Three months ended
Nine months ended
September 30
September 30
2002 2001 Variance
2002 2001 Variance
FAIRMONT MANAGED
HOTELS
Worldwide
RevPAR
$119.76 $116.69 2.6%
$109.16 $114.66 (4.8%)
ADR
167.19 169.36 (1.3%)
163.20 171.49 (4.8%)
Occupancy
71.6% 68.9% 2.7 points 66.9%
66.9% 0.0 points
Canada
RevPAR
$122.02 $115.82 5.4%
$93.51 $92.48 1.1%
ADR
152.72 152.08 0.4%
132.33 134.56 (1.7%)
Occupancy
79.9% 76.2% 3.7 points 70.7%
68.7% 2.0 points
U.S. and
International
RevPAR
$116.73 $117.90 (1.0%) $130.15
$145.41 (10.5%)
ADR
$192.91 200.68 (3.9%) 210.50
226.24 (7.0%)
Occupancy
60.5% 58.8% 1.7 points 61.8%
64.3% (2.5 points)
DELTA MANAGED
HOTELS
Worldwide
RevPAR
$65.37 $64.22 1.8%
$55.92 $58.03 (3.6%)
ADR
90.31 88.13 2.5%
86.13 85.29
1.0%
Occupancy
72.4% 72.9% (0.5 points) 64.9%
68.0% (3.1 points)
OWNED HOTELS
Worldwide
RevPAR
$132.09 $128.36 2.9% $120.76
$126.06 (4.2%)
ADR
191.94 193.17 (0.6%) 186.56
190.93 (2.3%)
Occupancy
68.8% 66.5% 2.3 points 64.7%
66.0% (1.3 points)
Canada
RevPAR
$146.89 $144.16 1.9% $106.46
$108.13 (1.5%)
ADR
186.90 188.71 (1.0%) 153.76
154.74 (0.6%)
Occupancy
78.6% 76.4% 2.2 points 69.2%
69.9% (0.7 points)
U.S. and International
RevPAR
$110.74 $105.49 5.0% $141.41
$152.02 (7.0%)
ADR
202.39 202.63 (0.1%) 242.84
251.49 (3.4%)
Occupancy
54.7% 52.1% 2.6 points 58.2%
60.4% (2.2 points)
Comparable hotels and resorts are considered to be properties
that were fully open under FHR management for at least the entire current
and prior period. Given the strategic importance of the acquisition of
The Fairmont Kea Lani Maui, it has been included in FHR's operating statistics
in the preceding chart on a pro forma basis as if owned since January 1,
2001. Comparable hotels and resorts statistics exclude properties under
major renovation that would have a significant adverse effect on the properties'
primary operations. For the three-month and nine-month periods ended September
30, 2002 versus the three-month and nine-month periods ended September
30, 2001, The Fairmont Southampton Princess, The Fairmont Hamilton Princess
and The Fairmont Pierre Marques have been excluded from the comparable
data because of the impact of major renovations in 2001.
1. EBITDA is defined as earnings before interest, taxes,
amortization, other income and expenses and reorganization and corporate
expenses. Management considers EBITDA to be a meaningful indicator of hotel
operations, however, it is not a defined measure of operating performance
under Canadian GAAP. FHR's calculation of EBITDA may be different than
the calculation used by other entities.
Fairmont Hotels & Resorts Inc.
Consolidated Balance Sheets
(Stated
in millions of U.S. dollars)
(Unaudited)
ASSETS
September 30 December 31
2002
2001
------------ -----------
Current assets
Cash and cash
equivalents
$ 63.8
$ 52.7
Accounts receivable
61.7
48.2
Materials
and supplies
11.6
11.6
Other
19.5
8.8
------------ -----------
156.6
121.3
Investments in partnerships
and
corporations
(note 4)
96.7
87.7
Investment in Legacy
Hotels Real Estate
Investment
Trust
69.7
56.4
Investment in land
held for sale
87.1
92.1
Property and equipment
1,288.9
1,261.9
Goodwill
123.0
106.0
Intangible assets
148.1
105.7
Other assets and
deferred charges
54.4
46.2
------------ -----------
$ 2,024.5
$ 1,877.3
------------ -----------
------------ -----------
LIABILITIES
Current liabilities
Accounts payable
and accrued
liabilities
$ 110.3
$ 118.4
Income taxes
payable
5.4
2.1
Dividends
payable
-
1.6
Current portion
of long-term debt
3.4
25.5
------------ -----------
119.1
147.6
Other liabilities
69.9
65.1
Long-term debt
327.7
245.2
Future income taxes
95.1
64.1
Non-controlling interest
26.2
49.9
------------ -----------
638.0
571.9
------------ -----------
Shareholders' equity
(note 5)
1,386.5
1,305.4
------------ -----------
$ 2,024.5
$ 1,877.3
------------ -----------
------------ -----------
Fairmont Hotels & Resorts Inc.
