200,260 | — | — | 452,131 | $ | 464,708 | ||||||||||||||||||||||
Average interest rate (a) | 2.05 | % | 2.74 | % | 5.19 | % | 8.10 | % | — | — | 5.19 | % | |||||||||||||||||||
Total debt | $ | 85,356 | $ | 138,284 | $ | 696,887 | $ | 200,824 | $ | 8,813 | $ | 525,000 | $ | 1,655,164 | |||||||||||||||||
Average interest rate | 2.29 | % | 2.92 | % | 9.29 | % | 8.09 | % | 5.81 | % | 6.75 | % | 7.43 | % | |||||||||||||||||
Net discount | (29,559 | ) | |||||||||||||||||||||||||||||
Total debt | $ | 1,625,605 |
(a) | The average floating interest rate represents the implied forward rates in the yield curve at March 31, 2012. |
Item 4. | Controls and Procedures. |
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds. |
Item 6. | Exhibits. |
Exhibit Number | Description of Exhibit | |
31.1 | Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 for FelCor. | |
31.2 | Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 for FelCor. | |
31.3 | Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 for FelCor LP. | |
31.4 | Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 for FelCor LP. | |
32.1 | Certification of Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 for FelCor. | |
32.2 | Certification of Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 for FelCor LP. | |
101.INS | XBRL Instance Document. Submitted electronically with this report. | |
101.SCH | XBRL Taxonomy Extension Schema Document. Submitted electronically with this report. | |
101.CAL | XBRL Taxonomy Calculation Linkbase Document. Submitted electronically with this report. | |
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document. Submitted electronically with this report. | |
101.LAB | XBRL Taxonomy Label Linkbase Document. Submitted electronically with this report. | |
101.PRE | XBRL Taxonomy Presentation Linkbase Document. Submitted electronically with this report. |
FELCOR LODGING TRUST INCORPORATED | |||
Date: May 1, 2012 | By: | /s/ Jeffrey D. Symes | |
Name: | Jeffrey D. Symes | ||
Title: | Senior Vice President, Chief Accounting Officer and Controller |
FELCOR LODGING LIMITED PARTNERSHIP | |||
a Delaware limited partnership | |||
By: | FelCor Lodging Trust Incorporated | ||
Its General Partner | |||
Date: May 1, 2012 | By: | /s/ Jeffrey D. Symes | |
Name: | Jeffrey D. Symes | ||
Title: | Senior Vice President, Chief Accounting Officer and Controller |
1. | I have reviewed this Quarterly Report on Form 10-Q of FelCor Lodging Trust Incorporated; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent function): |
a) | all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b) | any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
Date: | May 1, 2012 | /s/Richard A. Smith | |
Richard A. Smith Chief Executive Officer |
1. | I have reviewed this Quarterly Report on Form 10-Q of FelCor Lodging Trust Incorporated; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent function): |
a) | all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b) | any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
Date: | May 1, 2012 | /s/Andrew J. Welch | |
Andrew J. Welch Chief Financial Officer |
1. | I have reviewed this Quarterly Report on Form 10-Q of FelCor Lodging Limited Partnership; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent function): |
a) | all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b) | any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
Date: | May 1, 2012 | /s/Richard A. Smith | |
Richard A. Smith Chief Executive Officer of FelCor Lodging Trust Incorporated, as general partner of FelCor Lodging Limited Partnership |
1. | I have reviewed this Quarterly Report on Form 10-Q of FelCor Lodging Limited Partnership; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent function): |
a) | all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b) | any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
Date: | May 1, 2012 | /s/Andrew J. Welch | |
Andrew J. Welch Chief Financial Officer of FelCor Lodging Trust Incorporated, as general partner of FelCor Lodging Limited Partnership |
/s/Richard A. Smith | |
Richard A. Smith | |
Chief Executive Officer | |
/s/Andrew J. Welch | |
Andrew J. Welch | |
Chief Financial Officer |
/s/Richard A. Smith | |
Richard A. Smith | |
Chief Executive Officer of FelCor Lodging Trust Incorporated, as general partner of FelCor Lodging Limited Partnership | |
/s/Andrew J. Welch | |
Andrew J. Welch | |
Chief Financial Officer of FelCor Lodging Trust Incorporated, as general partner of FelCor Lodging Limited Partnership |
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