- Completed Portfolio Repositioning
Program
- Significantly Improved Balance
Sheet
FelCor Lodging Trust Incorporated (NYSE: FCH) today reported
results for the second quarter ended June 30, 2015.
Second Quarter Highlights
- Same-store RevPAR increased 7.3% over
the same period in 2014. RevPAR increased 9.4% in June.
- Adjusted FFO per share increased to
$0.28.
- Adjusted EBITDA was $69.7 million and
same-store Adjusted EBITDA increased by $7.2 million, or 11.9%, to
$67.7 million compared to the same period in 2014.
- Net loss per share was $0.12.
- Issued 18.4 million shares of common
stock at $11.25 per share for aggregate net proceeds of
$198.7 million.
- Redeemed all $170 million of our
8.0% Series C Cumulative Preferred Stock.
- Issued $475 million of 6.0% senior
unsecured notes due 2025, and redeemed all $525 million of
6.75% senior secured notes due 2019.
- Repaid $189 million of mortgage
debt and increased unencumbered hotels to 19.
- Sold three hotels for aggregate gross
proceeds of $90 million in the quarter and another hotel for
$14 million in July. Agreed to sell the remaining
non-strategic hotel, which is expected to close in the third
quarter.
- Amended the line of credit to expand
its borrowing capacity from $225 million to $400 million,
extended the final maturity to 2020 and lowered the effective
interest rate by 62.5 basis points.
“We continue to deliver on our commitments to stockholders. We
have essentially completed our portfolio repositioning program,
with our sole remaining non-strategic hotel under contract to be
sold this quarter. I am very pleased with the results, which are
producing exceptional returns, as illustrated by our strong second
quarter. We have built a high-quality and well-positioned portfolio
that continually outperforms the industry and gains market share,”
said Richard A. Smith, President and Chief Executive Officer of
FelCor.
Mr. Smith added, “We also completed several important balance
sheet initiatives during the quarter that lowered our cost of debt,
progressed toward an unsecured corporate debt environment, extended
debt maturities and created capacity to fund high
return-on-investment projects and other growth opportunities. Those
efforts have set us up for continued success.”
Second Quarter Hotel Results
Second Quarter 2015 2014
Change Same-store hotels (39) RevPAR $ 154.48 $
143.98 7.3 % Total hotel revenue, in millions $ 219.6 $ 205.8 6.7 %
Hotel EBITDA, in millions $ 71.8 $ 65.1 10.3 % Hotel EBITDA margin
32.7 % 31.6 % 105 bps
RevPAR for our 39 same-store hotels increased 7.3% (to $154.48)
from the same period in 2014. The change reflects a 6.4% increase
in ADR (to $190.42) and an 0.8% increase in occupancy (to 81.1%).
Hotel EBITDA for our 39 same-store hotels increased by 10.3% to
$71.8 million and Hotel EBITDA margin was 32.7% during the quarter,
a 105 basis point increase.
RevPAR for the eight Wyndham hotels (which we converted from
Holiday Inn on March 1, 2013) increased 18.9% (to $151.76)
from the same period in 2014. We expect revenue and EBITDA at these
properties will continue to grow meaningfully during 2015,
supported by the recent renovations and repositioning to
upper-upscale. Wyndham Worldwide Corporation has guaranteed the
minimum annual NOI for these hotels through 2023. We recorded
$584,000 of the guaranteed amount in the quarter.
See page 14 for hotel portfolio composition and pages 15-17 and
21-22 for more detailed hotel portfolio operating data.
Second Quarter Operating Results
Second Quarter $ in millions, except for per share
information
2015 2014 Change
Same-store Adjusted EBITDA $ 67.7 $ 60.5 11.9 % Adjusted EBITDA $
69.7 $ 69.2 0.7 % Adjusted FFO per share $ 0.28 $ 0.26 $ 0.02 Net
income (loss) per share $ (0.12 ) $ 0.12 $ (0.24 )
Same-store Adjusted EBITDA increased 11.9% to $67.7 million from
the same period in 2014. Adjusted EBITDA (which includes Adjusted
EBITDA from sold hotels) was $69.7 million.
Adjusted FFO was $39.3 million ($0.28 per share), compared
to $32.9 million ($0.26 per share) for the same period in
2014. Net loss attributable to common stockholders was $17.3
million ($0.12 per share) in 2015, compared to net income of
$14.6 million ($0.12 per share) for the same period in 2014. Net
loss for the second quarter 2015 included $30.8 million in debt
extinguishment charges, offset by a $7.1 million gain on sale of an
unconsolidated joint venture. Net income in 2014 included $15.6
million of net gain on the sale of consolidated hotels.
Year-to-Date Operating Results
RevPAR for our 39 same-store hotels increased 10.1% (to $145.18)
from the same period in 2014. The change reflects a 6.5% increase
in ADR (to $186.24) and a 3.4% increase in occupancy (to 78.0%).
Hotel EBITDA for our 39 same-store hotels increased 18.9% to
$124.1 million, and Hotel EBITDA margin for these properties
increased 222 basis points to 30.0%.
Same-store Adjusted EBITDA increased 22.0% to
$114.3 million from the same period in 2014. Adjusted EBITDA
(which includes Adjusted EBITDA from sold hotels) increased 8.4% to
$119.6 million from the same period in 2014.
Adjusted FFO was $57.6 million ($0.43 per share),
compared to $37.0 million ($0.29 per share) for the same
period in 2014. Net loss attributable to common stockholders was
$20.2 million ($0.15 per share) in 2015, compared to a
net loss of $9.9 million ($0.08 per share) for the same period
in 2014. Net loss in 2015 included $30.9 million in debt
extinguishment charges offset by a $16.3 million net gain on
the sale of consolidated hotels and a $7.1 million gain on sale of
an unconsolidated joint venture. Net loss in 2014 included
$21.5 million of net gain on the sale of consolidated
hotels.
EBITDA, Adjusted EBITDA, Same-store Adjusted EBITDA, Hotel
EBITDA, Hotel EBITDA margin, FFO, Adjusted FFO and Adjusted FFO per
share are all non-GAAP financial measures. See our discussion of
“Non-GAAP Financial Measures” beginning on page 17 for a
reconciliation of each of these measures to the most comparable
GAAP financial measure and for information regarding the use,
limitations and importance of these non-GAAP financial
measures.
Portfolio Repositioning
As part of our portfolio repositioning program, we have sold 39
non-strategic hotels for total gross proceeds of $816 million
(reflects our pro rata share) since December 2010. We have one
remaining hotel to sell.
