-----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, CdahgTKi2jSdhYH+1ki0EYtuq9JDx7HvmIA/Y+cwJ40Ywg6G2mkhzxxXffW+ajiZ a4Wndqn5rQ3r008s6Urt6A== 0000950137-04-004208.txt : 20040517 0000950137-04-004208.hdr.sgml : 20040517 20040517172518 ACCESSION NUMBER: 0000950137-04-004208 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 20040512 ITEM INFORMATION: ITEM INFORMATION: Other events ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 20040517 FILER: COMPANY DATA: COMPANY CONFORMED NAME: ARLINGTON HOSPITALITY 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: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-15291 FILM NUMBER: 04813766 BUSINESS ADDRESS: STREET 1: 2355 SOUTH ARLINGTON HEIGHTS ROAD STREET 2: SUITE 400 CITY: ARLINGTON HEIGHTS STATE: IL ZIP: 60005 BUSINESS PHONE: 8472285400 MAIL ADDRESS: STREET 1: 2355 SOUTH ARLINGTON HEIGHTS ROAD STREET 2: SUITE 400 CITY: ARLINGTON HEIGHTS STATE: IL ZIP: 60005 FORMER COMPANY: FORMER CONFORMED NAME: AMERIHOST PROPERTIES INC DATE OF NAME CHANGE: 19920703 FORMER COMPANY: FORMER CONFORMED NAME: AMERICA POP INC DATE OF NAME CHANGE: 19871111 8-K 1 c85518e8vk.txt CURRENT REPORT SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported) May 12, 2004 Arlington Hospitality, Inc. --------------------------------------------------------- (Exact Name of Registrant as Specified in Its Charter) Delaware ------------------------------------------------ (State or Other Jurisdiction of Incorporation) 0-15291 36-3312434 -------------------------- ------------------------------------- (Commission File Number) (IRS Employer Identification Number) 2355 South Arlington Heights Road, Suite 400, Arlington Heights, Illinois 60005 - -------------------------------------------------- --------------- (Address of principal executive offices) (Zip Code) Registrant's Telephone Number, Including Area Code (847) 228-5400 N/A ------------------------------------------------------------ (Former Name or Former Address, if Changed Since Last Report) ITEM 5. OTHER EVENTS AND REGULATION FD DISCLOSURE. On May 12, 2004, Arlington Hospitality, Inc. (the "Company") issued a press release announcing April 2004 results. A copy of the Company's press release is attached to this current report on Form 8-K as Exhibit 99.1. On May 13, 2004, the Company issued a press release announcing that the Company will hold a conference call to discuss first-quarter 2004 financial results on Monday, May 17, 2004, at 11:30 a.m. ET. A copy of the Company's press release is attached to this current report on Form 8-K as Exhibit 99.2. ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS. (C) EXHIBITS 99.1 Press Release of Arlington Hospitality, Inc., dated May 12, 2004, Announcing April 2004 Results. 99.2 Press Release of Arlington Hospitality, Inc., dated May 13, 2004, Announcing Conference Call to Discuss First Quarter 2004 Financial Results on Monday, May 17, 2004 at 11:30 a.m. ET. 99.3 Press Release of Arlington Hospitality, Inc., dated May 17, 2004, Announcing Financial Results for the Three Months Ending March 31, 2004. ITEM 12. RESULTS OF OPERATIONS AND FINANCIAL CONDITION. On May 17, 2004, the Company issued a press release announcing its financial results for the three months ending March 31, 2004. A copy of the Company's press release is attached to this current report on Form 8-K as Exhibit 99.3. 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 hereunto duly authorized. DATE: May 17, 2004 Arlington Hospitality, Inc. (Registrant) By: /s/ Jerry H. Herman ------------------------------ Jerry H. Herman Chief Executive Officer By: /s/ James B. Dale ------------------------------ James B. Dale Senior Vice President and Chief Financial Officer EX-99.1 2 c85518exv99w1.txt PRESS RELEASE DATED MAY 12, 2004 EXHIBIT 99.1 [ARLINGTON HOSPITALITY, INC. LOGO] For Immediate Release CONTACT: MEDIA CONTACT: James B. Dale, Chief Financial Officer Jerry Daly or Carol McCune 847-228-5401 x 361 703-435-6293 jimdale@arlingtonhospitality.com jerry@dalygray.com ARLINGTON HOSPITALITY, INC. ANNOUNCES APRIL 2004 RESULTS ARLINGTON HEIGHTS, Ill., May 12, 2004--Arlington Hospitality, Inc. (Nasdaq/NM: HOST), a hotel development and management company, today announced April 2004 same-room operating results for the AmeriHost Inn hotels in which the company has an ownership interest. APRIL RESULTS Same-room revenue per available room (RevPAR) in April 2004 increased 6.8 percent to $33.17, compared to April 2003. Occupancy increased 5.2 percent to 59.1 percent, and average daily rate (ADR) increased 1.5 percent to $56.14. The April 2004 same-room results include 54 AmeriHost Inn hotels, which have been opened for at least 13 months.
