-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, FG476PltJuH4K22jxUgndqZNqpVmKs1z7Ba0Xe2Y8bfkI/rd6216L8Q7wyaFxcQz A1ykcelGZ3cjXGWIVpwGrg== 0000914760-98-000204.txt : 19981118 0000914760-98-000204.hdr.sgml : 19981118 ACCESSION NUMBER: 0000914760-98-000204 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19980930 FILED AS OF DATE: 19981116 FILER: COMPANY DATA: COMPANY CONFORMED NAME: AMERIHOST PROPERTIES INC CENTRAL INDEX KEY: 0000778423 STANDARD INDUSTRIAL CLASSIFICATION: HOTELS & MOTELS [7011] IRS NUMBER: 363312434 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 000-15291 FILM NUMBER: 98750939 BUSINESS ADDRESS: STREET 1: 2400 E DEVON AVE STE 280 CITY: DES PLAINES STATE: IL ZIP: 60018 BUSINESS PHONE: 7082984500 MAIL ADDRESS: STREET 1: 2400 E DEVON AVE STREET 2: SUITE 280 CITY: DES PLAINES STATE: IL ZIP: 60018 FORMER COMPANY: FORMER CONFORMED NAME: AMERICA POP INC DATE OF NAME CHANGE: 19871111 10-Q 1 ================================================================================ SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q [x] Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended SEPTEMBER 30, 1998 OR [ ] Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Commission File No. 0-15291 AMERIHOST PROPERTIES, INC. (Exact name of Registrant as specified in its charter DELAWARE 36-3312434 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 2400 EAST DEVON AVE., SUITE 280, DES PLAINES, ILLINOIS 60018 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (847) 298-4500 Indicate by check mark whether the Registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No As of November 13, 1998, 6,128,850 shares of the Registrant's Common Stock were outstanding. ================================================================================ AMERIHOST PROPERTIES, INC. FORM 10-Q FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 1998 INDEX PART I: Financial Information Page Consolidated Balance Sheets as of September 30, 1998 and December 31, 1997 4 Consolidated Statements of Operations for the Three and Nine Months Ended September 30, 1998 and 1997 6 Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 1998 and 1997 7 Notes to Consolidated Financial Statements 9 Management's Discussion and Analysis 12 Schedule of Earnings Before Interest/Rent, Taxes and Depreciation/Amortization for the Three and Nine Months Ended September 30, 1998 and 1997 20 PART II: Other Information Item 4 - Submission of Matters to a Vote of Securities Holders21 Item 6 - Exhibits and Reports on Form 8-K 21 Signatures 21 Part I: Financial Information Item 1: Financial Statements AMERIHOST PROPERTIES, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (UNAUDITED) ================================================================================
September 30, December 31, 1998 1997 ------------- ----------- ASSETS Current assets: Cash and cash equivalents $ 5,345,982 $ 2,349,503 Accounts receivable (including $157,508 and $1,375,936 from related parties) 3,586,917 3,440,241 Notes receivable, current portion 1,380,018 1,459,986 Prepaid expenses and other current assets 224,901 209,779 Refundable income taxes 1,698,390 2,342,734 Costs and estimated earnings in excess of billings on uncompleted contracts with related parties 1,684,586 1,913,103 Total current assets 13,920,794 11,715,346 ------------ ------------ Investments in and advances to unconsolidated hotel joint ventures 5,796,209 5,319,689 ------------ ------------ Property and equipment: Land 10,678,286 10,365,676 Buildings 64,467,227 49,156,742 Furniture, fixtures and equipment 18,543,570 15,366,291 Construction in progress 859,726 3,549,408 Leasehold improvements 1,295,937 1,223,206 ------------ ------------ 95,844,746 79,661,323 Less accumulated depreciation and amortization 13,876,489 9,345,991 81,968,257 70,315,332 Notes receivable, less current portion 1,304,905 1,355,395 Deferred income taxes 3,319,000 -- Other assets, net of accumulated amortization of $4,908,179 and $4,255,609 5,902,847 3,962,336 ------------ ------------ 10,526,752 5,317,731 $112,212,012 $ 92,668,098 ============ ============
(continued) AMERIHOST PROPERTIES, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (UNAUDITED)
September 30, December 31, 1998 1997 ------------- ------------ LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable $ 3,124,484 $ 4,780,444 Bank line-of-credit 2,550,748 1,289,709 Accrued payroll and related expenses 1,588,636 1,004,265 Accrued real estate and other taxes 2,394,751 885,610 Other accrued expenses and current liabilities 789,398 843,805 Current portion of long-term debt 4,622,271 5,119,194 ------------- ------------- Total current liabilities 15,070,288 13,923,027 ------------- ------------- Long-term debt, net of current portion 61,199,557 55,116,028 ------------- ------------- Deferred income taxes -- 108,000 ------------- ------------- Deferred income 14,282,162 927,444 Commitments Minority interests 645,109 1,000,740 ------------- ------------- Shareholders' equity: Preferred stock, no par value; authorized 100,000 shares; none issued -- -- Common stock, $.005 par value; authorized 25,000,000 shares; issued and outstanding 6,177,850 shares at September 30, 1998, and 6,212,925 shares at December 31, 1997 30,889 31,065 Additional paid-in capital 17,698,091 17,860,655 Retained earnings 3,722,791 4,138,014 21,451,771 22,029,734 Less: Stock subscriptions receivable (436,875) (436,875) 21,014,896 21,592,859 $ 112,212,012 $ 92,668,098 ============= ============= See notes to consolidated financial statements
AMERIHOST PROPERTIES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
Three Months Ended September 30, Nine Months Ended September 30, 1998 1997 1998 1997 Revenue: Hotel operations: AmeriHost Inn hotels $ 10,788,132 $ 4,729,708 $22,631,705 $10,504,167 Other hotels 3,920,469 4,792,954 11,481,208 13,725,713 Development and construction 1,459,851 3,281,059 7,932,438 11,724,159 Management services 621,839 881,822 1,925,652 2,254,201 Employee leasing 2,639,266 3,751,227 8,389,197 9,887,058 ------------ ------------ ------------ ------------ 19,429,557 17,436,770 52,360,200 48,095,298 ------------ ------------ ------------ ------------ Operating costs and expenses: Hotel operations: AmeriHost Inn hotels 6,476,072 2,912,004 14,944,067 6,881,811 Other hotels 2,554,938 3,269,296 8,501,782 10,318,748 Development and construction 1,474,314 3,053,261 7,510,058 10,517,474 Management services 667,221 508,880 1,875,817 1,438,883 Employee leasing 2,552,712 3,654,811 8,176,611 9,632,149 ------------ ------------ ------------ ------------ 13,725,257 13,398,252 41,008,335 38,789,065 ------------ ------------ ------------ ------------ 5,704,300 4,038,518 11,351,865 9,306,233 Depreciation and amortization 1,196,026 1,118,695 3,993,447 3,360,619 Leasehold rents - hotels 1,548,878 387,170 2,477,094 1,451,760 Corporate general and administrative 402,905 493,603 1,133,625 1,562,802 ------------ ------------ ------------ ------------ Operating income 2,556,491 2,039,050 3,747,699 2,931,052 Other income (expense): Interest