Maryland | 001-34571 | 27-1055421 | ||
(State or other jurisdiction | (Commission | (I.R.S. Employer | ||
of incorporation) | File Number) | Identification No.) |
7315 Wisconsin Avenue, Suite 1100 West | ||
Bethesda, Maryland | 20814 | |
(Address of principal executive offices) | (Zip Code) |
Exhibit No. | Description | |
99.1 | Press release, dated April 27, 2016, providing the results of operations for the three months ended March 31, 2016. |
PEBBLEBROOK HOTEL TRUST | |||
April 29, 2016 | By: | /s/ Raymond D. Martz | |
Name: | Raymond D. Martz | ||
Title: | Executive Vice President, Chief Financial Officer, Treasurer and Secretary |
Exhibit No. | Description | |
99.1 | Press release, dated April 27, 2016, providing the results of operations for the three months ended March 31, 2016. |
First Quarter | |||||||||
2016 | 2015 | ||||||||
($ in millions except per share and RevPAR data) | |||||||||
Net income to common shareholders | $ | 6.6 | $ | 0.7 | |||||
Net income per diluted share | $ | 0.09 | $ | 0.01 | |||||
Same-Property RevPAR(1) | $ | 195.01 | $ | 180.50 | |||||
Same-Property RevPAR growth rate | 8.0 | % | |||||||
Same-Property EBITDA(1) | $ | 62.0 | $ | 53.8 | |||||
Same-Property EBITDA growth rate | 15.2 | % | |||||||
Same-Property EBITDA Margin(1) | 29.8 | % | 27.6 | % | |||||
Adjusted EBITDA(1) | $ | 56.2 | $ | 38.8 | |||||
Adjusted EBITDA growth rate | 44.8 | % | |||||||
Adjusted FFO (1) | $ | 40.6 | $ | 24.4 | |||||
Adjusted FFO per diluted share(1) | $ | 0.56 | $ | 0.34 | |||||
Adjusted FFO per diluted share growth rate | 64.7 | % | |||||||
(1) See tables later in this press release for a description of same-property information and reconciliations from net income (loss) to non-GAAP financial measures, including Earnings Before Interest, Taxes, Depreciation and Amortization ("EBITDA"), Adjusted EBITDA, Funds from Operations ("FFO"), FFO per share, Adjusted FFO and Adjusted FFO per share. For the details as to which hotels are included in Same-Property Revenue Per Available Room (“RevPAR”), Average Daily Rate (“ADR”), Occupancy, Revenues, Expenses, EBITDA and EBITDA Margins appearing in the table above and elsewhere in this press release, refer to the Same-Property Inclusion Reference Table later in this press release. | |||||||||
▪ | Same-Property RevPAR and Room Revenue: Same-Property RevPAR in the first quarter of 2016 increased 8.0 percent over the same period of 2015 to $195.01. Same-Property Room Revenue increased by 9.9 percent, greater than RevPAR largely due to the extra day in February and the increase in the Same-Property room count. Same-Property ADR grew 3.1 percent from the prior year quarter to $236.23. Same-Property Occupancy rose 4.8 percent to 82.6 percent. Same-Property RevPAR for our wholly owned properties, which excludes the Company’s 49 percent interest in its six-hotel joint venture (the “Manhattan Collection”), increased 8.9 percent from the prior year period. |
▪ | Same-Property EBITDA: The Company’s hotels generated $62.0 million of Same-Property EBITDA for the quarter ended March 31, 2016, climbing 15.2 percent from the same period of 2015. Same-Property Revenues increased 6.8 percent, while Same-Property Expenses rose just 3.6 percent. As a result, Same-Property EBITDA Margin grew 217 basis points to 29.8 percent for the first quarter of 2016, as compared to the same period last year. For the quarter, flow-through of Same-Property Revenues to Same-Property EBITDA was 61.9 percent. Same-Property EBITDA for our wholly owned properties grew 15.9 percent compared with the prior year period. |
▪ | Adjusted EBITDA: The Company’s Adjusted EBITDA rose to $56.2 million from $38.8 million in the prior year period, an increase of $17.4 million, or 44.8 percent. |
▪ | Adjusted FFO: The Company’s Adjusted FFO climbed 66.6 percent to $40.6 million from $24.4 million in the prior year period. |
▪ | Dividends: On March 15, 2016, the Company declared a regular quarterly cash dividend of $0.38 per share on its common shares, an increase of 23 percent from the prior quarterly dividend of $0.31 per share, a regular quarterly cash dividend of $0.50 per share on its 8.00% Series B Cumulative Redeemable Preferred Shares and a regular quarterly cash dividend of $0.40625 per share on its 6.50% Series C Cumulative Redeemable Preferred Shares. |
▪ | Union Station Hotel Nashville, Autograph Collection (estimated at $15.5 million), which has already begun its phased comprehensive guest rooms, public space and meeting space renovation expected to be completed in the third quarter of 2016; |
▪ | The Westin Colonnade, Coral Gables (estimated at $18.0 million), which already began its phased comprehensive guest rooms, public area and meeting space renovation, expected to be completed and re-launched as a Tribute Portfolio property late in the third quarter of 2016; |
▪ | Hotel Palomar Los Angeles Beverly Hills (estimated at $9.0 million), which will undergo a guest rooms and public space renovation to begin in the fourth quarter of 2016 with expected completion in the first quarter of 2017; |
▪ | Mondrian Los Angeles (estimated at $8.0 million), which will undergo a guest rooms renovation to begin in the fourth quarter of 2016 with expected completion in the first quarter of 2017; |
▪ | Revere Hotel Boston Common (estimated at $20.0 million), which will undergo a comprehensive property renovation to start in the fourth quarter of 2016 with expected completion in the first quarter of 2017; and |
▪ | The Tuscan Fisherman’s Wharf, a Best Western Plus Hotel (estimated at $15.0 million), which will undergo a comprehensive property renovation beginning early in 2017. |
▪ | On January 6, 2016, the Company announced that it exercised the accordion options on two of its existing unsecured term loans to borrow an additional $150.0 million; |
