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Boykin Lodging Reports Net Income Attributable to Common Shareholders
for the Year Ending 2005 of $25.0 million versus a Net Loss of $4.9 million
for the Year-earlier; Currently Owns 21 Hotels 
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CLEVELAND, March 2, 2006 - Boykin Lodging Company (NYSE: BOY), a hotel real estate investment trust, today announced financial results for the fourth quarter and year ended December 31, 2005.

Financial Highlights:

Revenue per available room (RevPAR) for the fourth quarter for hotels owned and operating as of December 31, 2005 increased 0.8% to $58.63 from last year's $58.19. The increase in RevPAR was the result of a 3.8% increase in average daily room rate to $97.96 and a 1.9 point decrease in occupancy to 59.8%.

The Company's net income attributable to common shareholders for the fourth quarter of 2005 totaled $6.3 million, or $0.35 per fully-diluted share, compared with the same period last year when net loss totaled $4.8 million, or $0.27 per share.

Funds from operations attributable to common shareholders (FFO) for the fourth quarter totaled $82,000, or $0.00 per fully diluted share, a decrease from fourth-quarter 2004 FFO of $0.7 million, or $0.04 per share. Primary contributors to the decrease in FFO included a $0.8 million decline in contribution from hotel operations as a result of lower levels of business interruption recoveries recorded and increasing insurance costs and a $0.4 million increase in corporate general and administrative expenses, all net of minority interest.

The Company's EBITDA for the fourth quarter, including the Company's share of EBITDA from unconsolidated joint venture subsidiaries, totaled $4.7 million, down from last year's fourth quarter EBITDA of $6.0 million as the result of a $1.0 million decline in contribution from hotel operations combined with a $0.5 million increase in corporate general and administrative expenses. The EBITDA change is not impacted by minority interest. FFO and EBITDA are non-GAAP financial measures that should not be considered as alternatives to any measures of operating results under GAAP. A reconciliation of these non-GAAP measures to GAAP measures is included in the financial tables accompanying this release.

The operating results of the five properties sold or divested during 2004, the two properties sold in 2005 and the joint venture which owned and leased out a third property sold in 2005 are reflected in the financial statements as discontinued operations for all periods presented.

Details of Fourth Quarter Results:

Revenues from continuing operations for the quarter ended December 31, 2005, were $45.5 million, compared with revenues of $46.6 million for the same period last year. Hotel revenues for the three months ended December 31, 2005 were $45.5 million, a 2.1% decrease from $46.5 million for the same period in 2004. Included in other hotel revenues in the fourth quarter of 2004 is $0.9 million related to business interruption insurance recoveries for the two Melbourne, Florida properties. Both hotels remained closed during the fourth quarter of 2005, and no business interruption insurance recoveries were recorded during the period.

For the comparable properties, consisting of the 17 consolidated properties owned and operated under a Taxable REIT Subsidiary (TRS) structure as of December 31, 2005, excluding hotels closed due to hurricane damage, RevPAR decreased 0.1% to $57.07 in 2005 from $57.15 in 2004. Contributing to the RevPAR decrease was a 3.4% increase in average daily room rate to $96.93 from $93.78, combined with a 2.0 point decrease in occupancy to 58.9% from 60.9%.

Hotel profit margins, defined as hotel operating profit (hotel revenues less hotel operating expenses) as a percentage of hotel revenues, of the consolidated hotels operated under the TRS structure for the fourth quarter were 21.4%, a decrease from the 22.3% hotel operating profit margin for the fourth quarter of 2004. Excluding the business interruption amounts from 2004 and the operating results of two Melbourne properties, hotel operating profit margins for the portfolio decreased 60 basis points to 21.6% from 22.2% in 2004.

Corporate general and administrative expenses increased during the fourth quarter of 2005 as we recorded an estimated excise tax of $0.4 million as during 2005 we had REIT taxable income in excess of the dividends paid during 2005. We have and anticipate that we will pay additional dividends during 2006 that will be designated as 2005 dividends; and as such, we have recorded an estimated excise tax related to this anticipated timing. These charges were partially offset by interest savings and increased interest income due to lower debt levels as a result of higher amounts of cash available and on hand.