During the second quarter, we sold three hotels - the 274-room
Embassy Suites Charlotte (of which we owned 50%), the 216-room
Embassy Suites San Antonio - NW I-10 and the 260-room Embassy
Suites Austin - Central for total gross proceeds of
$90 million in separate transactions.
In July, we sold the Holiday Inn Orlando - Airport for gross
proceeds of $14 million. We have entered into a contract to
sell our last remaining non-strategic hotel, the 262-room Embassy
Suites Chicago - Lombard, and expect to close the sale in the third
quarter.
Capital Expenditures
During the quarter, we invested $13.2 million in capital
improvements at our hotels (excluding The Knickerbocker, in which
we invested $11.5 million during the quarter). During 2015, we
plan to invest approximately $45 million in capital
improvements and renovations, concentrated at five hotels, as part
of our long-term capital plan. Please see page 12 of this release
for more detail on renovations.
Balance Sheet
As of June 30, 2015, we had $1.5 billion of consolidated
debt bearing a 5.0% weighted-average interest rate and an
eight-year weighted-average maturity. We had $106.1 million of cash
and cash equivalents and $23.6 million of restricted cash, of which
$6.3 million secured our Knickerbocker construction loan. We
received an additional $16.8 million in proceeds on
July 1, 2015 for a hotel sold on June 30, 2015.
During the quarter, we significantly reduced our cost of debt,
mitigated future market risk and further staggered our maturity
profile. We now have no material debt maturing until 2020 and a
weighted average debt maturity of 2023. Our weighted average cost
of debt is more than 125 basis points lower than at December 31,
2013. In addition, we now have 19 unencumbered properties, ten more
than at March 31, 2015. The following second quarter transactions
helped us achieve this improvement:
- On April 14, 2015, we issued
18.4 million shares of our common stock for net proceeds of
approximately $199 million. On May 14, 2015, we redeemed
all $170 million of our 8.0% Series C Cumulative Preferred
Stock.
- On May 21, 2015, we issued
$475 million in aggregate principal amount of our 6.0% senior
notes due 2025. We used the net proceeds from the new senior notes,
together with cash on hand and funds drawn under our line of
credit, to purchase and redeem our $525 million of 6.75%
senior secured notes due 2019.
- On June 9, 2015, we amended and
restated our secured line of credit to expand our borrowing
capacity from $225 million to $400 million. The amended
facility matures in June 2020 (extended from June 2017), including
an optional one-year extension that is subject to certain
conditions. Funds drawn under the line of credit bear interest at
LIBOR (no floor) plus an applicable margin ranging from 225 to 275
basis points (reduced from 337.5 basis points), depending on our
leverage. The facility is secured by mortgages on seven
hotels.
- During the quarter, we repaid a
$140 million loan and a $49 million loan (both would have
otherwise matured in 2017) using asset sale proceeds and funds
drawn under our line of credit.
Common Dividend
During the second quarter, we declared a $0.04 per share common
stock dividend, which was paid in July. Future quarterly common
stock dividends will be determined by our Board of Directors based
on funds available for distribution, reinvestment opportunities
within our portfolio and taxable income, among other things.
Outlook
We increased the mid-point of our RevPAR, Adjusted EBITDA and
Adjusted FFO per share outlook to account for second quarter
results, updated timing of asset sales and recent balance sheet
accomplishments. Demand growth reflects strength in both the
leisure and corporate segments, which we expect will continue.
Occupancy should increase as demand growth continues to outpace new
supply. Average occupancy for the U.S. is at record levels,
allowing for accelerating ADR growth. Our projected RevPAR growth
exceeds projected overall industry RevPAR growth because of our
high-quality and diverse portfolio, which is over-weighted to
higher-growth markets with favorable fundamentals.
Our outlook assumes we sell our sole remaining non-strategic
hotel during the third quarter. Our outlook also assumes EBITDA for
the Wyndham hotels equals the aggregate amounts guaranteed by
Wyndham for the year.
For the year 2015, we expect:
- RevPAR for same-store hotels will
increase 8.75 - 9.5%;
- Adjusted EBITDA will be
$242.0 million - 247.5 million;
- Adjusted FFO per share will be $0.86 -
0.90;
- Net income attributable to FelCor will
be $18.6 million - 24.0 million; and
- Interest expense, including our pro
rata share from joint ventures, will be approximately
$83.5 million.
The following table reconciles our Adjusted EBITDA outlook (in
millions):
Low Middle
High Previous Adjusted EBITDA (40 hotels)(a) $
232.5 $ 235.5 $ 238.5 Improved operations 1.0 0.5 —
Current Adjusted EBITDA (40 hotels)(a) $ 233.5 $
236.0 $ 238.5 2015 EBITDA of non-strategic hotels(b) 8.5
8.8 9.0
2015 Adjusted EBITDA $ 242.0
$ 244.8 $ 247.5
(a) Includes The Knickerbocker, which opened in February
2015.
(b) Forecasted EBITDA for eight non-strategic hotels from
January 1, 2015 through the actual or assumed sale dates.
About FelCor
FelCor, a real estate investment trust, owns a diversified
portfolio of primarily upper-upscale and luxury hotels that are
located in major and resort markets. FelCor partners with leading
hotel companies to operate its hotels, which are flagged under
globally renowned brands and premier independent hotels. Additional
information can be found on the Company’s website at www.felcor.com.
We invite you to listen to our second quarter earnings
Conference Call on Tuesday, July 28, 2015 at 11:00 a.m.
(Central Time). The conference call will be webcast simultaneously
on FelCor’s website at www.felcor.com.
Interested investors and other parties who wish to access the call
can go to FelCor’s website and click on the conference call
microphone icon on the “Investor Relations” page. The conference
call replay will also be archived on the Company’s website.
With the exception of historical information, the matters
discussed in this news release include “forward-looking statements”
within the meaning of the federal securities laws. These
forward-looking statements are identified by their use of terms and
phrases such as “anticipate,” “believe,” “could,” “estimate,”
“expect,” “intend,” “may,” “plan,” “predict,” “project,” “should,”
“will,” “continue” and other similar terms and phrases, including
references to assumptions and forecasts of future results.
Forward-looking statements are not guarantees of future
performance. Numerous risks and uncertainties, and the occurrence
of future events, may cause actual results to differ materially
from those anticipated at the time the forward-looking statements
are made. Current economic circumstances or an economic slowdown
and the impact on the lodging industry, operating risks associated
with the hotel business, relationships with our property managers,
risks associated with our level of indebtedness and our ability to
meet debt covenants in our debt agreements, our ability to complete
acquisitions, dispositions and debt refinancing, the availability
of capital, the impact on the travel industry from security
precautions, our ability to continue to qualify as a Real Estate
Investment Trust for federal income tax purposes and numerous other
factors may affect future results, performance and achievements.