▪ | On March 11, 2016, the Company redeemed all 5,600,000 of its issued and outstanding 7.875% Series A Cumulative Preferred Shares; and |
▪ | On April 5, 2016, the Company repaid the $62.8 million mortgage secured by the Embassy Suites San Diego Bay - Downtown, which was subject to a 6.28 percent interest rate. |
2016 Outlook as of April 27, 2016 | Variance to Prior Outlook as of February 22, 2016 | |||||||||||||
Low | High | Low | High | |||||||||||
($ and shares/units in millions, except per share and RevPAR data) | ||||||||||||||
Net income | $ | 65.7 | $ | 77.7 | — | — | ||||||||
Net income per diluted share | $ | 0.90 | $ | 1.07 | — | — | ||||||||
Adjusted EBITDA | $ | 276.0 | $ | 288.0 | — | — | ||||||||
Adjusted EBITDA growth rate | 6.3 | % | 11.0 | % | — | — | ||||||||
Adjusted FFO | $ | 194.3 | $ | 206.3 | — | — | ||||||||
Adjusted FFO per diluted share | $ | 2.67 | $ | 2.84 | — | — | ||||||||
Adjusted FFO per diluted share growth rate | 6.8 | % | 13.6 | % | — | — | ||||||||
This 2016 outlook is based, in part, on the following estimates and assumptions: | ||||||||||||||
U.S. GDP growth rate | 1.5 | % | 2.0 | % | — | — | ||||||||
U.S. Hotel Industry RevPAR growth rate | 3.0 | % | 5.0 | % | — | — | ||||||||
Urban Markets RevPAR growth rate | 1.0 | % | 3.0 | % | — | — | ||||||||
Same-Property RevPAR | $ | 211 | $ | 215 | — | — | ||||||||
Same-Property RevPAR growth rate | 2.0 | % | 4.0 | % | — | — | ||||||||
Same-Property Room Revenue growth rate | 2.7 | % | 4.7 | % | — | — | ||||||||
Same-Property EBITDA | $ | 301.0 | $ | 313.0 | — | — | ||||||||
Same-Property EBITDA growth rate | 1.9 | % | 6.0 | % | — | — | ||||||||
Same-Property EBITDA Margin | 33.6 | % | 34.1 | % | — | — | ||||||||
Same-Property EBITDA Margin growth rate | 25 bps | 75 bps | — | — | ||||||||||
Corporate cash general and administrative expenses | $ | 20.3 | $ | 20.3 | — | — | ||||||||
Corporate non-cash general and administrative expenses | $ | 8.4 | $ | 8.4 | — | — | ||||||||
Total capital investments related to renovations, capital maintenance and return on investment projects | $ | 100.0 | $ | 110.0 | — | — | ||||||||
Weighted-average fully diluted shares and units | 72.7 | 72.7 | — | — | ||||||||||
Second Quarter 2016 Outlook | ||||||||
Low | High | |||||||
($ and shares/units in millions, except per share and RevPAR data) | ||||||||
Same-Property RevPAR | $ | 221 | $ | 226 | ||||
Same-Property RevPAR growth rate | 1.0 | % | 3.5 | % | ||||
Same-Property Room Revenue growth rate | 1.5 | % | 4.1 | % | ||||
Same-Property EBITDA | $ | 81.5 | $ | 85.0 | ||||
Same-Property EBITDA growth rate | (2.6%) | 1.6 | % | |||||
Same-Property EBITDA Margin | 35.5 | % | 36.0 | % | ||||
Same-Property EBITDA Margin growth rate | (50 bps) | 0 bps | ||||||
Adjusted EBITDA | $ | 74.5 | $ | 78.0 | ||||
Adjusted EBITDA growth rate | 0.7 | % | 5.4 | % | ||||
Adjusted FFO | $ | 53.5 | $ | 57.0 | ||||
Adjusted FFO per diluted share | $ | 0.74 | $ | 0.78 | ||||
Adjusted FFO per diluted share growth rate | 2.8 | % | 8.3 | % | ||||
Weighted-average fully diluted shares and units | 72.7 | 72.7 |
Pebblebrook Hotel Trust | |||||||
Consolidated Balance Sheets | |||||||
($ in thousands, except for per share data) | |||||||
March 31, 2016 | December 31, 2015 | ||||||
(Unaudited) | |||||||
ASSETS | |||||||
Assets: | |||||||
Investment in hotel properties, net | $ | 2,684,285 | $ | 2,673,584 | |||
Investment in joint venture | 243,283 | 248,794 | |||||
Ground lease asset, net | 30,070 | 30,218 | |||||
Cash and cash equivalents | 28,282 | 26,345 | |||||
Restricted cash | 10,010 | 9,453 | |||||
Hotel receivables (net of allowance for doubtful accounts of $324 and $243, respectively) | 31,403 | 25,062 | |||||
Prepaid expenses and other assets | 44,680 | 45,015 | |||||
Total assets | $ | 3,072,013 | $ | 3,058,471 | |||
LIABILITIES AND EQUITY | |||||||
Liabilities: | |||||||
Senior unsecured revolving credit facility | $ | 180,000 | $ | 165,000 | |||
Term loans, net of unamortized deferred financing costs | 671,201 | 521,883 | |||||
Senior unsecured notes, net of unamortized deferred financing costs | 99,409 | 99,392 | |||||
Mortgage debt, net of unamortized loan premiums and deferred financing costs | 316,967 | 319,320 | |||||
Accounts payable and accrued expenses | 156,739 | 141,897 | |||||
Advance deposits | 18,758 | 17,726 | |||||
Accrued interest | 4,265 | 2,550 | |||||
Distribution payable | 32,367 | 29,869 | |||||
Total liabilities | 1,479,706 | 1,297,637 | |||||
Commitments and contingencies | |||||||
Equity: | |||||||
Preferred shares of beneficial interest, $0.01 par value (liquidation preference $210,000 at March 31, 2016 and $350,000 at December 31, 2015), 100,000,000 shares authorized; 8,400,000 shares issued and outstanding at March 31, 2016 and 14,000,000 shares issued and outstanding at December 31, 2015 | 84 | 140 | |||||
Common shares of beneficial interest, $0.01 par value, 500,000,000 shares authorized; 71,922,904 issued and outstanding at March 31, 2016 and 71,735,129 issued and outstanding at December 31, 2015 | 719 | 717 | |||||
Additional paid-in capital | 1,731,920 | 1,868,047 | |||||
Accumulated other comprehensive income (loss) | (16,234 | ) | (4,750 | ) | |||
Distributions in excess of retained earnings | (126,871 | ) | (105,765 | ) | |||
Total shareholders’ equity | 1,589,618 | 1,758,389 | |||||
Non-controlling interests | 2,689 | 2,445 | |||||
Total equity | 1,592,307 | 1,760,834 | |||||
Total liabilities and equity | $ | 3,072,013 | $ | 3,058,471 |
Pebblebrook Hotel Trust | |||||||
Consolidated Statement of Operations | |||||||
($ in thousands, except for per share data) | |||||||
(Unaudited) | |||||||
Three months ended March 31, | |||||||
2016 | 2015 | ||||||
Revenues: | |||||||
Room | $ | 131,404 | $ | 108,834 | |||
Food and beverage | 50,696 | 43,238 | |||||
Other operating | 14,145 | 11,363 | |||||
Total revenues | $ | 196,245 | $ | 163,435 | |||