During the fourth quarter of 2005, the Company recorded an approximate $11.5 million gain related to its share of the gain on the sale of the San Diego Hampton Inn.

Year-to-date Results:

The Company's net income attributable to common shareholders for the year ended December 31, 2005 totaled $25.0 million versus a net loss of $4.9 million for the year-earlier period. Year-to-date 2005 revenues totaled $204.5 million, compared with $203.9 for 2004. Hotel revenues for 2005 totaled $204.3 million compared to $196.0 million during 2004. Included in 2005 other hotel revenues is approximately $6.7 million of business interruption insurance recoveries related to the two closed Melbourne properties and a property which had rooms out of service as a result of a remediation project during 2003, the first half of 2004, and 2005. Included in 2004 hotel revenues are approximately $10.3 million related to business interruption insurance recoveries and the operating results of the two Melbourne properties which were open during a portion of that period. Offsetting this decrease in 2005 is the 6.8% RevPAR increase for the 17 consolidated hotels which were open throughout both 2005 and 2004. Offsetting the increases in hotel revenue is the $7.5 million decrease in condominium development and unit sales due to the completion of the White Sand Villas project in 2004.

Total hotel portfolio RevPAR increased 7.1% to $67.35 from last year's $62.86. Occupancy increased to 66.9% from 64.8% and the average daily room rate increased 3.7% to $100.64 from $97.07.

RevPAR for the comparable 17 hotels increased 6.8% to $66.54 from last year's $62.29, as occupancy rose to 66.4% from 64.5% and the average daily rate increased 3.7% to $100.24 from $96.62. During 2005, hotel profit margins of the consolidated properties owned and operated under the TRS structure increased to an average of 27.9%, compared with 26.0% for the previous year. A portion of the increased margin is the result of the recognition of the business interruption insurance recoveries during 2005 within hotel revenues. Excluding the business interruption amounts from 2005 and 2004 and the two Melbourne properties from the 2004 results, hotel operating profit margins for the portfolio increased to 26.1% from 25.1% in 2004.

As previously announced, during 2005 the Company recorded a $5.5 million impairment charge related to the reduction of the intended holding period of one property. Additionally, the unconsolidated joint venture between the Company and AEW Partners III, L.P., sold Hotel 71 in Chicago, Illinois. The Company's share of the gain on the sale of Hotel 71 approximated $10.2 million, net of minority interest, and is reflected as equity in income of unconsolidated joint ventures within the financial statements.

During 2005, the Company recorded gains on the sale/disposal of assets of approximately $12.1 million related to property casualty insurance recoveries in excess of the net book value of assets disposed for properties which were damaged by hurricanes or were involved in water infiltration remediation activity. The gain recorded related to property insurance recoveries received in excess of the net book value of assets disposed during 2004 totaled $3.4 million.

For 2005, FFO of $6.8 million, or $0.38 per fully-diluted share, was below last year's FFO of $9.7 million, or $0.56 per share. EBITDA, including the Company's share of EBITDA from unconsolidated joint venture subsidiaries, totaled $26.7 million, down from last year's EBITDA of $32.8 million.

Included in the year-to-date 2005 and 2004 net income (loss), EBITDA and FFO were $5.5 million and $4.3 million of impairment charges, respectively. Net of minority interest, these impairment charges approximated $4.7 million and $3.7 million, or $0.26 and $0.21 per share, respectively.

As a result of the property sales in 2005, the Company reduced its outstanding debt from $200.0 million at December 31, 2004 to $138.5 million as of December 31, 2005.

Capital Structure:

At December 31, 2005, Boykin had $48.0 million of cash and cash equivalents, including restricted cash, and total consolidated debt of $138.5 million. The Company's pro rata share of the debt of unconsolidated joint ventures totaled $9.1 million at December 31, 2005.