One Month Four Months Ended Ended April 30 April 30 -------- -------- Occupancy - 2004 59.1% 51.1% Occupancy - 2003 56.2% 50.7% Increase (decrease) 5.2% 0.8% Average Daily Rate - 2004 $56.14 $55.76 Average Daily Rate - 2003 $55.29 $54.70 Increase (decrease) 1.5% 1.9% RevPAR - 2004 $33.17 $28.49 RevPAR - 2003 $31.05 $27.75 Increase (decrease) 6.8% 3.6%
- more - Arlington Hospitality Page 2 According to Smith Travel Research, preliminary results for April 2004 indicate that RevPAR for the midscale without food and beverage segment of the lodging industry will improve between 6 percent and 8 percent, compared to April 2003. SALES/DEVELOPMENT ACTIVITY The company did not sell any hotels during the month of April 2004 or thus far in May 2004; however, the company currently has six hotels under contract for sale, which are expected to be consummated within the next six months. When the company has hotels under contract for sale, even with nonrefundable cash deposits in certain cases, certain conditions to closing remain, and there can be no assurance that these sales will be consummated as anticipated. As previously announced, on April 7, 2004, the 79-room AmeriHost Inn & Suites opened in Weirton, W.Va. This hotel was constructed by Arlington for a joint venture in which the company is a partner. The sales and development activities set forth above, do not represent guidance on, or forecasts of, the results of the company's entire consolidated operations, which are reported on a quarterly basis. For more information regarding Arlington's hotels for sale and development opportunities either on a joint venture or turnkey basis, contact Stephen Miller, Senior Vice President - Real Estate and Business Development via email at stevem@arlingtonhospitality.com, or by telephone at (847) 228-5401, ext. 312. - more - Arlington Hospitality Page 3 ABOUT ARLINGTON HOSPITALITY Arlington Hospitality, Inc. is a hotel development and management company that builds, operates and sells mid-market hotels. Arlington is the nation's largest owner and franchisee of AmeriHost Inn hotels, a 104-property mid-market, limited-service hotel brand owned and presently franchised in 22 states and Canada by Cendant Corporation (NYSE: CD). Currently, Arlington Hospitality, Inc. owns or manages 63 properties in 15 states, including 55 AmeriHost Inn hotels, for a total of 4,590 rooms, with additional AmeriHost Inn & Suites hotels under development. This press release may contain forward-looking statements. Forward-looking statements are statements that are not historical, including statements regarding management's intentions, beliefs, expectations, representations, plans or predictions of the future, and are typically identified by words such as "believe," "expect," "anticipate," "intend," "estimate," "may," "will," "should," and "could." There are numerous risks and uncertainties that could cause actual results to differ materially from those set forth in the forward-looking statements. For a discussion of these factors, see the Company's report on Form 10-K for the year ended December 31, 2003 under the section headed "Management's Discussion and Analysis of Financial Condition and Results of Operations - Risk Factors." EX-99.2 3 c85518exv99w2.txt PRESS RELEASE DATED MAY 13, 2004 [ARLINGTON HOSPITALITY, INC. LOGO] For Immediate Release CONTACT: MEDIA CONTACT: James B. Dale, Chief Financial Officer Jerry Daly or Carol McCune 847-228-5401 x 361 703-435-6293 jimdale@arlingtonhospitality.com jerry@dalygray.com ARLINGTON HOSPITALITY TO HOLD FIRST-QUARTER 2004 EARNINGS CALL ON MAY 17 ARLINGTON HEIGHTS, Ill., May 13, 2004--Arlington Hospitality, Inc. (Nasdaq/NM: HOST), a hotel development and management company, primarily of AmeriHost Inns, today announced that the company will hold a conference call to discuss first-quarter 2004 financial results on Monday, May 17, 2004, at 11:30 a.m. ET. The call will be led by Jerry H. Herman, Arlington Hospitality president and chief executive officer, who will be joined by James B. Dale, chief financial officer. A question-and-answer period will follow the prepared remarks. Stockholders and other interested parties may participate in the conference call by calling (800) 240-2430, reference number 580293. A recording of the call will be available by telephone until