Expenses: | |||||||
Hotel operating expenses: | |||||||
Room | $ | 32,225 | $ | 27,983 | |||
Food and beverage | 34,037 | 29,393 | |||||
Other direct and indirect | 55,648 | 49,836 | |||||
Total hotel operating expenses | 121,910 | 107,212 | |||||
Depreciation and amortization | 25,061 | 21,325 | |||||
Real estate taxes, personal property taxes, property insurance, and ground rent | 12,465 | 11,280 | |||||
General and administrative | 6,796 | 7,572 | |||||
Hotel acquisition and disposition costs | 6 | 131 | |||||
Total operating expenses | 166,238 | 147,520 | |||||
Operating income (loss) | 30,007 | 15,915 | |||||
Interest income | 625 | 635 | |||||
Interest expense | (10,801 | ) | (8,321 | ) | |||
Other | (1,771 | ) | — | ||||
Equity in earnings (loss) of joint venture | (4,915 | ) | (4,448 | ) | |||
Income (loss) before income taxes | 13,145 | 3,781 | |||||
Income tax (expense) benefit | 3,492 | 3,389 | |||||
Net income (loss) | 16,637 | 7,170 | |||||
Net income (loss) attributable to non-controlling interests | 58 | 27 | |||||
Net income (loss) attributable to the Company | 16,579 | 7,143 | |||||
Distributions to preferred shareholders | (5,844 | ) | (6,488 | ) | |||
Issuance costs of redeemed preferred shares | (4,169 | ) | — | ||||
Net income (loss) attributable to common shareholders | $ | 6,566 | $ | 655 | |||
Net income (loss) per share available to common shareholders, basic | $ | 0.09 | $ | 0.01 | |||
Net income (loss) per share available to common shareholders, diluted | $ | 0.09 | $ | 0.01 | |||
Weighted-average number of common shares, basic | 71,836,815 | 71,673,669 | |||||
Weighted-average number of common shares, diluted | 72,311,081 | 72,446,229 |
Pebblebrook Hotel Trust | |||||||
Reconciliation of Net Income (Loss) to FFO and Adjusted FFO | |||||||
($ in thousands, except per share data) | |||||||
(Unaudited) | |||||||
Three months ended March 31, | |||||||
2016 | 2015 | ||||||
Net income (loss) | $ | 16,637 | $ | 7,170 | |||
Adjustments: | |||||||
Depreciation and amortization | 25,002 | 21,262 | |||||
Depreciation and amortization from joint venture | 2,243 | 2,158 | |||||
FFO | $ | 43,882 | $ | 30,590 | |||
Distribution to preferred shareholders | $ | (5,844 | ) | $ | (6,488 | ) | |
Issuance costs of redeemed preferred shares | (4,169 | ) | — | ||||
FFO available to common share and unit holders | $ | 33,869 | $ | 24,102 | |||
Hotel acquisition and disposition costs | 6 | 131 | |||||
Non-cash ground rent | 587 | 595 | |||||
Amortization of Class A LTIP units | — | 2 | |||||
Management/franchise contract transition costs | 66 | (57 | ) | ||||
Interest expense adjustment for acquired liabilities | (246 | ) | (830 | ) | |||
Capital lease adjustment | 130 | 125 | |||||
Non-cash amortization of acquired intangibles | 244 | 300 | |||||
Issuance costs of redeemed preferred shares | 4,169 | — | |||||
Other | 1,771 | — | |||||
Adjusted FFO available to common share and unit holders | $ | 40,596 | $ | 24,368 | |||
FFO per common share - basic | $ | 0.47 | $ | 0.34 | |||
FFO per common share - diluted | $ | 0.47 | $ | 0.33 | |||
Adjusted FFO per common share - basic | $ | 0.56 | $ | 0.34 | |||
Adjusted FFO per common share - diluted | $ | 0.56 | $ | 0.34 | |||
Weighted-average number of basic common shares and units | 72,073,166 | 71,910,020 | |||||
Weighted-average number of fully diluted common shares and units | 72,547,432 | 72,682,580 | |||||
To supplement the Company’s consolidated financial statements presented in accordance with U.S. generally accepted accounting principles ("GAAP"), this press release includes certain non-GAAP financial measures as defined under Securities and Exchange Commission (SEC) Rules. These measures are not in accordance with, or an alternative to, measures prepared in accordance with GAAP and may be different from similarly titled non-GAAP measures used by other companies. In addition, these non-GAAP measures are not based on any comprehensive set of accounting rules or principles. Non-GAAP measures have limitations in that they do not reflect all of the amounts associated with the Company’s results of operations determined in accordance with GAAP. Funds from Operations (“FFO”) - FFO represents net income (computed in accordance with GAAP), plus real estate-related depreciation and amortization and after adjustments for unconsolidated partnerships. The Company considers FFO a useful measure of performance for an equity REIT because it facilitates an understanding of the Company's operating performance without giving effect to real estate depreciation and amortization, which assume that the value of real estate assets diminishes predictably over time. Since real estate values have historically risen or fallen with market conditions, the Company believes that FFO provides a meaningful indication of its performance. The Company also considers FFO an appropriate performance measure given its wide use by investors and analysts. The Company computes FFO in accordance with standards established by the Board of Governors of NAREIT in its March 1995 White Paper (as amended in November 1999 and April 2002), which may differ from the methodology for calculating FFO utilized by other equity REITs and, accordingly, may not be comparable to that of other REITs. Further, FFO does not represent amounts available for management’s discretionary use because of needed capital replacement or expansion, debt service obligations or other commitments and uncertainties, nor is it indicative of funds available to fund the Company’s cash needs, including its ability to make distributions. The Company presents FFO per diluted share calculations that are based on the outstanding dilutive common shares plus the outstanding Operating Partnership units for the periods presented. The Company also evaluates its performance by reviewing Adjusted FFO because