Certain of these risks and uncertainties are described in greater
detail in our filings with the Securities and Exchange Commission.
Although we believe our current expectations to be based upon
reasonable assumptions, we can give no assurance that our
expectations will be attained or that actual results will not
differ materially. We undertake no obligation to update any
forward-looking statement to conform the statement to actual
results or changes in our expectations.
SUPPLEMENTAL INFORMATION
INTRODUCTION
The following information is presented in order to help our
investors understand FelCor’s financial position as of and for the
three and six months ended June 30, 2015.
TABLE OF CONTENTS
Page Consolidated Statements of
Operations(a)
8
Consolidated Balance Sheets(a) 9 Consolidated Debt Summary 10
Schedule of Encumbered Hotels 11 Capital Expenditures 12 Hotels
Under Renovation During 2015 12 Supplemental Financial Data 13
Hotel Portfolio Composition 14 Hotel Operating Statistics by Brand
15 Hotel Operating Statistics by Market 16 Historical Quarterly
Operating Statistics 17 Non-GAAP Financial Measures 17
(a)
Our consolidated statements of operations
and balance sheets have been prepared without audit. Certain
information and footnote disclosures normally included in financial
statements presented in accordance with GAAP have been omitted. The
consolidated statements of operations and balance sheets should be
read in conjunction with the consolidated financial statements and
notes thereto included in our most recent Annual Report on Form
10-K.
Consolidated Statements of
Operations
(in thousands, except per share data)
Three Months Ended Six Months Ended June
30, June 30, 2015 2014 2015
2014 Revenues: Hotel operating revenue: Room $
182,066 $ 200,238 $ 344,372 $ 370,067 Food and beverage 42,151
45,471 81,995 85,256 Other operating departments 11,832 12,570
22,967 23,978 Other revenue 5,054 1,236 5,464
1,563 Total revenues 241,103 259,515 454,798
480,864 Expenses: Hotel departmental expenses: Room
44,423 50,585 86,934 97,318 Food and beverage 31,278 33,066 61,974
64,253 Other operating departments 4,331 5,977 8,780 11,580 Other
property related costs 57,791 62,912 114,686 124,490 Management and
franchise fees 9,202 10,160 18,287 19,173 Taxes, insurance and
lease expense 16,579 26,992 31,555 50,625 Corporate expenses 6,530
7,647 15,103 15,472 Depreciation and amortization 28,750 29,082
56,522 58,683 Other expenses 1,411 2,114 5,639
4,128 Total operating expenses 200,295 228,535
399,480 445,722 Operating income 40,808 30,980 55,318
35,142 Interest expense, net (20,278 ) (24,495 ) (39,759 ) (49,722
) Debt extinguishment (30,823 ) (27 ) (30,896 ) (33 ) Other gains,
net 166 100 166 100 Income (loss)
before equity in income from unconsolidated entities (10,127 )
6,558 (15,171 ) (14,513 ) Equity in income from unconsolidated
entities 7,513 2,766 7,662 3,409 Income
(loss) from continuing operations (2,614 ) 9,324 (7,509 ) (11,104 )
Income (loss) from discontinued operations (83 ) 5 (79 ) 140
Income (loss) before gain (loss) on sale of property (2,697
) 9,329 (7,588 ) (10,964 ) Gain (loss) on sale of property, net
(550 ) 15,626 16,337 21,083 Net income (loss)
(3,247 ) 24,955 8,749 10,119 Net loss (income) attributable to
noncontrolling interests in other partnerships 247 (262 ) (4,632 )
(184 ) Net loss (income) attributable to redeemable noncontrolling
interests in FelCor LP 75 (71 ) 89 50 Preferred distributions -
consolidated joint venture (359 ) (341 ) (707 ) (522 ) Net income
(loss) attributable to FelCor (3,284 ) 24,281 3,499 9,463 Preferred
dividends (7,903 ) (9,678 ) (17,581 ) (19,356 ) Redemption of
preferred stock (6,096 ) — (6,096 ) — Net income
(loss) attributable to FelCor common stockholders $ (17,283 ) $
14,603 $ (20,178 ) $ (9,893 ) Basic and diluted per common
share data: Income (loss) from continuing operations $ (0.12 ) $
0.12 $ (0.15 ) $ (0.08 ) Net income (loss) $ (0.12 ) $ 0.12
$ (0.15 ) $ (0.08 ) Basic weighted average common shares
outstanding 140,322 124,169 132,465 124,158
Diluted weighted average common shares outstanding 140,322
125,386 132,465 124,158
Consolidated Balance Sheets
(in thousands)
June 30, December 31, 2015 2014
Assets Investment in hotels, net of accumulated depreciation
of $865,502 and $850,687 at June 30, 2015 and December 31, 2014,
respectively $ 1,724,543 $ 1,599,791 Hotel development 51,191
297,466 Investment in unconsolidated entities 11,343 15,095 Hotels
held for sale 36,173 47,145 Cash and cash equivalents 106,107
47,147 Restricted cash 23,560 20,496 Accounts receivable, net of
allowance for doubtful accounts of $189 and $241 at June 30, 2015
and December 31, 2014, respectively 53,427 27,805 Deferred
expenses, net of accumulated amortization of $5,692 and $17,111 at
June 30, 2015 and December 31, 2014, respectively 26,308 25,827
Other assets 19,308 23,886 Total assets $ 2,051,960
$ 2,104,658
Liabilities and Equity Debt $
1,535,256 $ 1,585,867 Distributions payable 12,406 13,827 Accrued
expenses and other liabilities 135,912 135,481 Total
liabilities 1,683,574 1,735,175 Commitments and
contingencies Redeemable noncontrolling interests in FelCor LP, 611
units issued and outstanding at June 30, 2015 and December 31, 2014
6,041 6,616 Equity: Preferred stock, $0.01 par value,
20,000 shares authorized: Series A Cumulative Convertible Preferred
Stock, 12,879 shares, liquidation value of $321,987, issued and
outstanding at June 30, 2015 and December 31, 2014 309,337 309,337
Series C Cumulative Redeemable Preferred Stock, 68 shares,
liquidation value of $169,950, issued and outstanding at December
31, 2014 — 169,412 Common stock, $0.01 par value, 200,000 shares
authorized; 143,328 and 124,605 shares issued and outstanding at
June 30, 2015 and December 31, 2014, respectively 1,433 1,246
Additional paid-in capital 2,561,854 2,353,666 Accumulated deficit
(2,562,464 ) (2,530,671 ) Total FelCor stockholders’ equity 310,160
302,990 Noncontrolling interests in other partnerships 8,997 18,435
Preferred equity in consolidated joint venture, liquidation value
of $43,898 and $42,094 at June 30, 2015 and December 31, 2014,
respectively 43,188 41,442 Total equity 362,345
362,867 Total liabilities and equity $ 2,051,960
$ 2,104,658
Consolidated Debt
Summary
(dollars in thousands)
EncumberedHotels
InterestRate (%)
MaturityDate
June 30, 2015
December 31, 2014
Senior unsecured notes — 6.00 June 2025 $ 475,000 $ — Senior
secured notes 9 5.625 March 2023 $ 525,000 $ 525,000 Mortgage
debt(a) 4 4.95 October 2022 $ 123,422 $ 124,278 Mortgage debt 1
4.94 October 2022 $ 30,973 $ 31,228 Line of credit 7 LIBOR + 2.75
June 2019(b) $ 316,000 $ — The Knickerbocker loan:(c)
Construction tranche 1 LIBOR + 4.00 May 2016 58,562 58,562 Cash
collateralized tranche — LIBOR + 1.25 May 2016 6,299 6,299 Retired
debt — — — — 840,500
Total 22 $
1,535,256 $ 1,585,867 (a) This debt is
comprised of separate non-cross-collateralized loans each secured
by a mortgage of a single hotel. (b) Our $400 million line of
credit can be extended for one year (to 2020), subject to
satisfying certain conditions.