expense (1,160,534) (1,169,817) (4,719,408) (2,857,209) Interest income 133,707 212,138 392,721 552,838 Other income 30,471 20,148 129,026 56,231 Gain on sale of property -- -- 161,191 1,697,999 Contractual termination expenses -- -- -- (1,697,448) Equity in net income and losses of affiliates (38,410) 74,795 6,647 (134,618) ------------ ------------ ------------ ------------ Income (loss) before minority interests and income taxes 1,521,725 1,176,314 (282,124) 548,845 Minority interests in (income) loss of consolidated subsidiaries and partnerships (90,489) (100,935) 142,639 44,720 ------------ ------------ ------------ ------------ Income (loss) before income tax 1,431,236 1,075,379 (139,485) 593,565 Income tax expense (benefit) 587,000 441,000 (57,000) 193,000 ------------ ------------ ------------ ------------ Net income (loss) before extraordinary item 844,236 634,379 (82,485) 400,565 Extraordinary item - early extinguishment of debt, net of income tax (Note 9) -- -- (332,738) -- ------------ ------------ ------------ ------------ Net income (loss) $ 844,236 $ 634,379 $ (415,223) $ 400,565 ============ ============ ============ ============ Net income (loss) per share: Basic $ 0.14 $ 0.10 $ (0.07) $ 0.06 ============ ============ ============ ============ Diluted $ 0.13 $ 0.08 $ (0.08) $ 0.03 ============ ============ ============ ============ See notes to consolidated financial statements.
AMERIHOST PROPERTIES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOW FOR THE NINE MONTHS ENDED SEPTEMBER 30, (UNAUDITED)
1998 1997 ------------ ------------ Cash flows from operating activities: Cash received from customers $ 53,259,648 $ 49,948,241 Cash paid to suppliers and employees (44,809,729) (42,379,424) Interest received 685,895 418,438 Interest paid (4,578,698) (2,798,670) Income taxes paid (2,725,656) (960,493) Contract termination costs -- (1,642,831) ------------ ------------ Net cash provided by operating activities 1,831,460 2,585,261 ------------ ------------ Cash flows from investing activities: Purchase of property and equipment (32,915,711) (24,410,207) Purchase of investments in, and advances to, minority owned affiliates (2,306,697) (3,959,086) Distributions, and collections on advances, from affiliates 1,977,894 1,966,951 Acquisitions of partnership interests, net of cash acquired (7,779,175) -- Collections on notes receivable 130,478 112,358 Preopening and management contract costs (184,962) (358,568) Proceeds from sale of assets 64,443,899 3,390,576 ------------ ------------ Net cash provided by (used in) investing activities 23,365,726 (23,257,976) ------------ ------------ Cash flows from financing activities: Proceeds from issuance of long-term debt 26,860,036 21,812,654 Principal payments on long-term debt (49,808,945) (2,149,126) Proceeds from line of credit 22,656,804 12,411,143 Repayment on line of credit (21,395,765) (11,250,000) Decrease in minority interest (353,876) (156,808) Proceeds from exercise of common stock options -- 1,166,075 Common stock repurchase (158,961) -- ------------ ------------ Net cash (used in) provided by financing activities (22,200,707) 21,833,938 ------------ ------------ Net increase in cash and cash equivalents 2,996,479 1,161,223 Cash and cash equivalents, beginning of year 2,349,503 3,029,039 ------------ ------------ Cash and cash equivalents, end of period $ 5,345,982 $ 4,190,262 ============ ============
(continued) AMERIHOST PROPERTIES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE NINE MONTHS ENDED SEPTEMBER 30, (UNAUDITED)
1998 1997 ------------- ------------- Reconciliation of net income (loss) to net cash provided by operating activities: Net income (loss) $ (415,223) $ 400,565 Adjustments to reconcile net income (loss) to net cash provided by operating activities: Depreciation and amortization 3,993,447 3,360,619 Equity in net (income) loss of affiliates and amortization of deferred income (6,647) 134,618 Minority interests in net income (loss) of subsidiaries (142,639) (44,720) Amortization of deferred gain on sale (341,629) -- Amortization of deferred interest and loan discount 34,044 29,820 Extraordinary item - early extinguishment of debt, net of tax 332,738 -- Compensation recognized through issuance of common stock and common stock options -- 350,604 Gain on sale of investments, property and equipment (161,191) (1,697,999) Deferred income taxes (3,427,000) (50,000) Unpaid contractual termination costs -- 54,617 Changes in assets and liabilities, net of effects of acquisitions: Decrease in accounts receivable 328,033 855,681 Decrease (increase) in prepaid expenses and other current assets 46,859 (419,338) Decrease (increase) in refundable income taxes 644,344 (717,493) Decrease in costs and estimated earnings in excess of billings 228,517 623,869 Decrease (increase) in other assets 1,408,367 (884,502) Decrease in accounts payable (2,532,485) (33,509) Increase (decrease) in accrued payroll and other accrued expenses and current liabilities 1,252,495 280,774 Increase in accrued interest 106,666 24,495 Increase in deferred income 482,764 317,160 Net cash provided by operating activities $ 1,831,460 $ 2,585,261 See notes to consolidated financial statements
AMERIHOST PROPERTIES, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS THREE AND NINE MONTHS ENDED SEPTEMBER 30, 1998 AND 1997 1. BASIS OF PREPARATION: The financial statements included herein have been prepared by the Company, without audit. In the opinion of the Company, the accompanying unaudited financial statements contain all adjustments, which consist only of recurring adjustments necessary to present fairly the financial position of Amerihost Properties, Inc. and subsidiaries as of September 30, 1998 and December 31, 1997 and the results of its operations for the three and nine months ended September 30, 1998 and 1997 and cash flows for the nine months ended September 30, 1998 and 1997. The results of operations for the three and nine months ended September 30, 1998 are not necessarily indicative of the results to be expected for the full year. It is suggested that the accompanying financial statements be read in conjunction with the financial statements and the notes thereto included in the Company's 1997 Annual Report on Form 10-K. Certain reclassifications have been made to the 1997 financial statements in order to conform with the 1998 presentation. 2. PRINCIPLES OF CONSOLIDATION: The consolidated financial statements include the accounts of the Company, its wholly-owned subsidiaries, and partnerships in which the Company has a majority ownership interest. Significant intercompany accounts and transactions have been eliminated. 3. INCOME (LOSS) PER SHARE: Basic income (loss) per share of common stock is computed by dividing net income (loss) by the weighted average number of shares of common stock outstanding. Diluted income (loss) per share of common stock is computed by dividing the adjusted net income (loss) by the weighted average number of shares of common stock and dilutive common stock equivalents outstanding. The Company is a general partner in four partnerships where the limited partners have the right at certain times and under certain conditions to convert their limited partner interests into 296,850 shares of the Company's common stock. The following are the calculations of basic and diluted earnings per share:
Three Months Ended September 30, Nine Months Ended September 30, -------------------------------- ------------------------------- 1998 1997 1998 1997 ----------- ---------- ----------- ------------ Net income (loss) before extraordinary item $ 844,236 $ 634,379 $ (82,485) $ 400,565 Extraordinary item, net of tax - - (332,738) - Net income (loss) 844,236 634,379 (415,223) 400,565 Impact of convertible partnership interests (1,698) (62,076) (127,787) (191,155) ----------- ----------- ---------- ----------- $ 842,538 $ 572,303 $ (543,010) $ 209,410 =========== =========== =========== =========== Weighted average common shares outstanding 6,181,544 6,325,560 6,196,147 6,266,854 Dilutive effect of convertible partnership interests and common stock equivalents 413,049 805,691 349,767 838,296 Dilutive common shares outstanding 6,594,593 7,131,251 6,545,914 7,105,150 ========== ========== ========== =========
3. INCOME (LOSS) PER SHARE (CONTINUED):
Three Months Ended September 30, Nine Months Ended September 30, 1998 1997 1998 1997 Basic net income (loss) per share, before extraordinary item $ 0.14 $ 0.10 $ (0.02) $ 0.06 Extraordinary item, net of income tax - - (0.05) - --------- ----------- ----------- --------- Basic net income (loss) per share $ 0.14 $ 0.10 $ (0.07) 0.06 ========= =========== =========== ========== Diluted net income (loss) per share, before extraordinary item $ 0.13 $ 0.08 $ (0.03) $ 0.03 Extraordinary item, net of income tax - - (0.05) - --------- ----------- ----------- --------- Diluted net income (loss) per share $ 0.13 $ 0.08 $ (0.08) $ 0.03 ======= =========== ========== =========
4. INCOME TAXES: Deferred income taxes are provided on the differences in the bases of the Company's assets and liabilities determined for tax and financial reporting purposes. The income tax expense (benefit) for the three and nine months ended September 30, 1998 and 1997 was based on the Company's estimate of the effective tax rate expected to be applicable for the full year. A $50,000 reduction in the deferred tax asset reserve was made during the nine months ended September 30, 1997. The Company expects the effective tax rate to approximate the Federal and state statutory rates. 5. SUPPLEMENTAL CASH FLOW DATA: The following represents the supplemental schedule of noncash investing and financing activities for the nine months ended September 30: 1998 1997 Reduction of receivable in exchange for common stock $ 3,779 $ - Accrued contractual termination costs $ - $ 145,798 6. HOTEL LEASES: The Company leases 31 hotels, including the 26 hotels leased pursuant to the PMC transaction completed on June 30, 1998 (Note 8), the operations of which are included in the Company's consolidated financial statements. The five leases which were not part of the PMC transaction provide for an option to purchase the hotel. Some of the purchase prices are based upon a multiple of gross room revenues for the preceding twelve months and the others are based upon a fixed amount. At September 30, 1998, the aggregate purchase price for these five hotels was approximately $16,230,000. 7. INVESTMENTS: During the first nine months of 1998, the Company acquired the remaining ownership interests in fourteen hotel joint ventures. The following is a summary of these acquisitions: Fair value of assets acquired $37,456,299 Cash paid, net of cash acquired (7,779,175) ------------ Liabilities assumed $29,677,124 =========== In addition, the Company purchased ten hotels from entities in which the Company held a minority ownership position, for a total purchase price of $24.0 million, including the assumption of $13.1 million in mortgage debt. 8. SALE/LEASEBACK OF HOTELS: On June 30, 1998, the Company completed the sale of 26 AmeriHost Inn hotels to PMC Commercial Trust ("PMC") for $62.2 million. An additional four AmeriHost Inn hotels are under contract to sell to PMC which are expected to close within the next 60 days. Upon the sale to PMC, the Company entered into agreements to lease back the hotels for an initial term of ten years, with two five year renewal options. The lease payments are fixed at 10% of the sale price for the first three years. Thereafter, the lease payments are subject to a CPI increase with a 2% annual maximum. The Company has deferred the gain on the sale of these hotels pursuant to sale/leaseback accounting. This deferral will be recognized over the initial term of the lease as a reduction of leasehold rent expense. 9. EXTRAORDINARY ITEM: In connection with the PMC transaction (Note 8), the Company expensed deferred loan costs associated with the early extinguishment of mortgage debt on the sold hotels. ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS GENERAL The Company is engaged in the development of AmeriHost Inn hotels, its proprietary brand, and the ownership, operation and management of AmeriHost Inn hotels and other mid-price hotels. As of September 30, 1998, there were 75 AmeriHost Inn hotels open, of which 58 were wholly-owned, one was majority-owned, 13 were minority-owned, and three were managed for unrelated third parties. A total of 16 AmeriHost Inn hotels were opened during the past twelve months. The Company intends to use the AmeriHost Inn brand when expanding its hotel operations segment. All of the hotels currently under construction will be AmeriHost Inn hotels. As of September 30, 1998, six AmeriHost Inn hotels were under construction, of which five will be wholly-owned, and one will be minority-owned. Same room revenues for all AmeriHost Inn hotels (including minority owned and managed only) increased approximately 9.1% and 9.4% during the third quarter and first nine months of 1998, compared to the third quarter and first nine months of 1997, respectively, attributable to an increase of $0.20 and $0.09 in average daily rate for the third quarter and first nine months, respectively, and an 8.6% and 9.2% increase in occupancy for the three and nine month periods, respectively. These results relate to the 58 AmeriHost Inn hotels that were operating for at least thirteen full months at September 30, 1998. Revenues from hotel operations consist of the revenues from all hotels in which the Company has a 100% or majority ownership or leasehold interest ("Consolidated" hotels). Investments in other entities in which the Company has a minority ownership interest are accounted for using the equity method. As a result of the Company's focus on increasing the number of Consolidated hotels, the Company expects that revenues from the hotel operations segment will increase over time as a percentage of the Company's overall revenues. Development and construction revenues consist of one-time fees for new construction and renovation activities performed by