midnight on Monday, May 24, by dialing (800) 405-2236, reference number 580293. Arlington Hospitality, Inc. is a hotel development and management company that builds, operates and sells mid-market hotels. Arlington is the nation's largest owner and franchisee of AmeriHost Inn hotels, a 104-property mid-market, limited-service hotel brand owned and presently franchised in 22 states and Canada by Cendant Corporation (NYSE: CD). Currently, Arlington Hospitality, Inc. owns or manages 63 properties in 15 states, including 55 AmeriHost Inn hotels, for a total of 4,590 rooms, with additional AmeriHost Inn & Suites hotels under development. EX-99.3 4 c85518exv99w3.txt PRESS RELEASE DATED MAY 17, 2004 EXHIBIT 99.3 [ARLINGTON HOSPITALITY, INC. LOGO] ARLINGTON HOSPITALITY, INC. 2355 South Arlington Heights Road - Suite 400 - Arlington Heights, IL 60005 847-228-5400 Fax: 847-228-5409 www.arlingtonhospitality.com For Immediate Release CONTACT: MEDIA CONTACT: James B. Dale, Chief Financial Officer Jerry Daly or Carol McCune 847-228-5401 x 361 703-435-6293 jimdale@arlingtonhospitality.com jerry@dalygray.com ARLINGTON HOSPITALITY, INC. ANNOUNCES 2004 FIRST QUARTER RESULTS ARLINGTON HEIGHTS, Ill., May 17, 2004--Arlington Hospitality, Inc. (Nasdaq/NM: HOST), a hotel development and management company, today announced results for the first quarter ended March 31, 2004. 10-Q FILING AND RESULTS CONFERENCE CALL The company intends to file its form 10-Q with the Securities and Exchange Commission later today. The document is accessible through the SEC's electronic filings database at www.sec.gov, and will be on the company's Web site, www.arlingtonhospitality.com. At 11:30 a.m. ET today, the company's senior management team will conduct a conference call to review first quarter 2004 financial results, followed by a question-and-answer period. Stockholders and other interested parties may participate in the conference call by calling (800) 240-2430, reference number 580293. - more - Arlington Hospitality Page 2 FIRST QUARTER RESULTS Revenues in the 2004 first quarter were down slightly to $17.4 million, compared to $17.8 million in the same 2003 period, primarily reflecting the sale of hotels during the past year, resulting in fewer hotels owned and operated by the company. Against the backdrop of what is generally regarded as the industry's seasonally weakest demand period, the company reported a net loss for the 2004 first quarter of approximately $(1,575,000), or $(0.31) per share, compared to a net loss of approximately $(1,483,000), or $(0.30) per share in the previous year. These results include non-cash hotel impairment charges of $320,000 pre-tax $(192,000 after tax) and $100,000 pre-tax $(60,000 after tax) in the 2004 and 2003 first quarters, respectively. The first quarter 2004 and 2003 results also include net losses from discontinued operations of $(379,000) and $(462,000), respectively, including additional impairment charges of $411,000 pre-tax $(246,000 after tax) in the first quarter of 2004, related to the non-AmeriHost hotels classified as discontinued operations. The above-mentioned non-cash hotel impairment charges have been recorded primarily in connection with the company's previously announced plan for hotel disposition. Discontinued operations relates to the operations of the non-AmeriHost Inn hotels sold, or expected to be sold within the next 12 months, which have been reclassified from continuing operations. Exclusive of the impairment charges, the company's results from discontinued operations improved from a pretax loss of approximately $(769,000) in the first quarter of 2003, to a pretax loss of approximately $(219,000) in 2004. "The $550,000 pretax, pre-impairment improvement in discontinued operations reflects the disposition of three non-strategic hotels in 2003 and strongly - more - Arlington Hospitality Page 3 supports our divestment strategy for our non-AmeriHost Inn hotels," said Jerry H. Herman, president and chief executive officer. "When taking into account this improvement in discontinued operations, together with the effect of additional non-cash impairment charges on certain AmeriHost Inn hotels, our results improved considerably in the 2004 first quarter, compared to the same period last year." Corporate general and administrative