Business Update:

The Company's two hotels located in Melbourne, Florida remain closed while repairs are underway. Based upon current estimates of the availability of labor and materials, the Company expects the rebuild to be completed late in the second quarter of 2006.

The Company has commenced construction of the final phase of the redevelopment of the Pink Shell Beach Resort & Spa, a new 43-unit, beach-front condo-hotel tower named Captiva Villas. Construction of the building is expected to be completed during the first quarter of 2007.

Subsequent to year end, a joint venture in which the Company owns a 50% interest, acquired the Banana Bay Resort & Marina-Marathon for $12.0 million. The joint venture acquired the property for potential redevelopment as a condo-hotel project.

Outlook:

Based upon the current booking trends the Company anticipates first- quarter 2006 RevPAR for the portfolio will be 2.5% to 4.0% above the same period last year, with full-year 2006 RevPAR 4.0% to 6.0% above 2005. Based upon these assumptions, the Company expects a net loss ranging between $0.21 and $0.18 for the first quarter and between $0.58 and $0.45 per share for the full year. FFO is expected to range between $0.04 and $0.07 per fully-diluted share for the first quarter and $0.42 and $0.55 per share for the full year. This guidance does not incorporate any impact from property acquisition or disposition activity which may occur during 2006 and may be further impacted by potential insurance recoveries.
 

    BOYKIN LODGING COMPANY
    STATEMENTS OF OPERATIONS, FUNDS FROM OPERATIONS ATTRIBUTABLE TO COMMON
    SHAREHOLDERS, AND EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND
    AMORTIZATION
    (Unaudited, amounts in thousands)

                              Three Months Ended            Year Ended
                                 December 31,              December 31,
    OPERATING DATA:           2005         2004         2005         2004
      Revenues:
        Hotel revenues:
           Rooms           $27,861      $27,889     $128,856     $127,506
           Food and
            beverage        15,677       15,664       59,968       57,790
           Other             1,941        2,918       15,463       10,684
        Total hotel
         revenues           45,479       46,471      204,287      195,980
        Other operating
         revenue                38           84          198          380
        Revenues from
         condominium
         development and
         unit sales              -            -            -        7,541
           Total revenues   45,517       46,555      204,485      203,901

      Expenses:
        Hotel operating
         expenses:
           Rooms             7,783        7,723       32,296       32,061
           Food and
            beverage        10,427       10,076       40,577       39,309
           Other direct      1,302        1,398        5,729        5,563
           Indirect         15,229       15,532       63,136       62,661
           Management fees
            to related party 1,008        1,379        5,635        5,455
        Total hotel
         operating expenses 35,749       36,108      147,373      145,049
        Property taxes,
         insurance and other 4,006        3,455       16,680       14,442
        Cost of condominium
         development and
         unit sales              -            -            -        5,509
        Real estate related
         depreciation and
         amortization        5,415        5,744       22,291       22,217
        Corporate general
         and administrative  2,589        2,065       11,664        8,779
        Impairment of real
         estate                  -            -        5,500            -
           Total operating
            expenses        47,759       47,372      203,508      195,996

           Operating income
            (loss)          (2,242)        (817)         977        7,905

        Interest income        353          244        1,106          377
        Other income             2            -            2            8
        Interest expense    (2,714)      (3,119)     (11,586)     (13,629)
        Amortization of
         deferred financing
         costs                (451)        (364)      (1,540)      (1,367)
        Federal income taxes   (75)           -          (75)           -
        Minority interest in
         loss of joint
         ventures               38            -           38            -
        Minority interest in
         (income) loss of
         operating
         partnership         1,040          968         (620)       1,845
        Equity in earnings
         (loss) of
         unconsolidated
         joint ventures
         including gain on
         sale                  212        (240)       11,343         (814)

      Loss before gain on
       sale/disposal of
       assets and
       discontinued
       operations           (3,837)      (3,328)        (355)      (5,675)