(c)
This construction loan (total capacity of
$85.0 million) was obtained to finance the redevelopment of The
Knickerbocker, and can be extended for one year subject to
satisfying certain conditions.
Schedule of Encumbered Hotels
(dollars in millions)
Consolidated June 30, 2015 Debt
Balance Encumbered Hotels Senior secured notes
(5.625%) $ 525 Atlanta Buckhead - ES, Boston Marlboro
- ES, Burlington - SH, Dallas Love Field - ES, Milpitas - ES,
Myrtle Beach Resort - HIL, Orlando South - ES, Philadelphia Society
Hill - SH and SF South San Francisco - ES Mortgage debt $ 27 Napa
Valley - ES Mortgage debt $ 35 Ft. Lauderdale - ES Mortgage debt $
23 Birmingham - ES Mortgage debt $ 38 Minneapolis Airport - ES
Mortgage debt $ 31 Deerfield Beach - ES Line of credit $ 316 Austin
- DTG, Boston Copley - FM, Charleston Mills House - WYN, LA LAX S -
ES, Santa Monica at the Pier - WYN, SF Union Square - MAR and St.
Petersburg Vinoy - REN Construction loan $ 65 The Knickerbocker
Capital Expenditures
(in thousands)
Three Months Ended Six Months Ended June
30, June 30, 2015 2014 2015
2014 Improvements and additions to majority-owned
hotels $ 12,274 $ 19,415 $ 25,757 $ 48,032 Partners’ pro rata share
of additions to consolidated joint venture hotels (1 ) (166 ) (25 )
(260 ) Pro rata share of additions to unconsolidated hotels 969
781 1,273 1,404 Total additions to
hotels(a) $ 13,242 $ 20,030 $ 27,005 $ 49,176
(a) Includes capitalized interest, property taxes, property
insurance, ground leases and certain employee costs.
Hotels Under Renovation During
2015
Primary Areas Start Date End Date
Myrtle Beach - HLT meeting space, new F&B outlet Dec-2014
Feb-2015 LAX- ES(a) public areas, F&B, meeting space Feb-2014
May-2015 Nashville - HI guestrooms, public areas, F&B Aug-2014
July-2015 New Orleans - French Quarter Chateau Lemoyne - HI
guestrooms, public areas, exterior May-2015 Dec-2015 Vinoy Resort
& Golf Club - REN meeting space, F&B, golf shop Nov-2015
Jan-2016 (a) Guestrooms renovation completed in 2013.
Supplemental Financial Data
(in thousands, except per share data)
June 30, December 31, Total Enterprise
Value 2015 2014 Common shares outstanding 143,328
124,605 Units outstanding 611 611 Combined shares and
units outstanding 143,939 125,216 Common stock price $ 9.88
$ 10.82
Market capitalization $ 1,422,117 $ 1,354,837
Series A preferred stock(a) 309,337 309,337 Series C preferred
stock(a) — 169,412 Preferred equity - Knickerbocker joint venture,
net(b) 41,029 39,370 Consolidated debt(b) 1,535,256 1,585,867
Noncontrolling interests of consolidated debt (2,928 ) (2,928 ) Pro
rata share of unconsolidated debt 11,560 17,096 Hotel
development(c) (51,191 ) (297,466 ) Outstanding proceeds from sale
of hotel(d) (16,783 ) — Cash, cash equivalents and restricted
cash(e) (129,667 ) (67,643 )
Total enterprise value (TEV) $
3,118,730 $ 3,107,882 (a) Book value based on
issue price. (b) Book value based on issue price, net of
noncontrolling interest. (c)
A portion of the Knickerbocker investment
was placed in service during the first six months of 2015.
(d) Hotel was sold June 30, 2015 and proceeds were received July 1,
2015. (e)
Restricted cash includes $6.3 million of
cash fully securing $6.3 million of outstanding debt assumed when
we purchased The Knickerbocker.
Hotel Portfolio Composition
Brand Hotels Rooms
2014 HotelOperating
Revenue(in thousands)
2014 HotelEBITDA(in
thousands)(a)
Embassy Suites Hotels 18 4,982 $ 282,866 $
94,990 Wyndham and Wyndham Grand 8 2,528 125,354 43,122 Renaissance
and Marriott 3 1,321 128,770 26,086 DoubleTree by Hilton and Hilton
3 802 45,383 15,483 Sheraton 2 673 39,639 10,622 Fairmont 1 383
53,451 10,010 Holiday Inn 2 968 51,511 8,966 Morgans and Royalton 2
285 33,895 3,314
Same-store
hotels(b) 39 11,942 $
760,869 $ 212,593 Market
San Francisco area 5 1,903 $ 139,692 $ 39,466 Boston 3 916 85,670
21,832 South Florida 3 923 55,561 17,007 Los Angeles 2 481 28,696
12,404 Myrtle Beach 2 640 41,149 12,218 Philadelphia 2 728 38,680
9,630 Tampa 1 361 49,358 9,301 New York area 3 546 48,456 7,259
Other markets 18 5,444 273,607 83,476
Same-store hotels(b) 39 11,942
$ 760,869 $ 212,593
Location Urban 17 5,310 $ 360,177 $ 97,584 Resort 9
2,733 203,370 51,679 Airport 8 2,621 136,144 43,204 Suburban 5
1,278 61,178 20,126
Same-store
hotels(b) 39 11,942 $
760,869 $ 212,593 (a) Hotel
EBITDA is more fully described on page 25. (b) Excludes The
Knickerbocker, which opened in February 2015, and two hotels held
for sale at June 30, 2015.