expense increased to approximately $867,000 during the three months ended March 31, 2004, from approximately $448,000 during the three months ended March 31, 2003. This increase was comprised primarily of professional fees incurred in connection with special corporate level strategic projects, including the PMC lease restructuring as discussed below, expenses incurred in connection with the company's previously announced plan to add depth to the accounting and finance area, and an adjustment for director restricted stock compensation. Net income (loss), and its components, are summarized below for the quarters ended March 31, 2004 and 2003: (In thousands) March 31, March 31, 2004 2003 ----------- ----------- Net loss from continuing operations, before impairment $(1,004,692) $ (960,363) Impairment provision, net of tax (192,080) (60,000) ----------- ----------- Net loss from continuing operations (1,196,772) (1,020,363) Discontinued operations, net of tax (378,634) (462,157) ----------- ----------- Net loss $(1,575,406) $(1,482,520) =========== =========== Net loss per share - Diluted: From continuing operations $ (0.24) $ (0.20) From discontinued operations (0.07) (0.10) ----------------------------- $ (0.31) $ (0.30) ============================= - more - Arlington Hospitality Page 4 During the quarter, Arlington reduced its long-term mortgage debt from $65.2 million, as of December 31, 2003, to $60.7 million, as of March 31, 2004. The reduction was primarily the result of 2004 first quarter hotel sales and application of the proceeds to pay off the debt. The company has mortgage debt of approximately $33.3 million related to hotels held for sale. The company expects to pay off this debt as the hotels are sold. Arlington's 2004 first quarter incentive and royalty-sharing revenues improved 38 percent to approximately $283,000, compared to the same period in 2003. This improvement was a result of the amortization of a greater number of development incentive fees received from Cendant in connection with the sale of AmeriHost hotels, and the growing stream of royalty-sharing fees received from Cendant as the brand expands. During 2004, the company also amended (i) the partnership agreement for a non-AmeriHost Inn hotel, and (ii) a lease agreement for another non-AmeriHost Inn hotel. In the first transaction, the company renegotiated its hotel joint-venture arrangement, under which the joint-venture partner agreed to fund all future cash-flow needs of the hotel property, without any funding obligation to Arlington, and without any dilution of ownership to Arlington. In addition, as part of this transaction, management responsibilities were transferred from an affiliate of Arlington to an affiliate of the joint-venture partner. In the second transaction, in which the company is a lessee, the term on such hotel lease was shortened from six years to a maximum of 18 months, and the annual lease payments were significantly reduced through the end of the lease. The company estimates that the transactions affecting these two joint ventures will save over $250,000 in cash flow annually. - more - Arlington Hospitality Page 5 AMERIHOST INN ROOM REVENUE During the first quarter of 2004, same-room revenue per available room (RevPAR) for the company's AmeriHost Inn hotels improved 2.3 percent to $26.95, compared to the same period last year. The comparable midscale without food and beverage segment, according to Smith Travel Research, rose 6.3 percent for the 2004 first quarter. One Month Three Months Ended Ended March 31 March 31 -------- -------- Occupancy - 2004 54.8% 48.5% Occupancy - 2003 54.2% 48.9% Increase (decrease) 1.1% (0.8%) Average Daily Rate - 2004 $55.42 $55.60 Average Daily Rate - 2003 $54.70 $54.48 Increase (decrease) 1.3% 2.1% RevPAR - 2004 $30.38 $26.95 RevPAR - 2003 $29.65 $26.66 Increase (decrease) 2.6% 2.3% "Many of our hotels are located in the Midwest, an area which is recovering more slowly than the economy as a whole," Herman said. "For example in the first quarter the hotel industry in the aggregate in Illinois, Michigan and Ohio had significantly lower improvements in RevPAR, compared to a 6.3 percent improvement for the mid-market without food and beverage segment nationwide. We are encouraged to see a positive increase in both average rate and