EX-99.1 2 dex991.txt EXHIBIT 99.1 EXHIBIT 99.1 SUPPPLEMENTAL INFORMATION The following is supplemental information regarding MeriStar Hotels & Resorts, Inc. UNAUDITED PRO FORMA FINANCIAL STATEMENTS The following unaudited pro forma quarterly statements of operations show adjustments to the results of our operations (excluding non-recurring items) for the quarters ended March 31, 2000, June 30, 2000, September 30, 2000 and December 31, 2000 from changes to the federal tax laws relating to real estate investment trusts, which are commonly known as the REIT Modernization Act, or the RMA. The following statements reflect the assignment of all hotel leases between MeriStar Hospitality Corporation and us to a taxable subsidiary of MeriStar Hospitality. In addition, we have executed management contracts between that subsidiary and us in accordance with the changes to the federal tax laws that were effective as of January 1, 2001. As a result of these activities, all of our net operating assets and liabilities associated with the hotels formerly leased from MeriStar Hospitality were transferred to the taxable subsidiary of MeriStar Hospitality. Also, as a result of these actions, the net revenues from the transferred assets and the expenses associated with those revenues were eliminated and replaced with management fee income and expenses associated with that income. The unaudited pro forma quarterly statements of operations are not necessarily indicative of what our future financial position or results of operations actually would have been if the RMA had been enacted at the beginning of the periods presented. Additionally, the unaudited pro forma quarterly statements of operations do not purport to project our results of operations at any future date or for any future period. The unaudited pro forma quarterly statements of operations should be read in conjunction with our historical consolidated financial statements and related notes. MeriStar Hotels & Resorts, Inc. Unaudited Pro Forma Statement of Operations(1) For the Twelve Months Ended December 31, 2000 (dollars in thousands, except per share amounts)
Three Months Three Months Three Months Three Months Twelve Months Ended Ended Ended Ended Ended March 31, 2000 June 30, 2000 September 30, 2000 December 31, 2000 December 31, 2000 As Adjusted As Adjusted As Adjusted As Adjusted As Adjusted -------------- ------------- ------------------ ----------------- ----------------- Revenue Rooms $36,849 $39,803 $38,218 $32,427 $147,297 Corporate Housing - 9,392 29,369 26,111 64,872 Food and beverage 3,084 3,442 3,344 3,753 13,623 Other operating departments 2,178 2,411 1,877 1,665 8,131 Management and other fees 11,243 12,112 13,219 9,447 46,021 -------------- ------------- ------------------ ----------------- ----------------- Total revenue 53,354 67,160 86,027 73,403 279,944 -------------- ------------- ------------------ ----------------- ----------------- Operating expenses by department: Rooms 8,724 8,683 9,149 7,849 34,405 Corporate Housing - 6,037 18,744 18,046 42,827 Food and beverage 2,472 2,596 2,506 2,255 9,829 Other operating departments 1,133 1,296 1,123 1,317 4,869 Undistributed operating expenses: Administrative and general 14,503 15,212 18,719 17,567 66,001 Property operating costs 8,512 8,434 8,856 5,541 31,343 Participating lease expense 14,542 18,067 17,261 16,930 66,800 Depreciation and amortization 1,643 2,119 2,778 2,930 9,470 -------------- ------------- ------------------ ----------------- ----------------- Total operating expenses 51,529 62,444 79,136 72,435 265,544 -------------- ------------- ------------------ ----------------- ----------------- Net operating income 1,825 4,716 6,891 968 14,400 -------------- ------------- ------------------ ----------------- ----------------- Interest expense, net 1,191 1,353 1,986 1,871 6,401 -------------- ------------- ------------------ ----------------- ----------------- Income before minority interests and income taxes 634 3,363 4,905 (903) 7,999 -------------- ------------- ------------------ ----------------- ----------------- Minority interests 42 221 322 (59) 526 Income taxes 235 1,248 1,819 (335) 2,967 -------------- ------------- ------------------ ----------------- ----------------- Net income $ 357 $ 1,894 $ 2,764 $ (509) $ 4,506 ============== ============= ================== ================= ================= Weighted average number of diluted shares of common stock outstanding 35,505 33,605 39,237 35,950 34,148 ============== ============= ================== ================= ================= Net income per diluted common share excluding non-recurring items $ 0.01 $ 0.06 $ 0.08 $ (0.01) $ 0.13 ============== ============= ================== ================= =================
(1) Excludes the effect of EITF 98-9.