it believes that adjusting FFO to exclude certain recurring and non-recurring items described below provides useful supplemental information regarding the Company's ongoing operating performance and that the presentation of Adjusted FFO, when combined with the primary GAAP presentation of net income (loss), more completely describes the Company's operating performance. The Company adjusts FFO for the following items, which may occur in any period, and refers to these measures as Adjusted FFO: - Hotel acquisition and disposition costs: The Company excludes acquisition and disposition transaction costs expensed during the period because it believes that including these costs in FFO does not reflect the underlying financial performance of the Company and its hotels. - Non-cash ground rent: The Company excludes the non-cash ground rent expense, which is primarily made up of the straight-line rent impact from a ground lease. - Amortization of Class A LTIP units: The Company excludes the non-cash amortization of LTIP Units expensed during the period. - Management/franchise contract transition costs: The Company excludes one-time management and/or franchise contract transition costs expensed during the period because it believes that including these costs in FFO does not reflect the underlying financial performance of the Company and its hotels. - Interest expense adjustment for acquired liabilities: The Company excludes interest expense adjustment for acquired liabilities assumed in connection with acquisitions, because it believes that including these non-cash adjustments in FFO does not reflect the underlying financial performance of the Company. - Capital lease adjustment: The Company excludes the effect of non-cash interest expense from capital leases because it believes that including these non-cash adjustments in FFO does not reflect the underlying financial performance of the Company. - Non-cash amortization of acquired intangibles: The Company excludes the non-cash amortization of acquired intangibles, which includes but is not limited to the amortization of favorable and unfavorable leases and above/below market real estate tax reduction agreements because it believes that including these non-cash adjustments in FFO does not reflect the underlying financial performance of the Company. - Issuance costs of redeemed preferred shares: The Company excludes issuance costs of redeemed preferred shares during the period because it believes that including these adjustments in FFO does not reflect the underlying financial performance of the Company and its hotels. - Other: The Company excludes the ineffective portion of the change in fair value of the hedging instruments during the period because it believes that including these non-cash adjustments in FFO does not reflect the underlying financial performance of the Company and its hotels. The Company’s presentation of FFO in accordance with the NAREIT White Paper, and as adjusted by the Company, should not be considered as an alternative to net income (computed in accordance with GAAP) as an indicator of the Company’s financial performance or to cash flow from operating activities (computed in accordance with GAAP) as an indicator of its liquidity. | ||||||||
Pebblebrook Hotel Trust | ||||||||
Reconciliation of Net Income (Loss) to EBITDA and Adjusted EBITDA | ||||||||
($ in thousands) | ||||||||
(Unaudited) | ||||||||
Three months ended March 31, | ||||||||
2016 | 2015 | |||||||
Net income (loss) | $ | 16,637 | $ | 7,170 | ||||
Adjustments: | ||||||||
Interest expense | 10,801 | 8,321 | ||||||
Interest expense from joint venture | 2,278 | 2,256 | ||||||
Income tax expense (benefit) | (3,492 | ) | (3,389 | ) | ||||
Depreciation and amortization | 25,061 | 21,325 | ||||||
Depreciation and amortization from joint venture | 2,243 | 2,158 | ||||||
EBITDA | $ | 53,528 | $ | 37,841 | ||||
Hotel acquisition and disposition costs | 6 | 131 | ||||||
Non-cash ground rent | 587 | 595 | ||||||
Amortization of Class A LTIP units | — | 2 | ||||||
Management/franchise contract transition costs | 66 | (57 | ) | |||||
Non-cash amortization of acquired intangibles | 244 | 300 | ||||||
Other | 1,771 | — | ||||||
Adjusted EBITDA | $ | 56,202 | $ | 38,812 | ||||
To supplement the Company’s consolidated financial statements presented in accordance with U.S. generally accepted accounting principles ("GAAP"), this press release includes certain non-GAAP financial measures as defined under Securities and Exchange Commission (SEC) Rules. These measures are not in accordance with, or an alternative to, measures prepared in accordance with GAAP and may be different from similarly titled non-GAAP measures used by other companies. In addition, these non-GAAP measures are not based on any comprehensive set of accounting rules or principles. Non-GAAP measures have limitations in that they do not reflect all of the amounts associated with the Company’s results of operations determined in accordance with GAAP. Earnings before Interest, Taxes, and Depreciation and Amortization ("EBITDA") - The Company believes that EBITDA provides investors a useful financial measure to evaluate its operating performance, excluding the impact of our capital structure (primarily interest expense) and our asset base (primarily depreciation and amortization). The Company also evaluates its performance by reviewing Adjusted EBITDA because it believes that adjusting EBITDA to exclude certain recurring and non-recurring items described below provides useful supplemental information regarding the Company's ongoing operating performance and that the presentation of Adjusted EBITDA, when combined with the primary GAAP presentation of net income (loss), more completely describes the Company's operating performance. The Company adjusts EBITDA for the following items, which may occur in any