occupancy across our system, and are beginning to reap the benefits from a number of our newly enacted sales initiatives." - more - Arlington Hospitality Page 6 Last week, the company reported a significant increase in same room RevPAR comparisons for the month of April. Herman said that the revenue results from April point to it being a "breakthrough" month for the company. "For the first time in more than three years, we saw a noticeable increase in mid-week business travel," he said. "It is encouraging to see RevPAR increase 6.8 percent in April. "Equally as important is that we are increasing our share of the market over our competitors. We gained market share in the 2003 fourth quarter, finishing the year with a market share of 97.3, according to Smith Travel Research. That trend continued in the first quarter, partially as a result of our new sales and marketing initiatives, as our share rose to 99.2, compared to the competition." LINE OF CREDIT RENEWED In late April, the company completed a one-year renewal of its line of credit with LaSalle Bank NA through April 30, 2005. The line has a maximum availability of $4.0 million at a 10 percent annual interest rate. The maximum availability will step down to $3.5 million on February 28, 2005. "We now are moving into a development mode focus, and will seek longer-term financing that will better align with the development and sales cycle," Herman said. "We are in discussions with an investment advisor, whom we expect to engage shortly, to determine how to best structure our future financing needs." PMC LEASE RESTRUCTURING UPDATE As previously announced, the company entered into a temporary letter agreement with PMC Commercial Trust (PMC) (AMEX: PCC), which recently was extended through May 2004. The - more - Arlington Hospitality Page 7 temporary letter agreement deferred a portion of the March, April and May base rent, providing for reduced payments, from approximately $445,000 to approximately $360,000, per month. In addition, the company was able to use $200,000 of the security deposit to partially fund the payments. The deferred portion of the March, April and May 2004 rent payments of approximately $264,000, plus the $200,000 required to restore the security deposit to its March 12, 2004 balance, will be payable to PMC in four equal monthly payments, beginning June 1, 2004. "Our objective is to restructure the leases in order to reduce our monthly base rent payments, improve cash flow, and to provide for the orderly sale of all 21 of the leased hotels over a period of time," Herman said. "The temporary letter agreement also provides for the gathering and sharing of certain hotel and financial information about the company's operations. Our discussions are progressing in a timely fashion; however, there still are a number of issues that need to be resolved." While the objective of the current discussions is to reach an agreement prior to the expiration of the temporary letter agreement, as extended, there can be no assurances that the leases will be restructured on terms and conditions acceptable to the company and its subsidiary, if at all, or that a restructuring will improve operations and cash flow, or provide for the sale of the hotels to third-party operators. DISPOSITION PROGRAM UPDATE The company sold two AmeriHost Inn hotels in the 2004 first quarter, bringing to eight the number of hotels sold as part of the company's previously announced plan to dispose of 25 to 30 hotels over a two-year period. The hotels, located in Upper Sandusky, Ohio and Redding, Calif., - more - Arlington Hospitality Page 8 were sold for $7.1 million in gross proceeds. Since the program's inception, the company has generated gross proceeds of approximately $23.3 million and paid down a total of approximately $14.1 million in debt. The company's hotel assets designated for sale within the next 12 months have been classified as "held for sale" on the accompanying balance sheet as of March 31, 2004. The operations of the non-AmeriHost Inn hotels to be sold have been reclassified from the company's continuing operations and presented as "discontinued operations" in the consolidated statements of operations. "Our pipeline is quite active, and we currently have six hotels under contract and are well along on negotiations on a