Consolidated Statement of Income
(Stated in millions of U.S. dollars)
(Unaudited)
Three Months ended Nine Months
ended
September 30
September 30
2002 2001
2002 2001
---------- ---------- ---------- ----------
Revenues
Hotel ownership
operations
$ 150.3 $ 138.3 $
407.5 $ 400.2
Management
operations 10.2
8.5 25.6
26.0
Income from
investments
and
other
10.9 8.0
15.2 15.6
---------- ---------- ---------- ----------
171.4 154.8
448.3 441.8
Expenses
Hotel ownership
operations
95.0 94.6
275.6 280.2
Management
operations 4.3
3.8 12.9
11.0
Other
- 2.0
0.4 3.9
---------- ---------- ---------- ----------
99.3 100.4
288.9 295.1
---------- ---------- ---------- ----------
Gains on land held
for
sale
2.1 -
6.1 9.9
---------- ---------- ---------- ----------
Operating income
before
undernoted
items
74.2 54.4
165.5 156.6
Amortization
13.9 14.0
41.9 39.0
Other (income) and
expense (note
6)
- (6.1)
(6.9) 8.2
Reorganization and
corporate
expenses
(note 7)
- 149.0
1.3 164.5
Interest expense,
net 5.0
31.5 13.5
66.4
---------- ---------- ---------- ----------
Income (loss) before
income tax
expense,
non-controlling
interest,
goodwill charges
and
discontinued
operations 55.3
(134.0) 115.7
(121.5)
---------- ---------- ---------- ----------
Income tax expense
(recovery)
Current
1.1 5.4
9.0 21.9
Future
14.2 (41.4)
22.7 (70.1)
---------- ---------- ---------- ----------
15.3 (36.0)
31.7 (48.2)
---------- ---------- ---------- ----------
Non-controlling interest
1.0 0.9
2.5 2.7
---------- ---------- ---------- ----------
Income (loss) before
goodwill charges
and
discontinued
operations 39.0
(98.9) 81.5
(76.0)
Goodwill charges
- 0.6
- 2.2
Taxes thereon
- (0.1)
- (0.4)
---------- ---------- ---------- ----------
- 0.5
- 1.8
---------- ---------- ---------- ----------
Income (loss) from
continuing operations 39.0
(99.4) 81.5 (77.8)
Income from discontinued
operations
(note 1)
- 216.2
- 923.9
---------- ---------- ---------- ----------
Net income
39.0 116.8
81.5 846.1
Preferred share dividends
- (1.3)
- (5.4)
---------- ---------- ---------- ----------
Net income available
to
common shareholders
$ 39.0 $ 115.5
$ 81.5 $ 840.7
---------- ---------- ---------- ----------
Weighted average
number
of common
shares
outstanding
(in millions)
(note 5)
Basic
77.9 79.1
78.4 78.9
Diluted
79.0 79.5
79.7 79.2
Basic earnings per
common share
Income (loss)
from
continuing
operations $ 0.50 $
(1.27) $ 1.04 $ (1.05)
Discontinued
operations $ - $
2.73 $ -
$ 11.71
Net income
$ 0.50 $ 1.46
$ 1.04 $ 10.66
Diluted earnings
per
common share
Income (loss)
from
continuing
operations $ 0.49 $
(1.27) $ 1.02 $ (1.05)
Discontinued
operations $ - $
2.72 $ -
$ 11.67
Net income
$ 0.49 $ 1.45
$ 1.02 $ 10.62
Fairmont Hotels & Resorts Inc.