the Company for minority-owned hotels and unrelated third parties. The Company also receives revenue from management and employee leasing services provided to minority-owned hotels and unrelated third parties. The results for the first nine months of 1998 were consistent with the Company's primary objective of increasing the number of wholly-owned or leased, Consolidated AmeriHost Inn hotels. Due to the Company's focus on developing and constructing a significant number of Consolidated AmeriHost Inn hotels during 1997 and the first nine months of 1998, as well as acquiring the remaining ownership interests in a significant number of AmeriHost Inn hotels which were previously minority-owned, the Company recognized lower revenues and profits from the development and construction of hotels for minority-owned and unrelated third parties during 1998. In addition, the Company disposed of several non-AmeriHost Inn hotels during the past twelve months, as part of the Company's plan to invest all available resources into the AmeriHost Inn hotel brand. Although this strategy has a short-term negative impact on revenues and earnings, the Company believes that the long-term benefits will be substantial. Revenues from Consolidated AmeriHost Inn hotels increased 128.1% and 115.5% to $10.8 million and $22.6 million during the third quarter and first nine months of 1998, respectively, from revenues of $4.7 million and $10.5 million during the third quarter and first nine months of 1997, due to the addition of 32 Consolidated AmeriHost Inn hotels during the past twelve months. Revenues from the hotel management and employee leasing segments decreased by 29.6% and 15.0% in total during the third quarter and first nine months of 1998, respectively, due primarily to the acquisition of the remaining ownership interest in 22 minority-owned joint venture hotels, all of which are AmeriHost Inn hotels. Revenues from Consolidated non-AmeriHost Inn hotels decreased 18.2% and 16.4% during the third quarter and first nine months of 1998, compared to 1997, as a result of the disposition of four Consolidated non-AmeriHost Inn hotels during the first nine months of 1997 and one Consolidated non-AmeriHost Inn hotel during the first nine months of 1998. Total revenues increased 11.4% and 8.9%, to $19.4 million and $52.4 million during the third quarter and first nine months of 1998, respectively, from $17.4 million and $48.1 million during the 1997 periods. The Company recorded net income of $844,236 for the third quarter of 1998, or $0.13 per diluted share, compared to net income of $634,378, or $0.08 per diluted share in 1997. For the nine months ended September 30, 1998, the Company incurred a net loss of $415,223, or $0.08 per diluted share, compared to net income of $400,565 during the first nine months of 1997, or $0.03 per diluted share. Without an extraordinary item incurred during the second quarter of 1998 in the amount of $332,738, net of income tax (due to the write off of deferred loan costs associated with the prepayment of mortgage debt), the net loss for the nine months ended September 30, 1998 would have been $82,485, or $0.03 per diluted share. The Company sold one Consolidated non-AmeriHost Inn hotel during the first nine months of 1998, and two Consolidated non-AmeriHost Inn hotels during the first nine months of 1997, resulting in a total gain, net of minority interests, of $161,191 and $1.7 million, respectively. The gains in 1997 were offset by a non-recurring charge of $1.7 million from the termination of a consulting agreement with Urban 2000 Corp. (a company owned by the Company's Chairman of the Board and a former officer/director) and the severance fees paid in connection with the departure of an officer/director. The Company uses EBITDA as a supplemental performance measure along with net income to report its operating results. EBITDA is defined as net income before extraordinary items, adjusted to eliminate the impact of (i) interest expense; (ii) interest and other income; (iii) leasehold rents for hotels, which the Company considers to be financing costs similar to interest; (iv) income tax expense (benefit), (v) depreciation and amortization; and (vi) gains or losses from property transactions. EBITDA should not be considered as an alternative to operating income (as determined in accordance with Generally Accepted Accounting Principles, "GAAP") as an indicator of the Company's operating performance or to cash flows from operating activities (as determined in accordance with GAAP) as a measure of liquidity. EBITDA, as defined by the Company is included herein due to numerous requests by investors and analysts. Management believes that investors and analysts find it to be a useful tool for measuring the Company's ability to service debt. EBITDA increased 47.0% and 74.1% to $5.2 million and $10.4 million during the three and nine months ended September 30, 1998, respectively, from $3.5 million and $6.0 million during the three and nine months ended September 30, 1997. After eliminating the impact of the non-recurring charges, EBITDA increased 47.0% and 35.5% during the three and nine months ended September 30, 1998, compared to the three and nine months ended September 30, 1997. An EBITDA schedule is included herein. On June 30, 1998, the Company completed the sale of 26 AmeriHost Inn hotels to PMC Commercial Trust ("PMC") for $62.2 million. An additional four AmeriHost Inn hotels are under contract to sell to PMC which are expected to close within the next 60 days. Upon the sale to PMC, the Company entered into agreements to lease back the hotels for an initial term of ten years, with two five year renewal options. The lease payments are fixed at 10% of the sale price for the first three years. Thereafter, the lease payments are subject to a CPI increase with a 2% annual maximum. The Company has deferred the gain on the sale of these hotels pursuant to sale/leaseback accounting. This deferral will be recognized over the initial term of the lease as a reduction of leasehold rent expense. Amerihost had an ownership interest in 86 hotels at September 30, 1998 versus 75 hotels at September 30, 1997 (excluding hotels under construction). This increased ownership was achieved primarily through the development of AmeriHost Inn hotels for the Company's own account and for minority-owned entities. These figures include a net increase of 31 Consolidated hotels, from 36 at September 30, 1997 to 67 at September 30, 1998. RESULTS OF OPERATIONS FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 1998 COMPARED TO THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 1997 Revenues increased 11.4% and 8.9% to $19.4 million and $52.4 million during the three and nine months ended September 30, 1998, respectively, from $17.4 million and $48.1 million during the three and nine months ended September 30, 1997. The increase in revenue from the Consolidated AmeriHost Inn hotels was partially offset by the decreases from the hotel management and employee leasing segments, a decrease