Delaware | 001-33738 | 16-1736884 | ||
(State or other jurisdiction of incorporation) |
(Commission File Number) | (IRS Employer Identification No.) |
475 Tenth Avenue New York, NY |
10018 |
|
(Address of principal executive offices) | (Zip Code) |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Exhibit Number | Description | |||
99.1 | Unaudited Pro Forma Consolidated Financial Statements of Morgans Hotel Group Co. |
MORGANS HOTEL GROUP CO. |
||||
Date: November 30, 2011 | By: | /s/ Richard Szymanski | ||
Richard Szymanski | ||||
Chief Financial Officer |
Exhibit Number | Description | |||
99.1 | Unaudited Pro Forma Consolidated Financial Statements of Morgans Hotel Group Co. |
Disposition of | ||||||||||||
Investment in | ||||||||||||
Historical as of | London Joint | Pro Forma as of | ||||||||||
September 30, 2011 | Venture | September 30, 2011 | ||||||||||
ASSETS |
||||||||||||
Property and equipment, net |
$ | 283,811 | $ | | $ | 283,811 | ||||||
Goodwill |
54,057 | | 54,057 | |||||||||
Investments in and advances to unconsolidated joint ventures |
5,063 | | 5,063 | |||||||||
Cash and cash equivalents |
12,829 | 73,132 | A | 85,961 | ||||||||
Restricted cash |
7,148 | | 7,148 | |||||||||
Accounts receivable, net |
8,250 | 868 | B | 9,118 | ||||||||
Related party receivables |
5,186 | (868 | ) B | 4,318 | ||||||||
Prepaid expenses and other assets |
7,202 | | 7,202 | |||||||||
Deferred tax asset, net |
81,421 | (2,641 | ) C | 78,780 | ||||||||
Other, net |
15,834 | | 15,834 | |||||||||
TOTAL ASSETS |
$ | 480,801 | $ | 70,491 | $ | 551,292 | ||||||
LIABILITIES AND STOCKHOLDERS DEFICIT |
||||||||||||
Debt and capital lease obligations |
$ | 433,267 | $ | | $ | 433,267 | ||||||
Accounts payable and accrued liabilities |
32,353 | | 32,353 | |||||||||
Distributions and losses in excess of investment in unconsolidated joint ventures |
272 | (272 | ) D | | ||||||||
Deferred gains on assets sales |
77,792 | 73,404 | E | 151,196 | ||||||||
Other liabilities |
14,291 | | 14,291 | |||||||||
Total Liabilities |
557,975 | 73,132 | 631,107 | |||||||||
Commitments and contingencies |
||||||||||||
Preferred securities, $.01 par value; liquidation preference $1,000 per share,
75,000 shares authorized and issued at September 30, 2011 |
53,319 | | 53,319 | |||||||||
Common stock, $.01 par value; 200,000,000 shares authorized; 36,277,495 shares
issued at September 30, 2011 |
363 | | 363 | |||||||||
Additional paid-in capital |
289,971 | | 289,971 | |||||||||
Treasury stock, at cost, 5,555,654 shares of common stock at September 30, 2011 |
(89,155 | ) | | (89,155 | ) | |||||||
Accumulated comprehensive loss |
(3,683 | ) | 3,647 | F | (36 | ) | ||||||
Accumulated deficit |
(336,360 | ) | (6,288 | ) G | (342,648 | ) | ||||||
Total Morgans Hotel Group Co. stockholders deficit |
(85,545 | ) | (2,641 | ) | (88,186 | ) | ||||||
Noncontrolling interest |
8,371 | | 8,371 | |||||||||
Total deficit |
(77,174 | ) | (2,641 | ) | (79,815 | ) | ||||||
TOTAL LIABILITIES AND STOCKHOLDERS DEFICIT |
$ | 480,801 | $ | 70,491 | $ | 551,292 | ||||||
Historical for the | Disposition of | Pro Forma for | ||||||||||||||
nine months | Investment in | the nine months | ||||||||||||||
ended | London Joint | Amortization of | ended | |||||||||||||
September 30, | Venture | Deferred Gain | September 30, | |||||||||||||
2011 | (A) | (B) | 2011 | |||||||||||||
Revenues: |
||||||||||||||||
Rooms |
$ | 90,951 | $ | | $ | | $ | 90,951 | ||||||||
Food and beverage |
49,216 | | | 49,216 | ||||||||||||
Other hotel operating |
5,020 | | | 5,020 | ||||||||||||
Total hotel revenues |
145,187 | | | 145,187 | ||||||||||||
Management fee related party and other income |
10,112 | | | 10,112 | ||||||||||||
Total revenues |
155,299 | | | 155,299 | ||||||||||||
Operating Costs and Expenses: |
||||||||||||||||
Rooms |
29,122 | | | 29,122 | ||||||||||||
Food and beverage |
41,901 | | | 41,901 | ||||||||||||
Other departmental |
3,117 | | | 3,117 | ||||||||||||
Hotel selling, general and administrative |
33,301 | | | 33,301 | ||||||||||||
Property taxes, insurance and other |
12,136 | | | 12,136 | ||||||||||||
Total hotel operating expenses |
119,577 | | | 119,577 | ||||||||||||
Corporate expenses, including stock compensation of $10.9 million |
25,920 | | | 25,920 | ||||||||||||
Depreciation and amortization |
17,405 | | | 17,405 | ||||||||||||
Restructuring, development and disposal costs |
10,518 | | | 10,518 | ||||||||||||
Total operating costs and expenses |
173,420 | | | 173,420 | ||||||||||||
Operating loss |
(18,121 | ) | | | (18,121 | ) | ||||||||||
Interest expense, net |
27,783 | | | 27,783 | ||||||||||||