number of other hotels," Herman said. "We are currently seeing considerably more interest in our hotels, as the potential buyers seek to take advantage of the seasonally stronger summer months, as well as the improving economy and hotel industry fundamentals." It should be noted that when the company has hotels under contract for sale, even with nonrefundable cash deposits in certain cases, certain conditions to closing remain, and there can be no assurance that these sales will be consummated as anticipated. Any forecasted amounts from closed or pending sales could differ from the final amounts included in the company's applicable quarterly and annual financial statements when issued. Furthermore, such forecasted amounts do not represent guidance on, or forecasts of, the results of the company's entire consolidated operations, which are reported on a quarterly basis. - more - Arlington Hospitality Page 9 Information on Arlington's hotels being brokered for sale can be obtained by calling Steve Miller, senior vice-president of real estate and business development, at 847-228-5400, extension 312, or e-mailing stevem@arlingtonhospitality.com. DEVELOPMENT PROGRAM UPDATE Shortly after the close of the 2004 first quarter, Arlington opened a new, 79-room hotel in Weirton, W. Va. The company also is evaluating several properties in the Midwest and California for use of its new 80- to 90-room hotel prototype design, which was created for larger markets. ABOUT ARLINGTON HOSPITALITY Arlington Hospitality, Inc. is a hotel development and management company that builds, operates and sells mid-market hotels. Arlington is the nation's largest owner and franchisee of AmeriHost Inn hotels, a 104-property mid-market, limited-service hotel brand owned and presently franchised in 22 states and Canada by Cendant Corporation (NYSE: CD). Currently, Arlington Hospitality, Inc. owns or manages 63 properties in 15 states, including 55 AmeriHost Inn hotels, for a total of 4,590 rooms, with additional AmeriHost Inn & Suites hotels under development. This press release may contain forward-looking statements. Forward-looking statements are statements that are not historical, including statements regarding management's intentions, beliefs, expectations, representations, plans or predictions of the future, and are typically identified by words such as "believe," "expect," "anticipate," "intend," "estimate," "may," "will," "should," and "could." There are numerous risks and uncertainties that could cause actual results to differ materially from those set forth in the forward-looking statements. For a discussion of these factors, see the Company's report on Form 10-K for the year ended December 31, 2003 under the section headed "Management's Discussion and Analysis of Financial Condition and Results of Operations - Risk Factors" as they may be updated in the company's subsequent SEC filings. - 30 - ARLINGTON HOSPITALITY, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS ================================================================================
March 31, December 31, 2004 2003 ----------- ------------ (unaudited) ASSETS Current assets: Cash and cash equivalents $ 4,972,805 $ 3,623,550 Accounts receivable, less an allowance of $76,500 at March 31, 2004 and December 31, 2003 (including approximately $975,000 and $382,000 from related parties) 2,255,281 1,289,492 Notes receivable, current portion - 146,000 Prepaid expenses and other current assets 664,635 1,142,032 Refundable income taxes 228,197 975,316 Costs and estimated earnings in excess of billings on uncompleted contracts 142,766 1,232,481 Assets held for sale - other brands 10,276,601 10,603,160 Assets held for sale - AmeriHost Inn hotels 22,351,372 28,162,442 ----------- ----------- Total current assets 40,891,659 47,174,473 ----------- ----------- Investments in and advances to unconsolidated hotel joint ventures 3,215,243 3,309,344 ----------- ----------- Property and equipment: Land 5,735,489 5,735,489 Buildings 31,177,381 31,174,776 Furniture, fixtures and equipment 13,394,351 13,176,842 Construction in progress 319,711 312,925 Leasehold improvements 2,396,689 2,396,689 ----------- ----------- 53,023,621 52,796,721 Less accumulated depreciation and amortization 14,033,627 13,242,842 ----------- ----------- 38,989,994 39,553,879 ----------- ----------- Notes receivable, less current portion 966,042 867,500 Deferred income taxes 7,121,423 6,071,000 Other assets, net of accumulated amortization of approximately $1,066,000 and $1,311,000 2,529,389 2,737,217 ----------- ----------- 10,616,854 9,675,717 ----------- ----------- $93,713,748 $99,713,413 =========== ===========