Consolidated Statement of Cash Flows (Stated in millions of U.S. dollars)
(Unaudited)
Three Months ended Nine Months
ended
September 30
September 30
2002 2001
2002 2001
---------- ---------- ---------- ----------
Cash provided by
(used in)
Operating activities
Income from continuing
operations
$ 39.0 $ (99.4) $
81.5 $ (77.8)
Items not affecting
cash
Amortization and goodwill charges
13.9 14.6
41.9 41.2 Income from investments
and other
(10.9) (8.0)
(15.2) (15.6) Gains on land held for sale
(2.1) -
(6.1) (9.9)
Gain on sale of Legacy
Real Estate
Investment Trust units -
- -
(31.1)
Future income taxes 14.2
(41.5) 22.7
(70.5)
Distributions from
investments
1.2 3.5
6.3 9.1
Non-controlling interest 1.0
0.9 2.5
2.7
Write-off of capital
and other assets
- 1.9
- 40.7
Other
(3.1) (1.6)
(11.9) (33.4)
Changes in non-cash
working
capital items
(note 8) 5.4
70.3 (30.8)
23.5
Discontinued operations
- 691.6
- 2,011.4
---------- ---------- ---------- ----------
58.6 632.3
90.9 1,890.3
---------- ---------- ---------- ----------
Investing activities
Investment in hotel
partnerships
and
corporations
(10.4) (21.5)
(13.4) (23.2)
Sale of investments and properties
8.5 20.7
28.8 149.2 Additions to property and
equipment (11.6)
(31.8) (63.9)
(85.1)
Additions to land held for sale
(5.1) (2.4)
(17.5) (6.9)
Proceeds from sale
of
units in Legacy
Hotels
Real Estate
Investment Trust -
- -
53.5
Acquisitions
- -
- (234.6)
Discontinued operations
- (592.3)
- (1,407.2)
---------- ---------- ---------- ----------
(18.6) (627.3)
(66.0) (1,554.3)
---------- ---------- ---------- ----------
Financing activities
Issuance of
commercial
paper
- -
- 61.5
Repayment of commercial paper
- (501.4)
- (643.9)
Issuance of
long-term
debt
58.0 65.8
97.0 65.8
Repayment
of long-term
debt
(13.2) (436.6)
(37.9) (630.7)
Issuance of
common shares -
4.7 0.5
52.7
Repurchase
of common
shares
(71.8) -
(73.0) -
Dividends
(1.6) (60.7)
(3.2) (122.8)
Discontinued
operations -
510.3 -
668.6
---------- ---------- ---------- ----------
(28.6) (417.9)
(16.6) (548.8)
---------- ---------- ---------- ----------
Translation adjustments
0.6 (8.1)
2.8 (8.1)
---------- ---------- ---------- ----------
Increase (decrease)
in cash
12.0 (421.0)
11.1 (220.9)
---------- ---------- ---------- ----------
Cash - beginning
of period 51.8
617.4 52.7
417.3
---------- ---------- ---------- ----------
Cash - end
of period $ 63.8
$ 196.4 $ 63.8
$ 196.4
---------- ---------- ---------- ----------
---------- ---------- ---------- ----------
Represented by
Cash and
cash equivalents
63.8 196.4
63.8 196.4
Bank overdraft
- -
- -
---------- ---------- ---------- ----------
$ 63.8 $ 196.4
$ 63.8 $ 196.4
---------- ---------- ---------- ----------
---------- ---------- ---------- ----------
Fairmont Hotels & Resorts Inc.
Consolidated Statements of Retained Earnings (Deficit)
(Stated in millions of U.S. dollars)
(Unaudited)
Three Months ended Nine Months
ended
September 30
September 30
2002 2001
2002 2001
---------- ---------- ---------- ----------
Retained earnings
(deficit)
- beginning
of period
As previously
reported
$ 21.3 $ 5,284.9 $
(19.6) $ 4,745.2
Effect of change
in
accounting
for foreign
exchange on
long-term
debt (note
2)
- -
- (127.2)
---------- ---------- ---------- ----------
As restated
21.3 5,284.9
(19.6) 4,618.0
Net income
39.0 116.8
81.5 846.1
---------- ---------- ---------- ----------
60.3 5,401.7
61.9 5,464.1
Repurchase of common
shares (note
5)
(30.4) -
(30.4) -
Distribution on
reorganization
(note 1) -
(5,392.5) -
(5,392.5)
Dividends on common
shares -
(28.0) (1.6)
(86.3)
Dividends on preferred
shares
- (1.3)
- (5.4)
---------- ---------- ---------- ----------
Retained earnings
(deficit)-end
of period $ 29.9 $
(20.1) $ 29.9 $ (20.1)
---------- ---------- ---------- ----------
---------- ---------- ---------- ----------
Fairmont Hotels & Resorts Inc.