from the hotel development and construction segment, as well as the decrease from non-AmeriHost Inn hotel operations. Hotel operations revenue increased 54.5% and 40.8% to $14.7 million and $34.1 million during the three and nine months ended September 30, 1998, respectively, from $9.5 million and $24.2 million during the three and nine months ended September 30, 1997. Revenues from Consolidated AmeriHost Inn hotels increased 128.1% and 115.5% to $10.8 million and $22.6 million during the three and nine months ended September 30, 1998, respectively, from $4.7 million and $10.5 million during the three and nine months ended September 30, 1997. These increases were attributable primarily to the addition of 32 Consolidated AmeriHost Inn hotels from October 1, 1997 through September 30, 1998, including the addition of nine newly constructed Consolidated AmeriHost Inn hotels, and the acquisition of additional ownership interest in 23 existing hotels causing them to become a Consolidated AmeriHost Inn hotels, as well as an increase in same room revenues. The increase in Consolidated AmeriHost Inn hotel revenue was offset by a 18.2% and 16.4% decrease in Consolidated other brand hotel revenue during the three and nine month periods, respectively. This decrease was the result of the sale of three non-AmeriHost Inn Consolidated hotels, and the termination of the lease for two other non-AmeriHost Inn hotels. The hotel operations segment included the operations of 67 Consolidated hotels (including 59 AmeriHost Inn hotels) comprising 4,784 rooms at September 30, 1998, compared to 36 Consolidated hotels (including 27 AmeriHost Inn hotels) comprising 2,939 rooms at September 30, 1997. After considering the Company's ownership interest in the majority-owned Consolidated hotels, this translates to 4,515 and 2,619 equivalent owned rooms as of September 30, 1998 and 1997, respectively, or an increase of 72.4%. Recently, the Company has experienced an increase in competition in certain markets, primarily from newly constructed hotels. As a result, there is increased downward pressure on occupancy levels and average daily rates. The Company believes that as the number of AmeriHost Inn hotels increases, the greater the benefits will be at all locations from marketplace recognition and repeat business. In addition, the Company typically builds new hotels in growing markets where it anticipates a certain level of additional hotel development. Hotel development revenue decreased 55.5% and 32.3% to $1.5 million and $7.9 million during the three and nine months ended September 30, 1998, respectively, from $3.3 million and $11.7 million during the three and nine months ended September 30, 1997. Hotel development revenues are directly related to the number of hotels being developed and constructed for minority-owned entities or unrelated third parties. The Company was constructing three hotels for minority-owned entities or unrelated third parties during the third quarter of 1998, compared to six hotels during the three months ended September 30, 1997. The Company was constructing six hotels for minority-owned entities or unrelated third parties during the first nine months of 1998, compared to 12 hotels during the nine months ended September 30, 1997. The Company also had several additional projects in various stages of pre-construction development during both nine month periods. Hotel management revenue decreased 29.5% and 14.6% to $621,839 and $1.9 million during the three and nine months ended September 30, 1998, respectively, from $881,822 and $2.3 million during the three and nine months ended September 30, 1997. The number of hotels managed for third parties and minority-owned entities decreased from 49 hotels, representing 3,933 rooms, at September 30, 1997 to 26 hotels, representing 2,222 rooms, at September 30, 1998. The addition of management contracts for six newly constructed hotels (373 rooms) was more than offset by the termination of three management contracts (250 rooms) with minority-owned entities as a result of the sale of the hotels (non-AmeriHost Inn hotels), the termination of 23 management contracts (1,497 rooms) with minority-owned hotels which became Consolidated hotels due to the Company acquiring additional ownership interests, and the termination of three management contracts for non-AmeriHost Inn hotels with unrelated third parties (337 rooms) as a result of the sale of the hotels in two of the three instances. Employee leasing revenue decreased 29.6% and 15.2% to $2.6 million and $8.4 million during the three and nine months ended September 30, 1998, respectively, from $3.8 million and $9.9 million during the three and nine months ended September 30, 1997, due primarily to the reduction in hotels managed for minority-owned entities and unrelated third parties as described above, and the associated decrease in payroll costs which is the basis for the employee leasing revenue. Total operating costs and expenses increased 2.4% and 5.7% to $13.7 million (70.6% of total revenues) and $41.0 million (78.3% of total revenues) during the three and nine months ended September 30, 1998, respectively, from $13.4 million (76.8% of total revenues) and $38.8 million (80.7% of total revenues) during the three and nine months ended September 30, 1997. Operating costs and expenses in the hotel operations segment increased 46.1% and 36.3% to $9.0 million and $23.4 million during the three and nine months ended September 30, 1998, respectively, from $6.2 million and $17.2 million during the three and nine months ended September 30, 1997. These increases resulted primarily from the net addition of 31 Consolidated hotels to this segment and are directly related to the 128.1% and 115.5% increase in Consolidated AmeriHost Inn revenues during the three and nine months ended September 30, 1998, respectively, offset by the 18.2% and 16.4% decrease in non-AmeriHost Inn hotel revenues during the three and nine months ended September 30, 1998. Hotel operations segment operating costs and expenses as a percentage of segment revenue decreased to 61.4% during the three months ended September 30, 1998, from 64.9% during the three months ended September 30, 1997. Hotel operations segment operating costs and expenses as a percentage of segment revenue decreased to 68.7% during the nine months ended September 30, 1998, from 71.0% during the nine months ended September 30, 1997. Operating costs and expenses as a percentage of revenues for the Consolidated AmeriHost Inn hotels decreased to 60.0% during the three month period ended September 30, 1998, from 61.6% during the three month period ended September 30, 1997, while the percentage increased slightly during the nine month period compared to the prior year, due primarily to the significant number of AmeriHost Inn hotels operating during their pre-stabilization period during the first nine months of 1998. Operating costs and expenses for the hotel development segment decreased 51.7% and 28.6% to $1.5 million and $7.5 million during the three and