Hotel Operating Statistics by
Brand
Occupancy (%) Three Months Ended
Six Months Ended June 30, June 30,
2015 2014 %Variance 2015
2014 %Variance Embassy Suites Hotels 83.1 81.7 1.7
82.1 79.3 3.6 Wyndham and Wyndham Grand 81.1 77.4 4.9 75.1 70.2 7.0
Renaissance and Marriott 71.9 76.3 (5.8 ) 76.3 76.0 0.5 DoubleTree
by Hilton and Hilton 82.4 82.8 (0.5 ) 75.8 73.7 2.9 Sheraton 77.5
75.5 2.5 68.2 66.0 3.2 Fairmont 84.3 83.9 0.5 73.0 71.3 2.4 Holiday
Inn 82.0 85.1 (3.6 ) 76.1 74.8 1.6 Morgans and Royalton 87.9 91.0
(3.3 ) 80.9 85.2 (5.1 )
Same-store hotels (39)(a)
81.1 80.5 0.8 78.0 75.4
3.4 ADR ($) Three Months Ended Six Months
Ended June 30, June 30, 2015 2014
%Variance 2015 2014 %Variance Embassy
Suites Hotels 172.23 162.07 6.3 175.57 164.31 6.9 Wyndham and
Wyndham Grand 187.05 164.91 13.4 173.83 155.86 11.5 Renaissance and
Marriott 233.86 227.30 2.9 243.39 231.96 4.9 DoubleTree by Hilton
and Hilton 164.09 160.29 2.4 163.36 158.52 3.1 Sheraton 160.27
153.06 4.7 145.45 142.37 2.2 Fairmont 361.24 330.56 9.3 314.81
292.78 7.5 Holiday Inn 176.23 160.13 10.1 166.54 147.99 12.5
Morgans and Royalton 310.72 331.94 (6.4 ) 276.31 297.97 (7.3 )
Same-store hotels (39)(a) 190.42 178.94
6.4 186.24 174.91 6.5 RevPAR ($)
Three Months Ended Six Months Ended June 30,
June 30, 2015 2014 %Variance
2015 2014 %Variance Embassy Suites Hotels
143.05 132.35 8.1 144.14 130.22 10.7 Wyndham and Wyndham Grand
151.76 127.59 18.9 130.51 109.40 19.3 Renaissance and Marriott
168.13 173.47 (3.1 ) 185.73 176.20 5.4 DoubleTree by Hilton and
Hilton 135.23 132.72 1.9 123.81 116.77 6.0 Sheraton 124.15 115.62
7.4 99.16 94.03 5.4 Fairmont 304.48 277.30 9.8 229.76 208.76 10.1
Holiday Inn 144.48 136.21 6.1 126.68 110.75 14.4 Morgans and
Royalton 273.23 301.98 (9.5 ) 223.50 253.93 (12.0 )
Same-store
hotels (39)(a) 154.48 143.98 7.3
145.18 131.85 10.1 (a) Excludes The
Knickerbocker, which opened in February 2015, and two hotels held
for sale at June 30, 2015.
Hotel Operating Statistics by
Market
Occupancy (%) Three Months Ended
Six Months Ended June 30, June 30, 2015
2014 %Variance 2015 2014
%Variance San Francisco area 88.5 85.1 4.0 85.5 78.6
8.9 Boston 83.3 85.3 (2.4 ) 74.9 73.4 2.1 South Florida 83.8 84.9
(1.2 ) 88.5 88.0 0.6 Los Angeles 83.7 85.0 (1.5 ) 82.6 83.9 (1.6 )
Myrtle Beach 77.7 78.4 (0.9 ) 65.9 62.0 6.2 Philadelphia 77.8 77.8
— 63.6 66.2 (4.0 ) Tampa 84.3 84.8 (0.6 ) 86.5 85.5 1.2 New York
area 84.8 88.0 (3.6 ) 77.6 79.9 (2.9 ) Other markets 77.8 76.4 1.7
76.4 73.4 4.1
Same-store hotels (39)(a) 81.1
80.5 0.8
78.0 75.4
3.4 ADR ($) Three Months Ended
Six Months Ended June 30, June 30, 2015
2014 %Variance 2015 2014
%Variance San Francisco area 218.46 203.56 7.3 212.78 196.51
8.3 Boston 282.79 251.50 12.4 245.23 223.48 9.7 South Florida
153.74 148.46 3.6 189.14 177.73 6.4 Los Angeles 187.53 172.22 8.9
179.09 165.81 8.0 Myrtle Beach 171.84 170.84 0.6 147.79 148.21 (0.3
) Philadelphia 184.47 152.10 21.3 167.29 143.46 16.6 Tampa 210.15
194.20 8.2 231.41 210.17 10.1 New York area 256.29 265.24 (3.4 )
234.96 249.10 (5.7 ) Other markets 163.95 155.69 5.3 163.88 154.63
6.0
Same-store hotels (39)(a) 190.42
178.94 6.4
186.24 174.91
6.5 RevPAR ($) Three Months
Ended Six Months Ended June 30, June 30,
2015 2014 %Variance 2015 2014
%Variance San Francisco area 193.39 173.22 11.6 182.02
154.42 17.9 Boston 235.54 214.52 9.8 183.76 163.97 12.1 South
Florida 128.91 125.98 2.3 167.44 156.41 7.1 Los Angeles 156.94
146.34 7.2 148.01 139.19 6.3 Myrtle Beach 133.53 133.98 (0.3 )
97.38 91.94 5.9 Philadelphia 143.44 118.32 21.2 106.31 94.98 11.9
Tampa 177.09 164.67 7.5 200.18 179.62 11.4 New York area 217.42
233.33 (6.8 ) 182.29 198.94 (8.4 ) Other markets 127.48 119.01 7.1
125.24 113.46 10.4
Same-store hotels (39)(a)
154.48 143.98
7.3 145.18
131.85 10.1 (a) Excludes The
Knickerbocker, which opened in February 2015, and two hotels held
for sale at June 30, 2015.