Notes to Consolidated Financial Statements
(Stated in millions of U.S. dollars)
(Unaudited)
1. Effective
October 1, 2001, Canadian Pacific Limited ("CPL") completed
a major reorganization which divided CPL into five separate public companies
- Canadian Pacific Railway Limited, CP Ships Limited, PanCanadian Energy
Corporation and Fording Inc., while retaining its investment in Canadian
Pacific Hotels & Resorts Inc. ("CPH&R").
Pursuant to the plan of arrangement approved by the shareholders and by
the court, (the "Arrangement"), CPL distributed its approximate 85% investment
in PanCanadian Petroleum Limited and its wholly owned subsidiaries, Canadian
Pacific Railway Company, CP Ships Limited and Fording Inc. to its common
shareholders. This distribution was recorded at the carrying value of the
net investment in each subsidiary. CPL retained its wholly owned subsidiary,
CPH&R, and CPL has changed its name to Fairmont Hotels & Resorts
Inc. ("FHR").
Results from the four operating businesses that were distributed have been
included in discontinued operations in the consolidated statement of income
and consolidated statement of cash flow at September 30, 2001. On
October 1, 2001, the issued and outstanding common shares of FHR were consolidated
on the basis of one new common share for four old common shares. All share
numbers, including earnings per share figures, reflect the effect of the
share consolidation applied retroactively.
2. These interim
consolidated financial statements do not include all
disclosures as required by Canadian generally accepted accounting principles
for annual consolidated financial statements and should be read in conjunction
with the audited consolidated financial statements for the year ended
December 31, 2001 presented in the annual report. The accounting policies
used in the preparation of these interim consolidated financial statements
are consistent with the accounting policies used in the December 31, 2001
audited consolidated financial statements, except as discussed below.
Foreign currency translation
Effective January 1, 2002, FHR adopted the new recommendations of the Canadian
Institute of Chartered Accountants ("CICA") with respect to accounting
for foreign currency gains and losses. This standard requires that
unrealized exchange gains and losses related to monetary foreign currency
assets and liabilities be recognized in income immediately. The requirements
of this statement were applied retroactively with restatement of prior
periods and did not have an impact on continuing operations. This change
resulted in decreased income from discontinued operations of $34.8 for
the nine months ended September 30, 2001 ($31.6 for the quarter ended September
30, 2001).
Goodwill and intangible assets
On January 1, 2002, FHR adopted the new recommendations of the CICA with
respect to goodwill and other intangible assets. Under the new recommendations,
goodwill and intangible assets with indefinite lives, including that relating
to investments accounted for under the equity method, are no longer amortized,
but are subject to impairment tests on at least an annual basis. Any impairment
of goodwill or other intangible assets is expensed in the period of impairment.
Other intangible assets with definite lives will continue to be amortized
over their estimated useful lives and are also tested for impairment. The
recommendations of this new policy were applied prospectively.
FHR has completed its impairment testing on the balance of goodwill and
intangible assets with indefinite lives as at January 1, 2002. As a result
of this testing, no impairment losses are required. Brand name is deemed
to have an indefinite life since it is expected to generate cash flows
indefinitely. Upon adoption of these recommendations, it was determined
that no reclassifications of goodwill and intangible assets were required
under CICA recommendations on business combinations.