period, and refers to these measures as Adjusted EBITDA: - Hotel acquisition and disposition costs: The Company excludes acquisition and disposition transaction costs expensed during the period because it believes that including these costs in EBITDA does not reflect the underlying financial performance of the Company and its hotels. - Non-cash ground rent: The Company excludes the non-cash ground rent expense, which is primarily made up of the straight-line rent impact from a ground lease. - Amortization of Class A LTIP units: The Company excludes the non-cash amortization of LTIP Units expensed during the period. - Management/franchise contract transition costs: The Company excludes one-time management and/or franchise contract transition costs expensed during the period because it believes that including these costs in EBITDA does not reflect the underlying financial performance of the Company and its hotels. - Non-cash amortization of acquired intangibles: The Company excludes the non-cash amortization of acquired intangibles, which includes but is not limited to the amortization of favorable and unfavorable leases and above/below market real estate tax reduction agreements because it believes that including these non-cash adjustments in EBITDA does not reflect the underlying financial performance of the Company. - Other: The Company excludes the ineffective portion of the change in fair value of the hedging instruments during the period because it believes that including these non-cash adjustments in EBITDA does not reflect the underlying financial performance of the Company and its hotels. The Company’s presentation of EBITDA, and as adjusted by the Company, should not be considered as an alternative to net income (computed in accordance with GAAP) as an indicator of the Company’s financial performance or to cash flow from operating activities (computed in accordance with GAAP) as an indicator of its liquidity. | ||||||||
Pebblebrook Hotel Trust | ||||||||
Manhattan Collection Statements of Operations | ||||||||
(Reflects the Company's 49% ownership interest in the Manhattan Collection) | ||||||||
($ in thousands) | ||||||||
(Unaudited) | ||||||||
Three months ended March 31, | ||||||||
2016 | 2015 | |||||||
Revenues: | ||||||||
Hotel operating revenues: | ||||||||
Room | $ | 12,895 | $ | 12,655 | ||||
Food and beverage | 1,769 | 1,886 | ||||||
Lease revenue | 401 | 405 | ||||||
Other operating | 214 | 254 | ||||||
Total revenues | 15,279 | 15,200 | ||||||
Expenses: | ||||||||
Total hotel expenses | 15,650 | 15,194 | ||||||
Depreciation and amortization | 2,243 | 2,158 | ||||||
Total operating expenses | 17,893 | 17,352 | ||||||
Operating income (loss) | (2,614 | ) | (2,152 | ) | ||||
Interest income | — | — | ||||||
Interest expense | (2,278 | ) | (2,256 | ) | ||||
Other | (23 | ) | (40 | ) | ||||
Equity in earnings of joint venture | $ | (4,915 | ) | $ | (4,448 | ) | ||
Debt: | Fixed Interest Rate | Loan Amount | ||||||
Mortgage(1) | 3.61% | $ | 225,400 | |||||
Cash and cash equivalents | (6,869 | ) | ||||||
Net Debt | 218,531 | |||||||
Restricted cash | (5,982 | ) | ||||||
Net Debt less restricted cash | $ | 212,549 | ||||||
(1) Does not include the Company's pro rata interest of the $50.0 million of preferred capital the Company provided to the joint venture, in which the Company has a 49% ownership interest. | ||||||||
Notes: | ||||||||
These operating results reflect the Company's 49% ownership interest in the Manhattan Collection. The Manhattan Collection consists of the following six hotels: Manhattan NYC, Fifty NYC, Dumont NYC, Shelburne NYC, Gardens NYC and The Benjamin. The operating results for the Manhattan Collection only include 49% of the results for the six properties to reflect the Company's 49% ownership interest in the hotels. Any differences are a result of rounding. The information above has not been audited and is presented only for comparison purposes. | ||||||||
Pebblebrook Hotel Trust | ||||||||
Same-Property Statistical Data - Entire Portfolio | ||||||||
(Unaudited) | ||||||||
Three months ended March 31, | ||||||||
2016 | 2015 | |||||||
Total Portfolio | ||||||||
Same-Property Occupancy | 82.6 | % | 78.8 | % | ||||
Increase/(Decrease) | 4.8 | % | ||||||
Same-Property ADR | $ | 236.23 | $ | 229.09 | ||||
Increase/(Decrease) | 3.1 | % | ||||||
Same-Property RevPAR | $ | 195.01 | $ | 180.50 | ||||
Increase/(Decrease) | 8.0 | % | ||||||
Notes: | ||||||||
This schedule of hotel results for the three months ended March 31 includes information from all of the hotels the Company owned, or had an ownership interest in, as of March 31, 2016, except Hotel Vintage Portland in both 2016 and 2015 because it was closed during the first quarter of 2015 for renovation and Hotel Zeppelin San Francisco in both 2016 and 2015 because it was closed during the first quarter of 2016 for renovation. Results for the Manhattan Collection reflect the Company's 49% ownership interest. These hotel results for the respective periods may include information reflecting operational performance prior to the Company's ownership of the hotels. Any differences are a result of rounding. The information above has not been audited and is presented only for comparison purposes. | ||||||||
Pebblebrook Hotel Trust | ||||||||
Same-Property Statistical Data - Wholly Owned | ||||||||
(Unaudited) | ||||||||
Three months ended March 31, | ||||||||
2016 | 2015 | |||||||
Total Portfolio | ||||||||
Same-Property Occupancy | 82.2 | % | 78.5 | % | ||||
Increase/(Decrease) | 4.6 | % | ||||||
Same-Property ADR | $ | 242.28 | $ | 232.79 | ||||
Increase/(Decrease) | 4.1 | % | ||||||
Same-Property RevPAR | $ | 199.08 | $ | 182.84 | ||||
Increase/(Decrease) | 8.9 | % | ||||||
Notes: | ||||||||