nine months ended September 30, 1998, respectively, from $3.1 million and $10.5 million during the three and nine months ended September 30, 1997, consistent with the 55.5% and 32.3% decrease in hotel development revenues for the three and nine months ended September 30, 1998, respectively. Operating costs and expenses in the hotel development segment as a percentage of segment revenue increased during the three and nine months ended September 30, 1998 due primarily to the overall decrease in the level of hotel development and construction activity performed for minority-owned entities and unrelated third parties and the relatively higher level of construction activity performed in 1998 compared to 1997, versus the level of pre-construction development activity. Construction activity has significantly higher operating costs compared to the pre-construction development activity. Hotel management segment operating costs and expenses increased 31.1% and 30.4% to $667,221 and $1.9 million during the three and nine months ended September 30, 1998, respectively, from $508,880 and $1.4 million during the three and nine months ended September 30, 1997. This increase was due to the increase in the number of hotels operated and managed, and the allocation of certain general and administrative expenses and preopening costs associated with the hotels opened during the three and nine months ended September 30, 1998 and 1997. Employee leasing operating costs and expenses decreased 30.2% and 15.1% to $2.6 million and $8.2 million during the three and nine months ended September 30, 1998, respectively, from $3.7 million and $9.6 million during the three and nine months ended September 30, 1997, which is consistent with the 29.6% and 15.2% decrease in segment revenue for the three and nine months ended September 30, 1998. Depreciation and amortization expense increased 6.9% and 18.8% to $1.2 million and $4.0 million during the three and nine months ended September 30, 1998, respectively, from $1.1 million and $3.4 million during the three and nine months ended September 30, 1997. The increase was primarily attributable to the net addition of 31 Consolidated hotels to the hotel operations segment and the resulting depreciation and amortization therefrom, offset by the decrease in depreciation from non-AmeriHost Inn hotels as a result of the sale/dispositions, and the completion of the sale and leaseback of 26 hotels on June 30, 1998. As a result of the sale/leaseback transaction, the Company did not recognize any depreciation on the assets sold during the third quarter of 1998 and will not recognize any depreciation from these sold assets going forward. Leasehold rents - hotels increased 300.1% and 70.6% to $1.5 million and $2.5 million during the three and nine months ended September 30, 1998, respectively, from $387,170 and $1.5 million during the three and nine months ended September 30, 1997. These increases are due primarily to the sale and leaseback transaction with PMC on June 30, 1998, partially offset by the sale of two leased Consolidated non-AmeriHost Inn hotels and the termination of the lease for another Consolidated non-AmeriHost Inn hotel in the first and second quarters of 1997. The Company anticipates leasehold rents hotels to continue increasing going forward as a result of the sale/leaseback transaction. Corporate general and administrative expense decreased 18.4% and 27.5% to $402,905 and $1.1 million during the three and nine months ended September 30, 1998, respectively, from $493,603 and $1.6 million during the three and nine months ended September 30, 1997, and can be attributed primarily to the recognition of compensation expense in the first nine months of 1997 for options issued at an exercise price below the then current market price, operational efficiencies and the allocation of certain expenses. The Company's operating income increased 25.4% and 27.9% to $2.6 million and $3.7 million during the three and nine months ended September 30, 1998, respectively, from $2.0 million and $2.9 million during the three and nine months ended September 30, 1997. The following discussion of operating income by segment is exclusive of any corporate general and administrative expense. Operating income from Consolidated AmeriHost Inn hotels increased 88.5% and 78.0% to $2.2 million and $3.7 million during the three and nine months ended September 30, 1998, respectively, from $1.2 million and $2.1 million during the three and nine months ended September 30, 1997. These increases in operating income were due to the increased number of Consolidated AmeriHost Inn hotels and the increase in same room revenues as a significant number of recently opened Consolidated AmeriHost Inn hotels were still operating in 1997 during their pre-stabilization period when revenues are typically lower. Operating income from the hotel development segment decreased to a loss of ($35,849) during the three months ended September 30, 1998, from income of $209,740 during the three months ended September 30, 1997 and decreased to $363,216 during the first nine months of 1998 from $1.2 million during the first nine months of 1997. The fluctuations in hotel development operating income were due to the timing of hotels developed and constructed for third parties and minority-owned entities during the third quarter and first nine months of 1998, compared with the third quarter and first nine months of 1997, and the overall decrease in the number of hotels developed and constructed for minority-owned entities and unrelated third parties. The hotel management segment incurred an operating loss of ($139,503) and ($226,677) during the three and nine months ended September 30, 1998, from operating income of $288,533 and $566,784 during the three and nine months ended September 30, 1997. This decrease was due primarily to the expenses associated with the increased number of Consolidated hotels managed during the past twelve months and the allocation of certain costs. Employee leasing operating income decreased 10.3% and 16.8% to $85,654 and $209,886 during the three and nine months ended September 30, 1998, respectively, from $95,516 and $252,209 during the three and nine months ended September 30, 1997, due to the decrease in employee leasing agreements with minority-owned entities and unrelated third parties. Interest expense remained relatively constant at $1.2 million during the three months ended September 30, 1998 and September 30, 1997. Interest expense increased 60.5% to $4.7 million for the nine months ended September 30, 1998 from $2.9 million during the nine months ended September 30, 1997. The increase attributable to the additional mortgage financing of newly constructed and acquired Consolidated AmeriHost Inn hotels, was offset by the sale and leaseback transaction with PMC, whereby the Company did not recognize any interest expense on the sold hotels beginning June 30, 1998. The Company's share of equity in income (loss) of affiliates decreased to ($38,410) during the three months ended September 