A reconciliation of previously reported net income, earnings per share
and diluted earnings per share to the amounts adjusted for the exclusion
of goodwill and brand name amortization is as follows:
Three Months ended Nine Months
ended
September 30
September 30
2002 2001
2002 2001
---------- ---------- ---------- ----------
Reported net income
$ 39.0 $ 116.8
$ 81.5 $ 846.1
Goodwill amortization
- 0.5
- 1.8
Brand name amortization
- 0.3
- 0.8
---------- ---------- ---------- ----------
Adjusted net income
$ 39.0 $ 117.6
$ 81.5 $ 848.7
---------- ---------- ---------- ----------
Basic earnings per
share
Reported net income
$ 0.50 $ 1.46
$ 1.04 $ 10.66
Goodwill amortization
- 0.01
- 0.02
Brand name amortization
- -
- 0.01
---------- ---------- ---------- ----------
Adjusted net income
$ 0.50 $ 1.47
$ 1.04 $ 10.69
---------- ---------- ---------- ----------
Diluted earnings
per share
Reported net income
$ 0.49 $ 1.45
$ 1.02 $ 10.62
Goodwill amortization
- 0.01
- 0.02
Brand name amortization
- -
- 0.01
---------- ---------- ---------- ----------
Adjusted net income
$ 0.49 $ 1.46
$ 1.02 $ 10.65
---------- ---------- ---------- ----------
Stock-based compensation
FHR accounts for grants under its Key Employee Stock Option Plan ("KESOP")
and Directors' Stock Option Plan using the intrinsic value method of accounting
for stock-based compensation costs. Under the CICA recommendations on stock-based
compensation plans, FHR provides proforma net income and proforma earnings
per share, as if the fair value based accounting method had been used to
account for stock-based compensation for any options granted after January
1, 2002. (See note 5)
3. On September
23, 2002, FHR increased its investment in the management company,
Fairmont Hotels Inc. ("Fairmont") from 67% to 83.5%, through a share exchange
with a subsidiary of Kingdom Hotels (USA), Ltd. ("Kingdom"), an affiliate
of a trust created by Prince Alwaleed Bin Talal Bin Abdulaziz Al Saud.
Kingdom exchanged its 16.5% interest in Fairmont for shares of FHR. FHR
issued 2,875,000 shares at $24.00 per common share to Kingdom, equivalent
to approximately 3.7% of FHR's issued and outstanding shares. The acquisition
was accounted for using the step purchase method. The results of Fairmont
will continue to be included in the consolidated statements of income,
and the results related to non-controlling interest will be reduced to
16.5% from September 23, 2002. The share exchange transaction, including
related acquisition costs of approximately $0.2, was allocated as follows:
Goodwill
$ 16.7
Intangible assets
43.0
Non-controlling interest 26.2
Future taxes
(16.7)
$ 69.2
4. In September
2002, FHR invested $9.0 for a 19.9% equity interest and
management contract in the Sonoma Mission Inn & Spa in Sonoma County,
California. FHR has committed to advance a loan of $10.0 to the Sonoma
Mission Inn & Spa.
5. Shareholders'
equity
September 30 December 31
2002 2001
------------ -----------
Common shares
$ 1,187.4 $ 1,162.4
Contributed surplus
141.9 142.4
Foreign currency translation adjustments
27.3 20.2
Retained earnings (deficit)
29.9 (19.6)
------------ -----------
$ 1,386.5 $ 1,305.4
------------ -----------
The diluted weighted-average number of common shares outstanding is calculated
as follows:
Three Months ended Nine Months
ended
September 30
September 30
2002 2001
2002 2001
---------- ---------- ---------- ----------
(in millions)
(in millions)
Weighted-average
number of common
shares outstanding
- basic
77.9 79.1
78.4 78.9
Stock options
1.1 0.4
1.3 0.3
---------- ---------- ---------- ----------
Weighted-average
number of common
shares outstanding
- diluted
79.0 79.5
79.7 79.2
---------- ---------- ---------- ----------
In October 2001, the Company announced a program to repurchase in a 12-month
period, up to 10% of its outstanding shares. For the nine months ended
September 30, 2002, FHR had repurchased 3,006,800 shares (2,960,000 shares
for the third quarter) for total consideration of $73.0 ($71.8 for the
third quarter), of this cost, $42.6 ($41.4 in the third quarter) was charged
to common shares while $30.4 was charged to retained earnings. During the
nine months ended September 30, 2002, FHR issued 54,467 shares (25 shares
for the third quarter) pursuant to KESOP for total proceeds of $0.5 ($0.0
for the third quarter). At September 30, 2002, 78,569,035 common shares
were outstanding (2001 - 79,127,044).
