La Quinta Holdings Inc. (“La Quinta” or the “Company”) (NYSE:LQ)
today reported its fourth quarter and full year results for the
period ended December 31, 2017.
Fourth Quarter 2017 Highlights
- Grew system-wide comparable RevPAR 3.4 percent;
excluding the owned hotels significantly impacted by Hurricanes
Irma and Harvey and the owned hotels undergoing significant
renovation, system-wide RevPAR grew 5.6 percent
- Increased franchise and other fee-based revenue 5.1
percent
- System-wide RevPAR Index decreased by 112 basis points;
excluding the owned hotels significantly impacted by Hurricanes
Irma and Harvey and the owned hotels undergoing significant
renovation, system-wide RevPAR Index grew nearly 100 basis
points
- Opened 12 franchise hotels, totaling over 1,000 rooms,
including the 10th location in Mexico
- Increased franchise pipeline to 261 hotels,
representing approximately 24,500 additional rooms, and continued
to expand the brand’s footprint with 21 new franchise agreements
including key locations in downtown Los Angeles and downtown
Spokane, Sacramento, Atlanta and Tula de Allende,
Mexico
- Reported Net Income of $121.2 million, including
approximately $132 million of income tax benefit related to recent
tax legislation, and Adjusted Net Loss of $6.4
million
- Generated Net Income per Share of $1.03, including
$1.13 related to the income tax benefit of recent tax legislation,
and Adjusted Net Loss per Share was $0.05
Full Year 2017 Highlights
- Grew system-wide comparable RevPAR 2.9 percent;
excluding the owned hotels significantly impacted by Hurricanes
Irma and Harvey, and the owned hotels undergoing significant
renovation, system-wide RevPAR grew 4.4 percent
- Increased franchise and other fee-based revenue 7.6
percent
- System-wide comparable RevPAR Index increased by 138
basis points; excluding the owned hotels significantly impacted by
Hurricanes Irma and Harvey, and the owned hotels undergoing
significant renovation, system-wide RevPAR Index grew nearly 200
basis points
- Opened 36 franchise hotels representing 3,100 rooms and
grew the number of rooms in the development pipeline by 6
percent
- Generated $326.9 million of Total Adjusted
EBITDA
- Reported Net Income of $152.0 million, including
approximately $132 million of income tax benefit related to recent
tax legislation, and Adjusted Net Income of $34.4
million
- Generated Net Income per Share of $1.30, including
$1.13 related to the income tax benefit of recent tax legislation,
and Adjusted Earnings per Share was $0.29
- Completed the construction phase of 27 renovations as
part of the Company’s owned hotel repositioning effort, with an
additional 11 projects finishing the construction phase in January
of 2018
Overview
“2017 was an exciting year for La Quinta. We delivered
impressive gains in RevPAR and guest satisfaction scores, took back
market share, and continued to build momentum as we executed on our
key strategic initiatives to deliver a consistent product, to
consistently deliver an outstanding guest experience and to drive
engagement with our brand,” said Keith A. Cline, President and
Chief Executive Officer of La Quinta. “We completed the
significant renovation of 27 owned hotels in our repositioning
program and are encouraged by their early performance as the
properties are being re-introduced within their respective
markets. We also added to an already-strong pipeline that
will allow La Quinta to further expand its reach into new markets
and take advantage of the brand’s unique growth opportunity in the
industry. We achieved all of this despite the disruption we
experienced in the fourth quarter due to damage caused by the
hurricanes, especially in Florida where Hurricane Irma had, and
continues to have, a significant impact on our business.”
Mr. Cline continued, “Looking ahead, 2018 is going to be a year
of realizing the benefits of our investments, hurricane recovery,
and transitioning the brand. As we progress through the year,
we will have more repositioned hotels with construction completed
and ramping up as they are reintroduced to their markets – building
on the positive early results we have already seen. Rooms out
of service at hurricane-impacted hotels will come back on line
repaired and refreshed. And we are continuing our work to
effect the spin-off of our owned hotel assets as CorePoint Lodging
as well as the sale of our franchise and management business to
Wyndham Hotel Group. These are exciting opportunities for the
La Quinta brand, which we believe will continue to grow and thrive,
and for our owned hotel portfolio as it moves forward as CorePoint
Lodging, all of which we believe will yield long-term benefits to
our stakeholders.”
Financial Overview
For the fourth quarter of 2017, the Company grew system-wide
comparable RevPAR 3.4 percent over the same period of 2016, driven
by 8.1 percent growth in its franchise locations and a 2.0 percent
decline in its owned hotels. For the full year 2017, the Company
grew system-wide comparable RevPAR 2.9 percent over 2016, driven by
5.3 percent growth in its franchise locations and 20 basis points
of growth in its owned hotels. Excluding the impact of the
owned hotels undergoing significant renovation as part of the
repositioning effort and the owned hotels affected by Hurricanes
Harvey and Irma, system-wide comparable RevPAR increased 5.6
percent in the fourth quarter and 4.4 percent for the full year
2017. The Company grew franchise and other fee-based revenue 5.1
percent in the fourth quarter of 2017, and 7.6 percent for the full
year, over the same periods of 2016.