30, 1998, from $74,795 during the three months ended September 30, 1997. The Company's share of equity in income (loss) of affiliates increased to $6,647 during the nine months ended September 30, 1998, from ($134,618) during the nine months ended September 30, 1997. The fluctuations in equity of affiliates during the three and nine months ended September 30, 1998, compared to the three and nine months ended September 30, 1997, were primarily due to the sale of three minority owned hotels at a significant gain and the acquisition of a significant number of minority owned hotels by the Company resulting in 100% ownership positions . Distributions from affiliates were $1.1 million during the nine months ended September 30, 1998, compared to $282,274 during the nine months ended September 30, 1997. The Company expensed $1.7 million during the first nine months of 1997 in costs associated with the termination of a consulting agreement and an employment agreement. The Company considers these costs non-recurring in nature. LIQUIDITY AND CAPITAL RESOURCES The Company has four main sources of cash from operating activities: (i) revenues from hotel operations; (ii) fees from development, construction and renovation projects; (iii) fees from management contracts; and (iv) fees from employee leasing services. Cash from hotel operations is typically received at the time the guest checks out of the hotel. Approximately 10% of the Company's hotel operations revenues is generated through other businesses and contracts and is usually paid within 30 to 45 days from billing. Fees from development, construction and renovation projects are typically received within 15 to 45 days from billing. Due to the procedures in place for processing its construction draws, the Company typically does not pay its contractors until the Company receives its draw from the equity or lending source. Management fee revenues typically are received by the Company within five working days from the end of each month. Cash from the Company's employee leasing segment typically is received 24 to 48 hours prior to the pay date. During the first nine months of 1998, the Company generated cash from operations of $1.8 million, compared to $2.6 million during the first nine months of 1997, or a decrease in cash provided by operations of $759,145. The first nine months of 1997 included a non-recurring payment of $1.6 million in contractual termination costs. The decrease in cash flow from operations during the first nine months of 1998, when compared to 1997, can be attributed to the increasing impact of seasonality and the significant number of hotels operating during their pre-stabilization period as the number of Consolidated hotels increased from 36 hotels at September 30, 1997 to 67 hotels at September 30, 1998, and the timing of collections from hotel development and construction activity for minority-owned entities. The Company invests cash in three principal areas: (i) the purchase of property and equipment through the construction and renovation of Consolidated hotels; (ii) the purchase of equity interests in hotels; and (iii) the making of loans to affiliated and non-affiliated hotels for the purpose of construction, renovation and working capital. During the first nine months of 1998, the Company received $23.4 million from investing activities compared to using $23.3 million during the first nine months of 1997. During the first nine months of 1998, the Company received $64.4 million from the sale of 27 hotels, used $32.9 million to purchase property and equipment for Consolidated AmeriHost Inn hotels, used $323,515 for investments in and advances to affiliates, net of distributions and collections, and used $7.8 million for the acquisition of additional partnership interests. During the first nine months of 1997, the Company used cash primarily for the purchase of $24.4 million in property and equipment for Consolidated AmeriHost Inn hotels, used $1.9 million for investments in and advances to affiliates, net of distributions and collections, and received $3.4 million from the sale of hotels. Cash used in financing activities was $21.9 million during the first nine months of 1998 compared to cash provided by financing activities of $21.8 million during the first nine months of 1997. In 1998, the primary factors were principal repayments of $49.5 million including the repayment of mortgages in connection with the sale of hotels, offset by $26.9 million in proceeds from the mortgage financing of Consolidated hotels and the assumption of mortgage debt in connection with the acquisition of hotels, and net proceeds of $1.3 million from the Company's operating line-of-credit. In 1997, the contributing factors were proceeds of $19.7 million from the mortgage financing of Consolidated hotels, net of principal repayments, net proceeds of $1.2 million from the exercise of common stock purchase options, and $1.2 million in net proceeds from the Company's operating line-of-credit. At September 30, 1998, the Company had $2.6 million outstanding under its operating line-of-credit which has been repaid subsequently. The Company has obtained a new operating line-of-credit effective November 1, 1998 which (i) has a limit of $7.0 million (ii) is collateralized by a security interest in certain of the Company's assets, including its interest in various joint ventures; (iii) bears interest at an annual rate equal to the lending bank's base rate plus 1/2% (with a minimum interest rate of 7.5%); and (iv) matures October 31, 1999. At September 30, 1998, the Company also had outstanding $2.25 million of its 7% Subordinated Notes which are unsecured obligations due October 9, 1999 and which pay interest quarterly. Pursuant to the terms of the 7% Subordinated Notes, no dividends may be paid on any capital stock of the Company until the 7% Subordinated Notes have been paid in full. At the Company's sole discretion, the 7% Subordinated Notes may be prepaid at any time without penalty. In March 1998, the Company's Board of Directors authorized the repurchase, from time to time on the open market, of up to $1.0 million of Common Stock over the next year. Through September 30, 1998, the Company repurchased 34,600 shares of the Company's Common Stock for approximately $159,000. The Company expects cash from operations to be sufficient to pay all operating and interest expenses in 1998. YEAR 2000 As is the case with other companies using computers in their operations, the Company has to address the Year 2000 compliance issue. The Year 2000 issue arises from the widespread use of computer programs that rely on two-digit date codes to perform computations or decision-making functions. The Company has begun its review of its computer programs to identify the systems that would be affected by the Year 2000 issue, and is in the process of reviewing any exposure the Company may have from vendors and financial institutions. However, the majority of the Company's critical computer applications are contracted out to a third-party provider. We