During the nine months ended September 30, 2002, 40,000 stock options were
granted (nil for the third quarter) with an average strike price of $31.47.
All of these stock options were granted to directors pursuant to the stock
option plan resolution as described in the Arrangement circular of
CPL dated August 3, 2001 and approved at the September 26, 2001 Special
Meeting of Shareholders. Options issued under the Directors' Stock Option
Plan vest immediately, unlike the options granted in 2001 under the KESOP,
which vest over a four-year period.
Assuming FHR elected to recognize the cost of its stock-based compensation
based on the estimated fair value of stock options granted after January
1, 2002, net income and basic and diluted earnings per share would have
been:
Three Months Ended Nine Months Ended
------------------ -----------------
September 30, 2002
Reported net income
$ 39.0
$ 81.5
Net income assuming fair
value method used
$ 39.0
$ 81.1
Assuming fair value method used
Basic earnings per share
$ 0.50
$ 1.03
Diluted earnings per share
$ 0.49
$ 1.02
In calculating net income and basic and diluted earnings per share, stock
options issued prior to January 1, 2002 have been excluded from the fair
value-based accounting method.
The fair value of stock options is estimated at the date of grant using
the Black-Scholes option pricing model with the following weighted average
assumptions:
Expected dividend yield
0.2%
Expected volatility
32.0%
Risk-free interest rate
4.24%
Expected option life in years
4.0
6. Other (income)
and expense
Three Months ended Nine Months ended
September 30
September 30
2002 2001
2002 2001
---------- ---------- ---------- ----------
Brand technology
development costs $ -
$ - $
- $ 22.4
Write-off of deferred
development charges,
leasehold improvements
and equity investment -
- -
7.2
Write-off of management
contracts
- -
- 5.8
Restructuring costs
- 6.4
- 6.4
Other
- -
(6.9) 10.0
---------- ---------- ---------- ----------
- 6.4
(6.9) 51.8
Gain on sale of
Legacy units
- -
- (31.1)
Other income
- (12.5)
- (12.5)
---------- ---------- ---------- ----------
$ - $ (6.1)
$ (6.9) $ 8.2
---------- ---------- ---------- ----------
7. Corporate
expenses for 2001 of $26.4 ($10.9 for the quarter) were
costs associated with the corporate activities performed by CPL for its
subsidiaries, including CPH&R, prior to October 1, 2001. The majority
of these corporate activities have been eliminated subsequent to October
1, 2001. Reorganization expenses for 2001 were $138.1 for the three and
nine months ended September 30, 2001.
8. Changes
in non-cash working capital:
Three Months ended Nine Months ended
September 30
September 30
2002 2001
2002 2001
---------- ---------- ---------- ----------
Decrease (increase) in
current assets
Accounts receivable $ 4.1
$ 85.7 $ (13.7) $
69.5
Materials and supplies 1.2
6.5 -
5.1
Other
- 25.3
(10.8) 26.0
Increase (decrease)
in current liabilities
Accounts payable and
accrued liabilities (7.9)
(36.1) (7.6)
(51.6)
Income taxes payable 5.4
(11.1) 3.3
(16.8)
---------- ---------- ---------- ----------
2.8 70.3
(28.8) 32.2
Adjustments for
disposals and
acquisitions
2.6 -
(2.0) (8.7)
---------- ---------- ---------- ----------
$ 5.4 $ 70.3
$ (30.8) $ 23.5
---------- ---------- ---------- ----------
9. Segmented
Information
The continuing operations of FHR have five reportable operating segments
in two core business activities, ownership and management operations. The
segments are Hotel Ownership, Investment in Legacy Hotels Real Estate Investment
Trust ("Legacy"), Land Held for Sale, Fairmont Hotels Inc. ("Fairmont")
and Delta Hotels Limited ("Delta"). Hotel ownership consists of real
estate interests ranging from approximately 20% to 100% in 22 properties.