        Gain (loss) on sale/
         disposal of assets   (617)        (177)      11,387        3,175

      Income (loss) before
       discontinued
       operations           (4,454)      (3,505)      11,032       (2,500)

        Discontinued
         operations, net of
         operating partnership
         minority interest
         income (expense) of
         $(2,086) and $13 for
         the three months ended
         December 31, 2005 and
         2004, respectively, and
         $(3,264) and $(412)
         for the years ended
         December 31, 2005
         and 2004,
         respectively       11,946          (62)      18,690        2,340

      Net income (loss)     $7,492      $(3,567)     $29,722        $(160)

        Preferred dividends (1,188)      (1,188)      (4,751)      (4,751)

      Net income (loss)
       attributable to
       common shareholders  $6,304      $(4,755)     $24,971      $(4,911)
 
 

    FUNDS FROM OPERATIONS ATTRIBUTABLE TO COMMON SHAREHOLDERS (FFO):

                              Three Months Ended            Year Ended
                                 December 31,              December 31,
                              2005         2004        2005           2004

    Net income (loss)       $7,492      $(3,567)      $29,722        $(160)
        Minority
         interest (a)        2,593         (943)        5,565          803
        Gain on sale/
         disposal of
         assets            (14,282)         (67)      (34,103)     (13,083)
       (Gain) loss on
         sale/disposal of
         individual assets
         included in
         discontinued
         operations              -           (7)        (366)           3
        Real estate related
         depreciation and
         amortization        5,415        5,744       22,291       22,217
        Real estate related
         depreciation and
         amortization included
         in discontinued
         operations             50          473          745        4,402
        Equity in (income)
         loss of unconsolidated
         joint ventures
         including gain
         on sale              (212)         240      (11,343)         814
        FFO adjustment
         related to joint
         ventures              226          169           55        1,016
        Preferred dividends
         declared           (1,188)      (1,188)      (4,751)      (4,751)

    Funds from operations
     after preferred
     dividends                 $94         $854       $7,815      $11,261
    Less: Funds from
     operations related
     to minority interest       12          114        1,047        1,519
    Funds from operations
     attributable to common
     shareholders              $82         $740       $6,768       $9,742
 

    EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTIZATION (EBITDA):

    Operating income
     (loss)                $(2,242)       $(817)        $977       $7,905
        Interest income        353          244        1,106          377
        Other income             2            -            2            8
        Real estate related
         depreciation and
         amortization        5,415        5,744       22,291       22,217
        EBITDA attributable
         to discontinued
         operations            770          186        1,336         (228)
        Company's share of
         EBITDA of
         unconsolidated
         joint ventures        405          682        1,226        2,713
        EBITDA attributable
         to joint venture
         minority interest     (31)         (72)        (192)        (185)
    EBITDA                  $4,672       $5,967      $26,746      $32,807
 

    (a) includes joint venture minority interest expense included in
        discontinued operations
 
 

    BOYKIN LODGING COMPANY
    PER-SHARE DATA
    (Unaudited)
                              For the Three                For the
                              Months Ended                Year Ended
                              December 31,                December 31,
    PER-SHARE DATA:         2005        2004           2005         2004

    Net income (loss)
     attributable to
     common shareholders
     before discontinued
     operations per share:
         Basic             $ (0.32)     $ (0.27)      $ 0.36      $ (0.42)
         Diluted           $ (0.32)     $ (0.27)      $ 0.35      $ (0.42)
    Discontinued
     operations per share:
         Basic              $ 0.68        $0.00       $ 1.06        $0.13
         Diluted            $ 0.67        $0.00       $ 1.04        $0.13
    Net income (loss)
     attributable to common
     shareholders per
     share (a):
         Basic              $ 0.36      $ (0.27)      $ 1.42      $ (0.28)
         Diluted            $ 0.35      $ (0.27)      $ 1.40      $ (0.28)
    FFO attributable to
     common shareholders
     per share:
         Basic              $ 0.00       $ 0.04       $ 0.38       $ 0.56
         Diluted            $ 0.00       $ 0.04       $ 0.38       $ 0.56