have received written confirmation from this provider that they will be fully Year 2000 compliant by December 31, 1998. The Company believes that the cost, if any, to correct any Year 2000 issues in regards to its other systems will not be material. SEASONALITY The lodging industry, in general, is seasonal by nature. The Company's hotel revenues are generally greater in the second and third calendar quarters than in the first and fourth quarters due to weather conditions in the markets in which the Company's hotels are located, as well as general business and leisure travel trends. This seasonality can be expected to continue to cause quarterly fluctuations in the Company's revenues, and is expected to have a greater impact as the number of Consolidated hotels increases. Quarterly earnings may also be adversely affected by events beyond the Company's control such as extreme weather conditions, economic factors and other general factors affecting travel. In addition, hotel construction is seasonal, depending upon the geographic location of the construction projects. Construction activity in the Midwest may be slower in the first and fourth calendar quarters due to weather conditions. INFLATION Management does not believe that inflation has had, or is expected to have, any significant adverse impact on the Company's financial condition or results of operations for the periods presented. RECENTLY ISSUED ACCOUNTING STANDARDS Statement of Financial Accounting Standards ("SFAS") No. 131, Disclosures about Segments of an Enterprise and Related Information, which supersedes SFAS No. 14, Financial Reporting for Segments of a Business Enterprise, establishes standards for the way that public enterprises report information about operating segments in annual and interim financial statements. It also establishes new standards for disclosures regarding products and services, geographic areas and major customers. This Statement is effective for the Company for the year end December 31, 1998 and requires comparative information for earlier years to be restated. The Company's consolidated balance sheets and the related consolidated statements of income, changes in shareholder's equity and cash flows will not be affected by the implementation of SFAS No. 131. Statement of Position (SOP) No. 98-5, Reporting on the Costs of Start-Up Activities, provides guidance on the financial reporting of start-up costs and organization costs. This Statement requires costs of start-up activities and organization costs to be expensed as incurred. This SOP is effective for the Company for 1999, and will require the Company to report the cumulative effect of this change in accounting principle as of January 1, 1999, in accordance with Accounting Principles Board Opinion No. 20, Accounting Changes. The Company anticipates this cumulative effect will have a material impact on the Company's consolidated financial statements. PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 All statements contained herein that are not historical facts, including but not limited to, statements regarding the Company's hotels under construction and the operation of AmeriHost Inn hotels are based on current expectations. These statements are forward looking in nature and involve a number of risks and uncertainties. Actual results may differ materially. Among the factors that could cause actual results to differ materially are the following: the availability of sufficient capital to finance the Company's business plan on terms satisfactory to the Company; competitive factors, such as the introduction of new hotels or renovation of existing hotels in the same markets; changes in travel patterns which could affect demand for the Company's hotels; changes in development and operating costs, including labor, construction, land, equipment, and capital costs; general business and economic conditions; and other risk factors described from time to time in the Company's reports filed with the Securities and Exchange Commission. The Company wishes to caution readers not to place undue reliance on any such forward looking statements, which statements are made pursuant to the Private Securities Litigation Reform Act of 1995 and, as such, speak only as of the date made. AMERIHOST PROPERTIES, INC. AND SUBSIDIARIES SCHEDULE OF EARNINGS BEFORE INTEREST/RENT, TAXES AND DEPRECIATION/AMORTIZATION (UNAUDITED)
Three Months Ended September 30, Nine Months Ended September 30, -------------------------------- ------------------------------- 1998 1997 1998 1997 ---- ---- ---- ---- Revenue $ 19,429,557 $ 17,436,770 $52,360,200 $48,095,298 Operating costs and expenses 13,725,257 13,398,252 41,008,335 38,789,065 5,704,300 4,038,518 11,351,865 9,306,233 Corporate general and administrative (402,905) (493,603) (1,133,625) (1,562,802) Equity in net income and losses of affiliates (38,410) 74,795 6,647 (134,618) Earnings before minority interests 5,262,985 3,619,710 10,224,887 7,608,813 Minority interests in earnings of consolidated subsidiaries and partnerships (90,489) (100,935) 142,639 44,720 Earnings before interest/rent, taxes and depreciation/amortization, before non-recurring charges 5,172,496 3,518,775 10,367,526 7,653,533 Non-recurring charges -- -- -- (1,697,448) Earnings before interest/rent, taxes and depreciation/amortization $ 5,172,496 $ 3,518,775 $10,367,526 $5,956,085
PART II - OTHER INFORMATION Item 4. Submission of Matters to a Vote of Securities Holders: The annual shareholders' meeting was held on August 6, 1998. One matter was voted as follows: Matter 1: Election of Directors Director For Against Abstain -------- --- ------- ------- H. Andrew Torchia 5,192,106 1,320 30,154 Michael P. Holtz 5,079,496 113,930 30,154 Russell J. Cerqua 5,070,246 123,180 30,154 Reno J. Bernardo 5,069,646 123,780 30,154 Salomon J. Dayan 5,077,696 115,730 30,154 Richard A. Chaifetz 5,189,634 3,792 30,154 Item 6. Exhibits and Reports on Form 8-K: (a) Exhibits: Exhibit No. 27.0 Financial Data Schedule (b) Reports on Form 8-K: The Company filed a Form 8-K on July 15, 1998 with respect to the sale and leaseback of 26 hotels with PMC Commercial Trust, which included pro forma financial statements. Signatures Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. AMERIHOST PROPERTIES, INC. Registrant Date: November 13, 1998 By: /s/ James B. Dale James B. Dale Treasurer/Senior Vice President, Finance By: /s/ Michael E. Kirk Michael E. Kirk Corporate Controller EX-27 2
5 9-MOS 9-MOS DEC-31-1998 DEC-31-1997 SEP-30-1998 SEP-30-1997 5,345,982 4,190,262 0 0 6,969,893 6,802,784 0 0 0 0 13,920,794 12,629,594 95,844,746 74,899,685 13,876,489 8,768,237 112,212,012 90,443,669 15,070,288 12,169,301 0 0 0 0 0 0 30,889 31,990 20,984,007 23,041,025 112,212,012 90,443,669 52,360,200 48,095,298 52,360,200 48,095,298 41,008,335 38,789,065 41,008,335 38,789,065 7,604,166 6,375,181 0 0 4,719,408 2,857,209 (139,485) 593,656 (57,000) 193,000 (82,485) 400,565 0 0 (332,738) 0 0 0 (415,223) 400,565 (0.07) 0.06 (0.08) 0.03 Restated
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