The investment in Legacy consists of an approximate 36% equity interest
in Legacy, which owns 22 hotels and resorts across Canada. Land held for
sale consists primarily of two large undeveloped land blocks in Toronto
and Vancouver. Fairmont is a luxury hotel management company and Delta
is a Canadian first class hotel management company.
The performance of all segments is evaluated primarily on operating income
before amortization, other income and expense, reorganization and corporate
expenses, interest and income taxes ("EBITDA"). Amortization, other
income and expenses, reorganization and corporate expenses and goodwill
charges are not allocated to the individual segments. All transactions
among operating segments are done at fair market value.
The following tables present revenues, EBITDA, total assets and capital
expenditures for FHR's reportable segments:
Three Months ended September 30, 2002
Ownership
Management Inter-
------------------------- -------------- segment
Land
Elimin-
Hotel
Held
ation
Owner- for
Fair- and
ship Legacy Sale(a) mont
Delta Other(b) Total
------ ------ ------- ------
------ -------- ------
Revenues
$ 154.0 $ 7.2 $ 2.1 $
11.3 $ 3.6 $ (6.8) $ 171.4
EBITDA
54.3 7.2
2.1 7.9 2.7
- 74.2
Total
assets
1,848.7 69.7 87.1
201.5 70.4 (252.9) 2,024.5
Capital
expendi-
tures
10.6 -
5.1 1.0 -
- 16.7
Three Months ended September 30, 2001
------------------------------------------------------------
Ownership
Management Inter-
------------------------- -------------- segment
Land
Elimin-
Hotel
Held
ation
Owner- for
Fair- and
ship Legacy Sale(a) mont
Delta Other(b) Total
------ ------ ------- ------
------ -------- ------
Revenues
$ 141.4 $ 4.9 $ -
$ 10.2 $ 2.9 $ (4.6) $ 154.8
EBITDA
42.2 4.9 (2.0)
7.2 2.1 -
54.4
Total
assets(c)
1,457.2 63.3 95.3
166.2 63.9 159.4 2,005.3
Capital
expendi-
tures
30.0 -
2.4 1.8
- -
34.2
Nine Months ended September 30, 2002
------------------------------------------------------------
Ownership
Management Inter-
------------------------- -------------- segment
Land
Elimin-
Hotel
Held
ation
Owner- for
Fair- and
ship Legacy Sale(a) mont
Delta Other(b) Total
------ ------ ------- ------
------ -------- ------
Revenues
$ 415.8 $ 6.9 $ 6.1 $
30.3 $ 8.6 $(19.4) $ 448.3
EBITDA
126.9 6.9 5.7
19.8 6.2 -
165.5
Total
assets
1,848.7 69.7 87.1
201.5 70.4 (252.9) 2,024.5
Capital
expendi-
tures
60.3 -
17.5 3.6
- -
81.4
Nine Months ended September 30, 2001
------------------------------------------------------------
Ownership
Management Inter-
------------------------- -------------- segment
Land
Elimin-
Hotel
Held
ation
Owner- for
Fair- and
ship Legacy Sale(a) mont
Delta Other(b) Total
------ ------ ------- ------
------ -------- ------
Revenues
$ 408.9 $ 6.9 $ 9.9
$ 30.6 $ 8.2 $ (22.7)$ 441.8
EBITDA
115.9 6.9 6.0
22.1 5.7 -
156.6
Total
assets(c)
1,457.2 63.3 95.3
166.2 63.9 159.4 2,005.3
Capital
expendi-
tures
80.3 -
6.9 4.1 0.7
- 92.0
(a)
Revenues represent gain on disposals of land held for sale.
(b)
Revenues represent management fees that are charged by Fairmont and Delta
to the hotel ownership operations, which are eliminated on consolidation
and the elimination of revenues on land held for sale. Total assets represent
corporate assets net of elimination of intersegment loans.
(c)
Total assets exclude the assets of discontinued operations.
10. Results for the
nine months ended September 30, 2002 are not necessarily indicative of
the results that may be expected for the full year due to seasonal and
short-term variations. Revenues are typically higher in the second and
third quarters versus the first and fourth quarters of the year in contrast
to fixed costs such as amortization and interest, which are not significantly
impacted by seasonal or short-term variations.
11. Certain of the
prior period figures have been reclassified to conform with the presentation
adopted for 2002. |