This schedule of hotel results for the three months ended March 31 includes information from all of the hotels the Company owned, or had an ownership interest in, as of March 31, 2016, except Hotel Vintage Portland in both 2016 and 2015 because it was closed during the first quarter of 2015 for renovation and Hotel Zeppelin San Francisco in both 2016 and 2015 because it was closed during the first quarter of 2016 for renovation. These hotel results do not include information for the six hotels that comprise the Manhattan Collection. These hotel results for the respective periods may include information reflecting operational performance prior to the Company's ownership of the hotels. Any differences are a result of rounding. The information above has not been audited and is presented only for comparison purposes. | ||||||||
Pebblebrook Hotel Trust | ||||||||
Same-Property Statistical Data - Manhattan Collection | ||||||||
(Unaudited) | ||||||||
Three months ended March 31, | ||||||||
2016 | 2015 | |||||||
Total Portfolio | ||||||||
Same-Property Occupancy | 85.6 | % | 80.8 | % | ||||
Increase/(Decrease) | 5.9% | |||||||
Same-Property ADR | $ | 188.99 | $ | 199.80 | ||||
Increase/(Decrease) | (5.4%) | |||||||
Same-Property RevPAR | $ | 161.84 | $ | 161.48 | ||||
Increase/(Decrease) | 0.2% | |||||||
Notes: | ||||||||
This schedule of hotel results for the three months ended March 31 includes only information for the six hotels that comprise the Manhattan Collection. Any differences are a result of rounding. The information above has not been audited and is presented only for comparison purposes. | ||||||||
Pebblebrook Hotel Trust | ||
Same Property Statistical Data - by Market | ||
(Unaudited) | ||
Three months ended March 31, | ||
2016 | ||
RevPAR Variance: | ||
Los Angeles | 21.1% | |
San Francisco | 19.5% | |
San Diego | 7.1% | |
Portland | 3.3% | |
Seattle | 1.2% | |
New York | 0.2% | |
Other | 0.0% | |
Boston | (3.1%) | |
Washington, DC | (4.5%) | |
Miami | (5.3%) | |
West Coast | 15.3% | |
East Coast | (1.2%) | |
Notes: | ||
This schedule of hotel results for the three months ended March 31 includes information from all of the hotels the Company owned, or had an ownership interest in, as of March 31, 2016, except Hotel Vintage Portland in both 2016 and 2015 because it was closed during the first quarter of 2015 for renovation and Hotel Zeppelin San Francisco in both 2016 and 2015 because it was closed during the first quarter of 2016 for renovation. Other includes Philadelphia, PA, Nashville, TN, Atlanta Buckhead, GA, Naples, FL and Minneapolis, MN. Results for the Manhattan Collection reflect the Company's 49% ownership interest. These hotel results for the respective periods may include information reflecting operational performance prior to the Company's ownership of the hotels. Any differences are a result of rounding. The information above has not been audited and is presented only for comparison purposes. | ||
Pebblebrook Hotel Trust | ||||||||
Hotel Operational Data | ||||||||
Schedule of Same-Property Results - Entire Portfolio | ||||||||
($ in thousands) | ||||||||
(Unaudited) | ||||||||
Three months ended March 31, | ||||||||
2016 | 2015 | |||||||
Same-Property Revenues: | ||||||||
Rooms | $ | 142,013 | $ | 129,193 | ||||
Food and beverage | 51,479 | 51,734 | ||||||
Other | 14,693 | 14,079 | ||||||
Total hotel revenues | 208,185 | 195,006 | ||||||
Same-Property Expenses: | ||||||||
Rooms | $ | 37,971 | $ | 34,624 | ||||
Food and beverage | 34,624 | 34,545 | ||||||
Other direct | 3,855 | 4,212 | ||||||
General and administrative | 17,116 | 16,130 | ||||||
Information and telecommunication systems | 3,141 | 3,001 | ||||||
Sales and marketing | 16,820 | 16,237 | ||||||
Management fees | 5,853 | 5,837 | ||||||
Property operations and maintenance | 6,638 | 6,547 | ||||||
Energy and utilities | 5,006 | 5,536 | ||||||
Property taxes | 10,118 | 9,179 | ||||||
Other fixed expenses | 5,057 | 5,336 | ||||||
Total hotel expenses | 146,199 | 141,184 | ||||||
Same-Property EBITDA | $ | 61,986 | $ | 53,822 | ||||
Same-Property EBITDA Margin | 29.8 | % | 27.6 | % | ||||
Notes: | ||||||||
This schedule of hotel results for the three months ended March 31 includes information from all of the hotels the Company owned, or had an ownership interest in, as of March 31, 2016, except Hotel Vintage Portland in both 2016 and 2015 because it was closed during the first quarter of 2015 for renovation and Hotel Zeppelin San Francisco in both 2016 and 2015 because it was closed during the first quarter of 2016 for renovation. Results for the Manhattan Collection reflect the Company's 49% ownership interest. These hotel results for the respective periods may include information reflecting operational performance prior to the Company's ownership of the hotels. Any differences are a result of rounding. The information above has not been audited and is presented only for comparison purposes. | ||||||||
Pebblebrook Hotel Trust | ||||||||
Hotel Operational Data | ||||||||
Schedule of Same-Property Results - Wholly Owned | ||||||||
($ in thousands) | ||||||||
(Unaudited) | ||||||||
Three months ended March 31, | ||||||||
2016 | 2015 | |||||||
Same-Property Revenues: | ||||||||
Rooms | $ | 129,117 | $ | 116,538 | ||||
Food and beverage | 49,710 | 49,849 | ||||||
Other | 14,080 | 13,419 | ||||||
Total hotel revenues | 192,907 | 179,806 | ||||||
Same-Property Expenses: | ||||||||
Rooms | $ | 31,496 | $ | 28,819 | ||||
Food and beverage | 33,194 | 33,026 | ||||||
Other direct | 3,811 | 4,162 | ||||||
General and administrative | 15,317 | 14,447 | ||||||
Information and telecommunication systems | 2,711 | 2,580 | ||||||
Sales and marketing | 15,536 | 14,776 | ||||||
Management fees | 5,432 | 5,416 | ||||||
Property operations and maintenance | 5,686 | 5,619 | ||||||
Energy and utilities | 4,461 | 4,844 | ||||||
Property taxes | 7,965 | 7,084 | ||||||
Other fixed expenses | 4,941 | 5,217 | ||||||