Historical Quarterly Operating
Statistics
Occupancy (%) Q2 2014 Q3 2014
Q4 2014 Q1 2015 Q2 2015
Same-store hotels (39)(a) 80.5 80.3 72.0 74.7 81.1
ADR ($) Q2 2014 Q3 2014 Q4 2014
Q1 2015 Q2 2015 Same-store hotels
(39)(a) 178.94 179.06 175.83 181.65 190.42
RevPAR ($) Q2 2014 Q3 2014 Q4 2014
Q1 2015 Q2 2015 Same-store hotels
(39)(a) 143.98 143.71 126.57 135.78 154.48 (a)
Excludes The Knickerbocker, which opened in February 2015, and two
hotels held for sale at June 30, 2015.
Non-GAAP Financial Measures
We refer in this release to certain “non-GAAP financial
measures.” These measures, including FFO, Adjusted FFO, EBITDA,
Adjusted EBITDA, Same-store Adjusted EBITDA, Hotel EBITDA and Hotel
EBITDA margin, are measures of our financial performance that are
not calculated and presented in accordance with generally accepted
accounting principles (“GAAP”). The following tables reconcile each
of these non-GAAP measures to the most comparable GAAP financial
measure. Immediately following the reconciliations, we include a
discussion of why we believe these measures are useful supplemental
measures of our performance and the limitations of such
measures.
Reconciliation of Net Income (Loss) to
FFO and Adjusted FFO
(in thousands, except per share data)
Three Months Ended June 30, 2015
2014 Dollars Shares
Per ShareAmount
Dollars Shares
Per ShareAmount
Net income (loss) $ (3,247 ) $ 24,955 Noncontrolling
interests 322 (333 ) Preferred dividends (7,903 ) (9,678 )
Redemption of preferred stock (6,096 ) — Preferred distributions -
consolidated joint venture (359 ) (341 )
Net income (loss)
attributable to FelCor common stockholders (17,283 ) 14,603
Less: Dividends declared on unvested restricted stock (13 ) (2 )
Less: Undistributed earnings allocated to unvested restricted stock
— (6 )
Basic earnings per share data (17,296 )
140,322 $ (0.12 ) 14,595 124,169 $ 0.12 Restricted stock units —
— — 1,217 —
Diluted
earnings per share data (17,296 ) 140,322 (0.12 ) 14,595
125,386 0.12 Depreciation and amortization 28,750 — 0.21 29,082 —
0.23 Depreciation, unconsolidated entities and other partnerships
546 — — 2,700 — 0.02 Gain on sale of hotel in unconsolidated entity
(7,113 ) — (0.05 ) — — — Loss (gain) on sale of hotels, net of
noncontrolling interests in other partnerships 631 — — (15,541 ) —
(0.12 ) Other gains, net (100 ) — — (100 ) — — Noncontrolling
interests in FelCor LP (75 ) 611 — 71 614 (0.01 ) Dividends
declared on unvested restricted stock 13 — — 2 — — Undistributed
earnings allocated to unvested restricted stock — — — 6 — —
Conversion of unvested restricted stock and units — 1,535
— — 11 —
FFO 5,356
142,468 0.04 30,815 126,011 0.24 Debt extinguishment 30,823 — 0.22
25 — — Debt extinguishment, unconsolidated entities 330 — — — — —
Severance costs — — — 3 — — Variable stock compensation (72 ) — —
854 — 0.01 Redemption of preferred stock 6,096 — 0.04 — — —
Contract dispute recovery (3,717 ) — (0.03 ) — — — Pre-opening
costs, net of noncontrolling interests 523 — 0.01
1,206 — 0.01
Adjusted FFO $
39,339 142,468 $ 0.28 $ 32,903 126,011
$ 0.26
Reconciliation of Net Income to FFO and
Adjusted FFO
(in thousands, except per share data)
Six Months Ended June 30, 2015 2014
Dollars Shares
PerShareAmount
Dollars Shares
PerShareAmount
Net income $ 8,749 $ 10,119 Noncontrolling interests (4,543
) (134 ) Preferred distributions - consolidated joint venture (707
) (522 ) Redemption of preferred stock (6,096 ) — Preferred
dividends (17,581 ) (19,356 )
Net loss attributable to FelCor
common stockholders (20,178 ) (9,893 ) Less: Dividends declared
on unvested restricted stock (26 ) (3 )
Basic and diluted
earnings per share data (20,204 ) 132,465 $ (0.15 ) (9,896 )
124,158 $ (0.08 ) Depreciation and amortization 56,522 — — 0.42
58,683 — — 0.47 Depreciation, discontinued operations and
unconsolidated entities 1,258 — 0.01 5,374 — 0.04 Other gains, net
(100 ) — — (100 ) — — Gain on sale of hotel in unconsolidated
entity (7,113 ) — (0.05 ) — — — Gain on sale of hotels, net of
noncontrolling interests in other partnerships (11,249 ) — (0.09 )
(21,361 ) — (0.17 ) Noncontrolling interests in FelCor LP (89 ) 611
— (50 ) 616 — Dividends declared on unvested restricted stock 26 —
— 3 — — Conversion of unvested restricted stock and units —
1,366 — — 1,029 —
FFO
19,051 134,442 0.14 32,653 125,803 0.26 Debt extinguishment,
including discontinued operations, net of noncontrolling interests
30,895 — 0.23 276 — — Debt extinguishment, unconsolidated entities
330 — — — — — Severance costs — — — 403 — — Variable stock
compensation 925 — 0.01 1,419 — 0.01 Redemption of preferred stock
6,096 — 0.05 — — — Contract dispute recovery (3,717 ) — (0.03 ) — —
— Pre-opening costs, net of noncontrolling interests 4,047 —
0.03 2,259 — 0.02
Adjusted
FFO $ 57,627 134,442 $ 0.43 $ 37,010
125,803 $ 0.29
Reconciliation of Net Income (Loss) to
EBITDA, Adjusted EBITDA and Same-store Adjusted EBITDA
(in thousands)
Three Months Ended Six Months Ended June
30, June 30, 2015 2014 2015
2014 Net income (loss) $ (3,247 ) $ 24,955 $
8,749 $ 10,119 Depreciation and amortization 28,750 29,082 56,522
58,683 Depreciation, unconsolidated entities and other partnerships
546 2,700 1,258 5,374 Interest expense 20,284 24,509 39,770 49,751
Interest expense, discontinued operations and unconsolidated
entities 141 647 343 1,390 Noncontrolling interests in other
partnerships 247 (262 ) (4,632 ) (184 )
EBITDA 46,721
81,631 102,010 125,133 Debt extinguishment, including discontinued
operations, net of noncontrolling interests 30,823 25 30,895 276