    Weighted average common
     shares outstanding
     - Basic            17,594,081   17,450,314   17,566,725   17,426,458
    Effect of dilutive
     securities:
        Common stock
         options           163,127       34,488      144,340       28,213
        Restricted share
         grants            185,886      101,819      176,233       98,530
    Weighted average
     common shares
     outstanding -
     Diluted            17,943,094   17,586,621   17,887,298   17,553,201
 

    (a)  Per share amounts may not add due to rounding.
 
 

    BOYKIN LODGING COMPANY
    SELECTED HOTEL STATISTICS and BALANCE SHEET INFORMATION
    (Unaudited, amounts in thousands except statistical data)

                               For the Three               For the
                               Months Ended              Year Ended
                               December 31,              December 31,
                             2005        2004         2005         2004
    HOTEL STATISTICS:

    All Hotels (18 hotels)
     (a) (b)
        Hotel revenues     $47,754      $47,568     $208,591     $193,911
        RevPAR              $58.63       $58.19       $67.35       $62.86
        Occupancy            59.8%        61.7%        66.9%        64.8%
        Average daily rate  $97.96       $94.34      $100.64       $97.07

    Comparable Hotels
     (17 hotels) (b) (c)
        Hotel revenues     $45,477      $45,558     $200,286     $186,475
        RevPAR              $57.07       $57.15       $66.54       $62.29
        Occupancy            58.9%        60.9%        66.4%        64.5%
        Average daily rate  $96.93       $93.78      $100.24       $96.62
 

    (a) Includes all hotels owned or partially owned by Boykin as of
        December 31, 2005, excluding properties not operating due to damage
        caused by hurricanes.
    (b) Results calculated including 35 lock-out rooms at the Radisson Suite
        Beach Resort on Marco Island.
    (c) Includes all consolidated hotels operated under the TRS structure and
        owned or partially owned by Boykin as of December 31, 2005, excluding
        properties not operating due to damage caused by hurricanes.
 
 

                                                  December 31,   December 31,
                                                       2005          2004
    SELECTED BALANCE SHEET INFORMATION:

    Assets
      Investment in hotel properties                $512,703       $503,802
      Accumulated depreciation                      (137,586)      (120,442)
      Investment in hotel properties, net            375,117        383,360
      Cash and cash equivalents including
       restricted cash                                47,989         26,543
      Accounts receivable, net                         7,307         11,690
      Investment in unconsolidated joint ventures      1,410         14,048
      Other assets                                    15,982         12,316
      Assets related to discontinued
       operations, net                                     -         29,423
    Total Assets                                    $447,805       $477,380

    Liabilities and Shareholders' Equity
      Outstanding debt                              $138,529       $199,985
      Accounts payable and accrued expenses           40,003         37,540
      Minority interest in joint ventures                777            (24)
      Minority interest in operating partnership      13,946         10,062
      Liabilities related to discontinued operations       -          2,369
      Shareholders' equity                           254,550        227,448
    Total Liabilities and Shareholders' Equity      $447,805       $477,380

Boykin Lodging Company is a real estate investment trust that focuses on the ownership of full-service, upscale commercial and resort hotels. The Company currently owns interests in 21 hotels containing a total of 5,871 rooms located in 13 states, and operating under such internationally known brands as Doubletree, Marriott, Hilton, Radisson, Embassy Suites, and Courtyard by Marriott among others. 

This news release contains "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934 regarding the Company, including those statements regarding the Company's future performance or anticipated financial results, among others.

.
Contact:

Tara Szerpicki
Investor Relations
Boykin Lodging Company
(216) 430-1333
InvestorRelations@boykinlodging.com
http://www.boykinlodging.com

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Also See: Boykin Lodging Company Sells Hotel 71 in Chicago, Illinois for $95 million / April 2005

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