Total hotel expenses | 130,550 | 125,990 | ||||||
Same-Property EBITDA | $ | 62,357 | $ | 53,816 | ||||
Same-Property EBITDA Margin | 32.3 | % | 29.9 | % | ||||
Notes: | ||||||||
This schedule of hotel results for the three months ended March 31 includes information from all of the hotels the Company owned, or had an ownership interest in, as of March 31, 2016, except Hotel Vintage Portland in both 2016 and 2015 because it was closed during the first quarter of 2015 for renovation and Hotel Zeppelin San Francisco in both 2016 and 2015 because it was closed during the first quarter of 2016 for renovation. These hotel results do not include information for the six hotels that comprise the Manhattan Collection. These hotel results for the respective periods may include information reflecting operational performance prior to the Company's ownership of the hotels. Any differences are a result of rounding. The information above has not been audited and is presented only for comparison purposes. | ||||||||
Pebblebrook Hotel Trust | ||||||||
Hotel Operational Data | ||||||||
Schedule of Same-Property Results - Manhattan Collection | ||||||||
($ in thousands) | ||||||||
(Unaudited) | ||||||||
Three months ended March 31, | ||||||||
2016 | 2015 | |||||||
Same-Property Revenues: | ||||||||
Rooms | $ | 12,895 | $ | 12,655 | ||||
Food and beverage | 1,769 | 1,886 | ||||||
Lease revenue | 401 | 405 | ||||||
Other | 214 | 254 | ||||||
Total hotel revenues | 15,279 | 15,200 | ||||||
Same-Property Expenses: | ||||||||
Rooms | $ | 6,474 | $ | 5,805 | ||||
Food and beverage | 1,430 | 1,519 | ||||||
Other direct | 45 | 50 | ||||||
General and administrative | 1,798 | 1,683 | ||||||
Information and telecommunication systems | 430 | 421 | ||||||
Sales and marketing | 1,285 | 1,461 | ||||||
Management fees | 421 | 421 | ||||||
Property operations and maintenance | 953 | 928 | ||||||
Energy and utilities | 545 | 692 | ||||||
Property taxes | 2,153 | 2,095 | ||||||
Other fixed expenses | 116 | 119 | ||||||
Total hotel expenses | 15,650 | 15,194 | ||||||
Same-Property EBITDA | $ | (371 | ) | $ | 6 | |||
Same-Property EBITDA Margin | (2.4%) | 0.0% | ||||||
Notes: | ||||||||
This schedule of hotel results for the three months ended March 31 includes only information for the six hotels that comprise the Manhattan Collection. Any differences are a result of rounding. The information above has not been audited and is presented only for comparison purposes. | ||||||||
Pebblebrook Hotel Trust | ||||||||
Same-Property Inclusion Reference Table | ||||||||
Hotels | Q1 | Q2 | Q3 | Q4 | ||||
DoubleTree by Hilton Hotel Bethesda-Washington DC | X | X | X | X | ||||
Sir Francis Drake | X | X | X | X | ||||
InterContinental Buckhead Atlanta | X | X | X | X | ||||
Hotel Monaco Washington DC | X | X | X | X | ||||
The Grand Hotel Minneapolis | X | X | X | X | ||||
Skamania Lodge | X | X | X | X | ||||
Le Méridien Delfina Santa Monica | X | X | X | X | ||||
Sofitel Philadelphia | X | X | X | X | ||||
Argonaut Hotel | X | X | X | X | ||||
The Westin San Diego Gaslamp Quarter | X | X | X | X | ||||
Hotel Monaco Seattle | X | X | X | X | ||||
Mondrian Los Angeles | X | X | X | X | ||||
Viceroy Miami | X | X | X | X | ||||
W Boston | X | X | X | X | ||||
Manhattan Collection | X | X | X | X | ||||
Hotel Zetta San Francisco | X | X | X | X | ||||
Hotel Vintage Seattle | X | X | X | X | ||||
Hotel Vintage Portland | X | X | X | |||||
W Los Angeles - West Beverly Hills | X | X | X | X | ||||
Hotel Zelos San Francisco | X | X | X | X | ||||
Embassy Suites San Diego Bay - Downtown | X | X | X | X | ||||
The Redbury Hollywood | X | X | X | X | ||||
Hotel Modera | X | X | X | X | ||||
Hotel Zephyr Fisherman's Wharf | X | X | X | X | ||||
Hotel Zeppelin San Francisco | X | X | ||||||
The Nines, a Luxury Collection Hotel, Portland | X | X | X | X | ||||
The Westin Colonnade, Coral Gables | X | X | X | X | ||||
Hotel Palomar Los Angeles Beverly Hills | X | X | X | X | ||||
Union Station Hotel Nashville, Autograph Collection | X | X | X | X | ||||
Revere Hotel Boston Common | X | X | X | X | ||||
LaPlaya Beach Resort & Club | X | X | X | X | ||||
The Tuscan Fisherman's Wharf, a Best Western Plus Hotel | X | X | X | X | ||||
Notes: |
A property marked with an "X" in a specific quarter denotes that the same-property operating results of that property are included in the Same-Property Statistical Data and in the Schedule of Same-Property Results. The Company’s first quarter Same-Property RevPAR, RevPAR Growth, ADR, Occupancy, Revenues, Expenses, EBITDA and EBITDA Margin include all of the hotels the Company owned, or had an ownership interest in, as of March 31, 2016, except Hotel Vintage Portland in both 2016 and 2015 because it was closed during the first quarter of 2015 for renovation and Hotel Zeppelin San Francisco in both 2016 and 2015 because it was closed during the first quarter of 2016 for renovation. Results for the Manhattan Collection reflect the Company's 49% ownership interest. Operating statistics and financial results may include periods prior to the Company’s ownership of the hotels. The Company's estimates and assumptions for Same-Property RevPAR, RevPAR Growth, ADR, Occupancy, Revenues, Expenses, EBITDA and EBITDA Margin for the Company's 2016 Outlook include all of the hotels the Company owned, or had an ownership interest in, as of March 31, 2016, except Hotel Vintage Portland in the first quarter because it was closed during the first quarter of 2015 for renovation and Hotel Zeppelin San Francisco in in the first quarter and fourth quarter because it was closed during the first quarter of 2016 for renovation and during the fourth quarter of 2015 for renovation. The operating statistics and financial results in this press release may include periods prior to the Company's ownership of the hotels. The hotel operating estimates and assumptions for the Manhattan Collection included in the Company's 2016 Outlook only reflect the Company's 49% ownership interest in those hotels. | |||||||||