Debt extinguishment, unconsolidated entities 330 — 330 — Gain on
sale of hotel in unconsolidated entity (7,113 ) — (7,113 ) — Loss
(gain) on sale of hotels, net of noncontrolling interests in other
partnerships 631 (15,541 ) (11,249 ) (21,361 ) Other gains, net
(100 ) (100 ) (100 ) (100 ) Amortization of fixed stock and
directors’ compensation 1,701 1,171 3,563 2,292 Severance costs — 3
— 403 Variable stock compensation (72 ) 854 925 1,419 Contract
dispute recovery (3,717 ) — (3,717 ) — Pre-opening costs, net of
noncontrolling interests 523 1,206 4,047 2,259
Adjusted EBITDA 69,727 69,249 119,591 110,321
Adjusted EBITDA from hotels disposed, held for sale and recently
opened (2,063 ) (8,798 ) (5,264 ) (16,609 )
Same-store Adjusted
EBITDA $ 67,664 $ 60,451 $ 114,327 $
93,712
Hotel EBITDA and Hotel EBITDA
Margin
(dollars in thousands)
Three Months Ended Six Months Ended June
30, June 30, 2015 2014 2015
2014 Same-store operating revenue: Room $
167,875 $ 156,470 $ 313,808 $ 284,983 Food and beverage 40,146
38,294 78,253 70,547 Other operating departments 11,571
11,017 22,220 20,805
Same-store operating
revenue(a) 219,592 205,781 414,281 376,335
Same-store
operating expense: Room 40,251 39,059 78,210 74,539 Food and
beverage 29,222 27,767 58,098 53,496 Other operating departments
4,226 5,164 8,468 9,969 Other property related costs 51,865 48,070
102,574 94,351 Management and franchise fees 8,447 7,707 16,540
14,386 Taxes, insurance and lease expense 13,821 12,926
26,251 25,175
Same-store operating
expense(a) 147,832 140,693 290,141
271,916
Hotel EBITDA $ 71,760 $ 65,088
$ 124,140 $ 104,419
Hotel EBITDA Margin 32.7 %
31.6 % 30.0 % 27.7 % (a) Excludes The Knickerbocker, which
opened in February 2015, and two hotels held for sale at June 30,
2015.
Reconciliation of Same-store Operating
Revenue and Same-store Operating Expense to Total Revenue, Total
Operating Expense and Operating Income
(in thousands)
Three Months Ended Six Months Ended June
30, June 30, 2015 2014 2015
2014 Same-store operating revenue $ 219,592 $ 205,781
$ 414,281 $ 376,335 Other revenue 5,054 1,236 5,464 1,563 Revenue
from hotels disposed, held for sale and recently opened(a) 16,457
52,498 35,053 102,966
Total
revenue 241,103 259,515 454,798 480,864 Same-store operating
expense 147,832 140,693 290,141 271,916 Consolidated hotel lease
expense(b) 2,134 13,296 4,238 23,687 Unconsolidated taxes,
insurance and lease expense (604 ) (1,985 ) (1,176 ) (3,951 )
Corporate expenses 6,530 7,647 15,103 15,472 Depreciation and
amortization 28,750 29,082 56,522 58,683 Expenses from hotels
disposed, held for sale and recently opened(a) 14,242 37,688 29,013
75,787 Other expenses 1,411 2,114 5,639 4,128
Total operating expense 200,295 228,535
399,480 445,722
Operating income $ 40,808
$ 30,980 $ 55,318 $ 35,142 (a)
Under GAAP, we include the operating performance for
disposed, held for sale and recently opened hotels in continuing
operations in our Consolidated Statements of Operations. However,
for purposes of our Non-GAAP reporting metrics, we have excluded
the results of these hotels to provide a meaningful same-store
comparison. (b) Consolidated hotel lease expense represents the
percentage lease expense of our 51% owned operating lessees. The
offsetting percentage lease revenue is included in equity in income
from unconsolidated entities.
Reconciliation of Forecasted Net Income
attributable to FelCor to Forecasted Adjusted FFO
and Adjusted EBITDA
(in millions, except per share data)
Full Year 2015 Guidance Low High
Dollars
Per Share
Amount(a)
Dollars
Per
ShareAmount(a)
Net income attributable to FelCor(b) $ 18.6 $ 24.0
Redemption of preferred stock (6.1 ) (6.1 ) Preferred dividends
(30.1 ) (30.1 )
Net income loss attributable to FelCor common
stockholders (17.6 ) $ (0.12 ) (12.2 ) $ (0.09 ) Gains on hotel
sales, net(b) (18.4 ) (18.4 ) Depreciation(c) 117.4 117.4
FFO $ 81.4 $ 0.58 $ 86.8 $ 0.62 Pre-opening costs 4.0
4.0 Redemption of preferred stock 6.1 6.1 Contract dispute recovery
(3.7 ) (3.7 ) Variable stock compensation 0.9 0.9 Early
extinguishment of debt 31.3 31.3
Adjusted FFO
$ 120.0 $ 0.86 $ 125.4 $ 0.90
Net income
attributable to FelCor(b) $ 18.6 $ 24.0 Depreciation(c)
117.4 117.4 Interest expense(c) 83.5 83.5 Preferred distributions -
consolidated joint venture 1.4 1.5
EBITDA $
220.9 $ 226.4 Amortization of stock compensation 7.0 7.0 Gains on
hotel sales, net(b) (18.4 ) (18.4 ) Pre-opening costs 4.0 4.0
Contract dispute recovery (3.7 ) (3.7 ) Variable stock compensation
0.9 0.9 Early extinguishment of debt 31.3 31.3
Adjusted EBITDA $ 242.0 $ 247.5 (a)
Weighted average shares are 139.2 million. (b) Excludes any gains
or losses on future asset or capital transactions. (c) Includes pro
rata portion of unconsolidated entities.
Substantially all of our non-current assets consist of real
estate. Historical cost accounting for real estate assets
implicitly assumes that the value of real estate assets diminishes
predictably over time. Since real estate values instead have
historically risen or fallen with market conditions, most industry
investors consider supplemental measures of performance, which are
not measures of operating performance under GAAP, to be helpful in
evaluating a real estate company’s operations. These supplemental
measures are not measures of operating performance under GAAP.
However, we consider these non-GAAP measures to be supplemental
measures of a hotel REIT’s performance and should be considered
along with, but not as an alternative to, net income (loss)
attributable to FelCor as a measure of our operating
performance.
