EX-99.2 3 w21692exv99w2.htm EXHIBIT 99.2 exv99w2
 

Exhibit 99.2
Interstate Hotels & Resorts, Inc.
Reconciliations of Non-GAAP Financial Measures
(Unaudited, in thousands except per share amounts)
                         
    2004     2005     2006  
    (actual)     (actual)     (forecast)  
Net income (loss)
   $ (5,663 )   $ 12,877     $ 11,800  
Adjustments:
                        
Depreciation and amortization
     9,199       9,141       10,300  
Interest expense, net
     7,600       9,283       7,800  
Discontinued operations, net
     252       1,417       —  
Income tax expense (benefit)
     (994 )     7,327       8,200  
 
                  
EBITDA
     10,394       40,045       38,100  
Restructuring charges
     4,741       2,043       —  
Asset impairments and other write-offs
     11,807       5,583       8,600  
Gain on sale of investments and extinguishment of debt
     —       (7,203 )     —  
Equity in (earnings) losses of affiliates
     1,056       (3,492 )     1,100  
Minority interest expense (benefit)
     (45 )     173       200  
Other
     (55 )     —       —  
 
                  
 
Adjusted EBITDA
   $ 27,898     $ 37,149     $ 48,000  
 
                  
                         
    2004     2005     2006  
    (actual)     (actual)     (forecast)  
Net income (loss)
   $ (5,663 )   $ 12,877     $ 11,800  
Adjustments:
                        
Restructuring charges
     4,741       2,043       —  
Asset impairments and other write-offs
     11,807       5,583       8,600  
Gain on sale of investments and extinguishment of debt
     —       (7,203 )     —  
Deferred financing costs write-off
     —       1,847       —  
Equity interest in the gain on sale of Hilton San Diego
     —       (4,202 )     —  
Equity interest in the loss on sale of Wyndham Milwaukee
     —       395       —  
Equity in the write-off of deferred financing costs
     —       295       —  
Equity interest in the gain on sale of Residence Inn Houston
             (1,107 )     —  
Other
     (55 )     —       —  
Minority interest
     (149 )     39       —  
Income tax rate adjustment
     (1,360 )     3,265       (3,500 )
 
                  
 
Adjusted net income
   $ 9,321     $ 13,832     $ 16,900  
 
                  
 
Adjusted diluted earnings per share
   $ 0.30     $ 0.45     $ 0.54  
 
                  
Note:
These amounts reconcile the Non-GAAP Financial measures summarized in the Financial Highlights section of the investor package. For a full disclosure on the use of Non-GAAP Financial measures please see the fourth quarter earnings release furnished to the SEC on February 22, 2006 and first-quarter earnings release furnished to the SEC on May 3, 2006.