EX-99.1 2 g04115exv99w1.htm EX-99.1 PRO FORMA FINANCIAL DATA EX-99.1 PRO FORMA FINANCIAL DATA
 

EXHIBIT 99.1
Lodgian, Inc.
Pro Forma Financial Data — Core Hotel Portfolio (43 hotels)
Trailing 12 Months Ended September 30, 2005
Unaudited in thousands
                                         
                                    Trailing 12  
    Q4 2005     Q1 2006     Q2 2006     Q3 2006     Months  
Supplemental Data:
                                       
Rooms Available
  684,493     706,904     721,084     729,008     2,841,489  
Rooms Sold
    429,892       465,847       517,859       504,216       1,917,814  
Occupancy
    62.8%       65.9%       71.8%       69.2%       67.5%  
Average Daily Rate
  $ 92.69     $ 102.57     $ 103.87     $ 100.05     $ 100.27  
Revenue per Available Room (RevPAR)
  $ 58.84     $ 67.59     $ 74.59     $ 69.20     $ 67.67  
 
                                       
Income Statement:
                                       
Revenues:
                                       
Rooms
  $ 40,278     $ 47,783     $ 53,787     $ 50,445     $ 192,293  
Food and beverage
    11,720       12,066       15,637       12,912       52,335  
Other
    1,827       1,938       2,146       2,099       8,010  
 
                             
Total revenues
    53,825       61,787       71,570       65,456       252,638  
 
                             
Operating expenses:
                                       
Direct:
                                       
Rooms
    10,973       12,136       13,305       13,291       49,705  
Food and beverage
    8,296       8,987       10,469       9,771       37,523  
Other
    1,467       1,520       1,651       1,519       6,157  
 
                             
Total direct operating expenses
    20,736       22,643       25,425       24,581       93,385  
 
                             
 
    33,089       39,144       46,145       40,875       159,253  
Other operating expenses:
                                       
Other hotel operating costs
    16,931       18,453       18,718       19,043       73,145  
Property and other taxes, insurance, and leases
    3,887       4,352       4,673       5,800       18,712  
Corporate and other
    4,336       4,916       5,295       5,590       20,137  
Casualty (gains) losses, net
    (20,857 )     96       2       (3,086 )     (23,845 )
Depreciation and amortization
    6,961       7,317       7,662       7,846       29,786  
Impairment of long-lived assets
    1,018       194       16       323       1,551  
 
                             
Total other operating expenses
    12,276       35,328       36,366       35,516       119,486  
 
                             
Operating income
    20,813       3,816       9,779       5,359       39,767  
Other income (expenses):
                                       
Business interruption insurance proceeds
    1,772             695       2,447       4,914  
Interest income and other
    271       308       849       786       2,214  
Interest expense
    (5,435 )     (6,296 )     (6,182 )     (6,436 )     (24,349 )
 
                             
Income before income taxes and minority interests
    17,421       (2,172 )     5,141       2,156       22,546  
Minority interests (net of taxes, nil)
    (590 )     (4 )     (136 )     101       (629 )
Provision for income taxes
    (8,385 )     604       (2,317 )     (1,019 )     (11,117 )
 
                             
Income (Loss)
    8,446       (1,572 )     2,688       1,238       10,800  
 
                             
Reconciliation of EBITDA and Adjusted EBITDA (non-GAAP measures) with Income (Loss):
                                       
Income (loss)
  $ 8,446     $ (1,572 )   $ 2,688     $ 1,238     $ 10,800  
Depreciation and amortization
    6,961       7,317       7,662       7,846       29,786  
Interest income
    (261 )     (308 )     (849 )     (786 )     (2,204 )
Interest expense
    5,435       6,296       6,182       6,436       24,349  
Provision (benefit) for income taxes
    8,385       (604 )     2,317       1,019       11,117  
 
                             
EBITDA
  $ 28,966     $ 11,129     $ 18,000     $ 15,753     $ 73,848  
 
                             
Adjustments to EBITDA:
                                       
Post-emergence Chapter 11 expenses, included in corporate and other on consolidated statement of operations
    (3 )     3                    
Write-off of investment in subsidiary for non-consolidated hotel
                             
Write-off of receivable for non-consolidated hotel
    1                         1  
Impairment loss
    1,018       194       16       323       1,551  
Casualty (gains) losses, net
    (20,857 )     96       2       (3,086 )     (23,845 )
 
                             
Adjusted EBITDA
  $ 9,125     $ 11,422     $ 18,018     $ 12,990     $ 51,555  
 
                             
Footnotes:
1 — The Crowne Plaza hotels in West Palm Beach and Melbourne, FL were closed during the 4th quarter of 2005 due to hurricane damage. The West Palm Beach hotel reopened on December 29, 2005 and the Melbourne hotel reopened on January 25, 2006.
2 — In Q4 2005, $28,753 in casualty gains were recorded, which resulted in an increase in minority interest expense of $7,896. By definition, the casualty gain is included in the Adjusted EBITDA calculation, but the corresponding impact on minority interest is not. To properly reflect the impact of the casualty gain (net of minority interest) on Adjusted EBITDA, we have reclassified the minority interest effect, thus reducing both minority interest and casualty gains by $7,896.