FFO and EBITDA
The National Association of Real Estate Investment Trusts
(“NAREIT”) defines FFO as net income or loss attributable to parent
(computed in accordance with GAAP), excluding gains or losses from
sales of property, plus depreciation, amortization and impairment
losses. FFO for unconsolidated partnerships and joint ventures are
calculated on the same basis. We compute FFO in accordance with
standards established by NAREIT. This may not be comparable to FFO
reported by other REITs that do not define the term in accordance
with the current NAREIT definition or that interpret the current
NAREIT definition differently than we do.
EBITDA is a commonly used measure of performance in many
industries. We define EBITDA as net income or loss attributable to
parent (computed in accordance with GAAP) plus interest expenses,
income taxes, depreciation and amortization, and after adjustments
for unconsolidated partnerships and joint ventures. Adjustments for
unconsolidated partnerships and joint ventures are calculated to
reflect EBITDA on the same basis.
Adjustments to FFO and EBITDA
We adjust FFO and EBITDA when evaluating our performance because
management believes that the exclusion of certain additional items
provides useful supplemental information to investors regarding our
ongoing operating performance and that the presentation of Adjusted
FFO, and Adjusted EBITDA when combined with GAAP net income
attributable to FelCor, EBITDA and FFO, is beneficial to an
investor’s better understanding of our operating performance.
- Gains and losses related to
extinguishment of debt and interest rate swaps - We exclude gains
and losses related to extinguishment of debt and interest rate
swaps from FFO and EBITDA because we believe that it is not
indicative of ongoing operating performance of our hotel assets.
This also represents an acceleration of interest expense or a
reduction of interest expense, and interest expense is excluded
from EBITDA.
- Cumulative effect of a change in
accounting principle - Infrequently, the Financial Accounting
Standards Board promulgates new accounting standards that require
the consolidated statements of operations to reflect the cumulative
effect of a change in accounting principle. We exclude these
one-time adjustments in computing Adjusted FFO and Adjusted EBITDA
because they do not reflect our actual performance for that
period.
- Other transaction costs - From time to
time, we periodically incur costs that are not indicative of
ongoing operating performance. Such costs include, but are not
limited to, conversion costs, acquisition costs, pre-opening costs
and severance costs. We exclude these costs from the calculation of
Adjusted FFO and Adjusted EBITDA.
- Variable stock compensation - We
exclude the cost associated with our variable stock compensation.
This cost is subject to volatility related to the price and
dividends of our common stock that does not necessarily correspond
to our operating performance.
In addition, to derive Adjusted EBITDA, we exclude gains or
losses on the sale of depreciable assets and impairment losses
because including them in EBITDA is inconsistent with reporting the
ongoing performance of our remaining assets. Additionally, the gain
or loss on sale of depreciable assets and impairment losses
represents either accelerated depreciation or excess depreciation
in previous periods, and depreciation is excluded from EBITDA. We
also exclude the amortization of our fixed stock and directors’
compensation, which is included in corporate expenses and is not
separately stated on our statements of operations. Excluding
amortization of our fixed stock and directors’ compensation
maintains consistency with the EBITDA definition.
Hotel EBITDA and Hotel EBITDA Margin
Hotel EBITDA and Hotel EBITDA margin are commonly used measures
of performance in the hotel industry and give investors a more
complete understanding of the operating results over which our
individual hotels and brand/managers have direct control. We
believe that Hotel EBITDA and Hotel EBITDA margin are useful to
investors by providing greater transparency with respect to two
significant measures that we use in our financial and operational
decision-making. Additionally, using these measures facilitates
comparisons with other hotel REITs and hotel owners. We present
Hotel EBITDA and Hotel EBITDA margin in a manner consistent with
Adjusted EBITDA, however, we also eliminate all revenues and
expenses from continuing operations not directly associated with
hotel operations, including other income and corporate-level
expenses. We eliminate these additional items because we believe
property-level results provide investors with supplemental
information into the ongoing operational performance of our hotels
and the effectiveness of management on a property-level basis. We
also eliminate consolidated percentage rent paid to unconsolidated
entities, which is effectively eliminated by noncontrolling
interests and equity in income from unconsolidated subsidiaries,
and include the cost of unconsolidated taxes, insurance and lease
expense, to reflect the entire operating costs applicable to our
Consolidated Hotels. Hotel EBITDA and Hotel EBITDA margins are
presented on a same-store basis.
Use and Limitations of Non-GAAP Measures
We use FFO, Adjusted FFO, EBITDA, Adjusted EBITDA, Same-store
Adjusted EBITDA, Hotel EBITDA and Hotel EBITDA margin to evaluate
the performance of our hotels and to facilitate comparisons between
us and other lodging REITs, hotel owners who are not REITs and
other capital intensive companies. We use Hotel EBITDA and Hotel
EBITDA margin in evaluating hotel-level performance and the
operating efficiency of our hotel managers.
The use of these non-GAAP financial measures has certain
limitations. As we present them, these non-GAAP financial measures
may not be comparable to similar non-GAAP financial measures as
presented by other real estate companies. These measures do not
reflect certain expenses or expenditures that we incurred and will
incur, such as depreciation, interest and capital expenditures. We
compensate for these limitations by separately considering the
impact of these excluded items to the extent they are material to
operating decisions or assessments of our operating performance.
Our reconciliations to the most comparable GAAP financial measures,
and our consolidated statements of operations and cash flows,
include interest expense, capital expenditures, and other excluded
items, all of which should be considered when evaluating our
performance, as well as the usefulness of our non-GAAP financial
measures.
These non-GAAP financial measures are used in addition to and in
conjunction with results presented in accordance with GAAP. They
should not be considered as alternatives to operating profit, cash
flow from operations, or any other operating performance measure
prescribed by GAAP. These non-GAAP financial measures reflect
additional ways of viewing our operations that we believe, when
viewed with our GAAP results and the reconciliations to the
corresponding GAAP financial measures, provide a more complete
understanding of factors and trends affecting our business than
could be obtained absent this disclosure. We strongly encourage
investors to review our financial information in its entirety and
not to rely on a single financial measure.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20150728005399/en/
FelCor Lodging Trust IncorporatedStephen A. Schafer,
972-444-4912Senior Vice Presidentsschafer@felcor.com
Felcor Lodging (NYSE:FCH)
Gráfico Histórico do Ativo
De Jun 2024 até Jul 2024
Felcor Lodging (NYSE:FCH)
Gráfico Histórico do Ativo
De Jul 2023 até Jul 2024