Equity in loss of unconsolidated joint ventures |
23,187 | 1,392 | | 24,579 | ||||||||||||
Gain on assets sales |
(1,721 | ) | | (2,803 | ) | (4,524 | ) | |||||||||
Other non-operating expenses |
2,885 | | | 2,885 | ||||||||||||
(Loss) income before income tax expense |
(70,255 | ) | (1,392 | ) | 2,803 | (68,844 | ) | |||||||||
Income tax expense |
523 | | | 523 | ||||||||||||
Net (loss) income from continuing operations |
(70,778 | ) | (1,392 | ) | 2,803 | (69,367 | ) | |||||||||
Income from discontinued operations, net of tax |
485 | | | 485 | ||||||||||||
Net (loss) income |
(70,293 | ) | (1,392 | ) | 2,803 | (68,882 | ) | |||||||||
Net loss attributable to noncontrolling interest |
2,007 | 44 | (87 | ) | 1,964 | |||||||||||
Net (loss) income attributable to Morgans Hotel Group Co. |
(68,286 | ) | (1,348 | ) | 2,716 | (66,918 | ) | |||||||||
Preferred stock dividends and accretion |
6,701 | | | 6,701 | ||||||||||||
Net (loss) income attributable to common stockholders |
$ | (74,987 | ) | $ | (1,348 | ) | $ | 2,716 | $ | (73,619 | ) | |||||
(Loss) Income per share: |
||||||||||||||||
Basic and diluted continuing operations |
(2.41 | ) | (2.36 | ) | ||||||||||||
Basin and diluted discontinued operations |
0.02 | 0.02 | ||||||||||||||
Basic and diluted attributable to common stockholders |
(2.39 | ) | (2.35 | ) | ||||||||||||
Weighted average number of common shares outstanding: |
||||||||||||||||
Basic and diluted |
31,359 | 31,359 |
Disposition of | ||||||||||||||||
Historical for the | Investment in | Pro Forma for | ||||||||||||||
year ended | London Joint | Amortization of | the year ended | |||||||||||||
December 31, | Venture | Deferred Gain | December 31, | |||||||||||||
2010 | (A) | (B) | 2010 | |||||||||||||
Revenues: |
||||||||||||||||
Rooms |
$ | 139,268 | $ | | $ | | $ | 139,268 | ||||||||
Food and beverage |
69,451 | | | 69,451 | ||||||||||||
Other hotel operating |
9,313 | | | 9,313 | ||||||||||||
Total hotel revenues |
218,032 | | | 218,032 | ||||||||||||
Management fee related party and other income |
18,338 | | | 18,338 | ||||||||||||
Total revenues |
236,370 | | | 236,370 | ||||||||||||
Operating Costs and Expenses: |
||||||||||||||||
Rooms |
42,620 | | | 42,620 | ||||||||||||
Food and beverage |
58,227 | | | 58,227 | ||||||||||||
Other departmental |
5,304 | | | 5,304 | ||||||||||||
Hotel selling, general and administrative |
48,216 | | | 48,216 | ||||||||||||
Property taxes, insurance and other |
16,233 | | | 16,233 | ||||||||||||
Total hotel operating expenses |
170,600 | | | 170,600 | ||||||||||||
Corporate expenses, including stock compensation of $10.9 million |
34,538 | | | 34,538 | ||||||||||||
Depreciation and amortization |
32,158 | | | 32,158 | ||||||||||||
Restructuring, development and disposal costs |
3,916 | | | 3,916 | ||||||||||||
Impairment loss on receivables from unconsolidated joint venture |
5,549 | | | 5,549 | ||||||||||||
Total operating costs and expenses |
246,761 | | | 246,761 | ||||||||||||
Operating loss |
(10,391 | ) | | | (10,391 | ) | ||||||||||
Interest expense, net |
41,346 | | | 41,346 | ||||||||||||
Interest expense on property held for non-sale disposition |
1,137 | | | 1,137 | ||||||||||||
Equity in loss of unconsolidated joint ventures |
16,203 | 3,470 | | 19,673 | ||||||||||||
Gain on sale of assets |
| | (3,737 | ) | (3,737 | ) | ||||||||||
Other non-operating expenses |
33,076 | | | 33,076 | ||||||||||||
Loss before income tax expense |
(102,153 | ) | (3,470 | ) | 3,737 | (101,886 | ) | |||||||||
Income tax benefit |
(1,335 | ) | | | (1,335 | ) | ||||||||||
Net (loss) income from continuing operations |
(100,818 | ) | (3,470 | ) | 3,737 | (100,551 | ) | |||||||||
Income from discontinued operations, net of tax |
17,170 | | | 17,170 | ||||||||||||
Net (loss) income |
(83,648 | ) | (3,470 | ) | 3,737 | (83,381 | ) | |||||||||
Net loss (income) attributable to noncontrolling interest |
2,239 | 110 | (119 | ) | 2,230 | |||||||||||
Net (loss) income attributable to Morgans Hotel Group Co. |
(81,409 | ) | (3,360 | ) | 3,618 | (81,151 | ) | |||||||||
Preferred stock dividends and accretion |
(8,554 | ) | | | (8,554 | ) | ||||||||||
Net (loss) income attributable to common stockholders |
(89,963 | ) | (3,360 | ) | 3,618 | (89,705 | ) | |||||||||
(Loss) Income per share: |
||||||||||||||||
Basic and diluted continuing operations |
(3.50 | ) | (3.50 | ) | ||||||||||||
Basin and diluted discontinued operations |
0.56 | 0.56 | ||||||||||||||
Basic and diluted attributable to common stockholders |
(2.94 | ) | (2.94 | ) | ||||||||||||
Weighted average number of common shares outstanding: |
||||||||||||||||
Basic and diluted |
30,563 | 30,563 |