Pebblebrook Hotel Trust | |||||||||||||||||||||
Historical Operating Data - Entire Portfolio | |||||||||||||||||||||
($ in millions, except ADR and RevPAR) | |||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||
Historical Operating Data: | |||||||||||||||||||||
First Quarter 2015 | Second Quarter 2015 | Third Quarter 2015 | Fourth Quarter 2015 | Full Year 2015 | |||||||||||||||||
Occupancy | 79 | % | 87 | % | 88 | % | 82 | % | 84 | % | |||||||||||
ADR | $ | 229 | $ | 251 | $ | 261 | $ | 242 | $ | 246 | |||||||||||
RevPAR | $ | 180 | $ | 218 | $ | 230 | $ | 197 | $ | 207 | |||||||||||
Hotel Revenues | $ | 198.8 | $ | 232.2 | $ | 239.9 | $ | 218.6 | $ | 889.5 | |||||||||||
Hotel EBITDA | $ | 54.5 | $ | 83.7 | $ | 88.6 | $ | 69.6 | $ | 296.4 | |||||||||||
Hotel EBITDA Margin | 27.4 | % | 36.0 | % | 36.9 | % | 31.9 | % | 33.3 | % | |||||||||||
First Quarter 2016 | |||||||||||||||||||||
Occupancy | 82 | % | |||||||||||||||||||
ADR | $ | 235 | |||||||||||||||||||
RevPAR | $ | 194 | |||||||||||||||||||
Hotel Revenues | $ | 211.6 | |||||||||||||||||||
Hotel EBITDA | $ | 62.4 | |||||||||||||||||||
Hotel EBITDA Margin | 29.5 | % | |||||||||||||||||||
Notes: | |||||||||||||||||||||
These historical hotel operating results include information for all of the hotels the Company owned, or had an ownership interest in, as of March 31, 2016. The hotel operating results for the Manhattan Collection only include 49% of the results for the six properties to reflect the Company's 49% ownership interest in the hotels. These historical operating results include periods prior to the Company's ownership of the hotels. The information above does not reflect the Company's corporate general and administrative expense, interest expense, property acquisition costs, depreciation and amortization, taxes and other expenses. Any differences are a result of rounding. The information above has not been audited and is presented only for comparison purposes. | |||||||||||||||||||||
Pebblebrook Hotel Trust | |||||||||||||||||||||
Historical Operating Data - Wholly Owned | |||||||||||||||||||||
($ in millions, except ADR and RevPAR) | |||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||
Historical Operating Data: | |||||||||||||||||||||
First Quarter 2015 | Second Quarter 2015 | Third Quarter 2015 | Fourth Quarter 2015 | Full Year 2015 | |||||||||||||||||
Occupancy | 79 | % | 86 | % | 88 | % | 81 | % | 83 | % | |||||||||||
ADR | $ | 233 | $ | 247 | $ | 258 | $ | 233 | $ | 243 | |||||||||||
RevPAR | $ | 183 | $ | 213 | $ | 226 | $ | 188 | $ | 203 | |||||||||||
Hotel Revenues | $ | 183.6 | $ | 208.9 | $ | 216.4 | $ | 193.5 | $ | 802.4 | |||||||||||
Hotel EBITDA | $ | 54.5 | $ | 76.0 | $ | 81.3 | $ | 60.7 | $ | 272.4 | |||||||||||
Hotel EBITDA Margin | 29.7 | % | 36.4 | % | 37.6 | % | 31.4 | % | 33.9 | % | |||||||||||
First Quarter 2016 | |||||||||||||||||||||
Occupancy | 82 | % | |||||||||||||||||||
ADR | $ | 241 | |||||||||||||||||||
RevPAR | $ | 198 | |||||||||||||||||||
Hotel Revenues | $ | 196.3 | |||||||||||||||||||
Hotel EBITDA | $ | 62.8 | |||||||||||||||||||
Hotel EBITDA Margin | 32.0 | % | |||||||||||||||||||
Notes: | |||||||||||||||||||||
These historical hotel operating results include information for all of the hotels the Company owned as of March 31, 2016, except for the Company's 49% interest in the Manhattan Collection. These historical operating results include periods prior to the Company's ownership of the hotels. The information above does not reflect the Company's corporate general and administrative expense, interest expense, property acquisition costs, depreciation and amortization, taxes and other expenses. Any differences are a result of rounding. The information above has not been audited and is presented only for comparison purposes. | |||||||||||||||||||||
Pebblebrook Hotel Trust | |||||||||||||||||||||
Historical Operating Data - Manhattan Collection | |||||||||||||||||||||
($ in millions, except ADR and RevPAR) | |||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||
Historical Operating Data: | |||||||||||||||||||||
First Quarter 2015 | Second Quarter 2015 | Third Quarter 2015 | Fourth Quarter 2015 | Full Year 2015 | |||||||||||||||||
Occupancy | 81 | % | 93 | % | 94 | % | 92 | % | 90 | % | |||||||||||
ADR | $ | 200 | $ | 279 | $ | 284 | $ | 302 | $ | 269 | |||||||||||
RevPAR | $ | 161 | $ | 260 | $ | 266 | $ | 277 | $ | 242 | |||||||||||
Hotel Revenues | $ | 15.2 | $ | 23.3 | $ | 23.5 | $ | 25.1 | $ | 87.1 | |||||||||||
Hotel EBITDA | $ | 0.0 | $ | 7.7 | $ | 7.4 | $ | 9.0 | $ | 24.0 | |||||||||||
Hotel EBITDA Margin | 0.0 | % | 33.1 | % | 31.3 | % | 35.6 | % | 27.6 | % | |||||||||||
First Quarter 2016 | |||||||||||||||||||||
Occupancy | 86 | % | |||||||||||||||||||
ADR | $ | 189 | |||||||||||||||||||
RevPAR | $ | 162 | |||||||||||||||||||
Hotel Revenues | $ | 15.3 | |||||||||||||||||||
Hotel EBITDA | ($0.4) | ||||||||||||||||||||
Hotel EBITDA Margin | (2.4%) | ||||||||||||||||||||
Notes: | |||||||||||||||||||||
These historical hotel operating results include only information for the six hotel properties that comprise the Manhattan Collection. The hotel operating results for the Manhattan Collection only include 49% of the results for the six properties to reflect the Company's 49% ownership interest in the hotels. The information above does not reflect the Company's corporate general and administrative expense, interest expense, property acquisition costs, depreciation and amortization, taxes and other expenses. Any differences are a result of rounding. The information above has not been audited and is presented only for comparison purposes. | |||||||||||||||||||||
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