ARLINGTON HOSPITALITY, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS ================================================================================
March 31, December 31, 2004 2003 ------------ ------------ (unaudited) LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable $ 2,499,428 $ 2,768,402 Bank line-of-credit 4,000,000 3,850,000 Accrued payroll and related expenses 380,709 393,815 Accrued real estate and other taxes 1,992,265 1,980,015 Other accrued expenses and current liabilities 1,585,082 1,407,511 Current portion of long-term debt 1,195,050 1,195,050 Liabilities of assets held for sale - other brands 9,396,312 9,585,492 Liabilities of assets held for sale - AmeriHost Inns 24,442,718 28,540,561 ------------ ------------ Total current liabilities 45,491,564 49,720,846 ------------ ------------ Long-term debt, net of current portion 26,250,445 26,513,398 ------------ ------------ Deferred income 11,405,455 11,361,927 ------------ ------------ Commitments and contingencies Minority interests 183,122 329,819 ------------ ------------ Shareholders' equity: Preferred stock, no par value; authorized 100,000 shares; none issued - - Common stock, $.005 par value; authorized at 25,000,000 shares; issued and outstanding 5,038,174 shares at March 31, 2004, and 4,994,956 shares at December 31, 2003 25,191 24,975 Additional paid-in capital 13,391,231 13,220,302 Retained earnings (deficit) (2,596,385) (1,020,979) ------------ ------------ 10,820,037 12,224,298 Less: Stock subscriptions receivable (436,875) (436,875) ------------ ------------ Total shareholders' equity 10,383,162 11,787,423 ------------ ------------ $ 93,713,748 $ 99,713,413 ============ ============
ARLINGTON HOSPITALITY, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE THREE MONTHS ENDED MARCH 31, (UNAUDITED) ================================================================================
Revenue: 2004 2003 ------------ ------------ Hotel operations: AmeriHost Inn hotels $ 7,819,524 $ 8,522,509 Other hotels 370,710 336,835 Development and construction 1,200,654 1,479,978 Hotel sales and commissions 6,839,249 6,443,290 Management services 100,622 111,154 Employee leasing 562,276 517,407 Incentive and royalty sharing 283,408 205,655 Office building rental 173,907 177,228 ------------ ------------ $ 17,350,350 $ 17,794,056 ------------ ------------ Operating costs and expenses: Hotel operations: AmeriHost Inn hotels 7,029,163 7,664,409 Other hotels 439,049 450,089 Development and construction 1,480,392 1,592,127 Hotel sales and commissions 5,543,601 5,240,817 Management services 90,381 64,933 Employee leasing 545,130 501,922 Office building rental 41,112 49,552 ------------ ------------ 15,168,828 15,563,849 ------------ ------------ 2,181,522 2,230,207 Depreciation and amortization 863,610 1,034,035 Leasehold rents - hotels 1,256,545 1,270,127 Corporate general and administrative 867,227 447,831 Impairment provision 320,133 100,000 ------------ ------------ Operating loss (1,125,993) (621,786) Other income (expense): Interest expense (974,874) (1,095,394) Interest income 125,938 119,959 Other income (expense) 20,135 (1,333) Equity in net income and (losses) from unconsolidated joint ventures (6,166) (74,446) ------------ ------------ Loss before minority interests and income taxes (1,960,960) (1,673,000) Minority interests in operations of consolidated joint ventures 33,812 28,363 ------------ ------------ Loss before income tax (1,994,772) (1,701,363) Income tax benefit 798,000 681,000 ------------ ------------ Net loss from continuing operations (1,196,772) (1,020,363) Discontinued operations, net of tax (378,634) (462,157) ------------ ------------ Net loss $ (1,575,406) $ (1,482,520) ============ ============ Net loss from continuing operations per share: Basic $ (0.24) $ (0.20) Diluted $ (0.24) $ (0.20) Net loss per share: Basic $ (0.31) $ (0.30) Diluted $ (0.31) $ (0.30)
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