For the fourth quarter of 2017, the Company reported net income
of $121.2 million, including approximately $132 million of income
tax benefit related to tax reform, and Adjusted Net Loss of $6.4
million. Net Income per Share was $1.03, including approximately
$1.13 related to changes in tax legislation, and Adjusted Loss per
Share was $0.05. For the full year 2017, the Company reported
net income of $152.0 million and Adjusted Net Income of $34.4
million. Net Income per Share was $1.30 and Adjusted Earnings per
Share was $0.29.
Total Adjusted EBITDA for the fourth quarter of 2017 was $60.2
million and for the full year 2017 was $326.9 million. Total
Adjusted EBITDA in both periods, as compared to the prior year
periods, was affected by the sale of owned hotels in 2016 and early
2017. These hotels contributed revenues of approximately $3.0
million and Total Adjusted EBITDA of approximately $1 million in
the fourth quarter of 2016, and approximately $29 million of
revenues and Total Adjusted EBITDA of $9 million for the full year
2016, which did not recur in 2017. Total Adjusted EBITDA was also
impacted by competitive wage pressures as well as an elevated
presence of third-party booking agents in the Company’s channel mix
as compared to the prior year.
Hurricanes Harvey and Irma had a significant impact on the
Company’s business, ultimately lifting the performance at the
franchise hotels, but creating significant challenges for certain
owned hotels, particularly those in Florida affected by Hurricane
Irma. The positive impact of the hurricanes on the franchise hotels
and the negative impact of the hurricanes on the owned hotels was
greater in the fourth quarter than originally anticipated.
The Company estimates that the impact of the hurricanes on fourth
quarter results was a reduction of approximately $6 million in
Total Adjusted EBITDA.
The Company’s system-wide portfolio, as of December 31,
2017, is located across 48 states in the U.S., as well as in
Canada, Mexico, Honduras and Colombia. The portfolio includes:
|
|
December 31, 2017 |
|
|
December 31, 2016 |
|
|
|
# of hotels |
|
|
# of rooms |
|
|
# of hotels |
|
|
# of rooms |
|
Owned (1) |
|
|
316 |
|
|
|
40,400 |
|
|
|
321 |
|
|
|
41,000 |
|
Joint Venture |
|
|
1 |
|
|
|
200 |
|
|
|
1 |
|
|
|
200 |
|
Franchised(2) |
|
|
585 |
|
|
|
47,800 |
|
|
|
566 |
|
|
|
46,000 |
|
Totals |
|
|
902 |
|
|
|
88,400 |
|
|
|
888 |
|
|
|
87,200 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) As of December 31, 2017 and 2016, Owned
included three hotels (400 rooms) and five hotels (700 rooms),
respectively, designated as assets held for sale, which are subject
to definitive purchase agreements (2) As of
December 31, 2017 and 2016, Franchised included three hotels (400
rooms) and five hotels (600 rooms), respectively, under temporary
franchise agreements related to formerly owned hotels which are in
the process of leaving the system
The results of operations for the Company for the three months
ended December 31, 2017 and 2016 include the following
highlights ($ in thousands, except per share amounts):
|
Three Months Ended
December 31, |
|
|
|
2017 (1) |
|
|
2016 (1) |
|
|
% Change |
|
|
Total Revenue |
$ |
214,279 |
|
|
$ |
222,616 |
|
|
|
-3.7 |
% |
|
Franchise and
Management Segment Adj. EBITDA |
|
27,198 |
|
|
|
27,585 |
|
|
|
-1.4 |
% |
|
Owned Hotels Segment
Adj. EBITDA |
|
41,389 |
|
|
|
51,382 |
|
|
|
-19.4 |
% |
|
Total Adj. EBITDA |
|
60,193 |
|
|
|
69,933 |
|
|
|
-13.9 |
% |
|
Total Adj. EBITDA
margin |
|
28.1 |
% |
|
|
31.4 |
% |
|
|
|
|
|
Operating Income |
|
4,890 |
|
|
|
22,214 |
|
|
|
-78.0 |
% |
|
Operating Income
Margin |
|
2.3 |
% |
|
|
10.0 |
% |
|
|
|
|
|
Adj. Operating
Income |
|
12,362 |
|
|
|
23,716 |
|
|
|
-47.9 |
% |
|
Adj. Operating Income
Margin |
|
5.8 |
% |
|
|
10.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) 2016 results include approximately $3 million of
total revenues and approximately $1 million of Total Adjusted
EBITDA from hotels sold in 2016 and 2017
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Three Months Ended |
|
|
|
|
|
|
December 31, 2017 |
|
|
December 31, 2016 |
|
|
% Change |
|
|
|
NetIncome |
|
|
DilutedEPS |
|
|
NetIncome |
|
|
DilutedEPS |
|
|
NetIncome |
|
DilutedEPS |
|
Net Income Attributable
to La Quinta Holdings’ stockholders |
|
$ |
121,175 |
|
|
$ |
1.03 |
|
|
$ |
(28 |
) |
|
$ |
— |
|
|
NM |
(1) |
|
NM |
(1) |
|
Adjusted Net (Loss)
Income Attributable to La Quinta Holdings’ stockholders |
|
$ |
(6,418 |
) |
|
$ |
(0.05 |
) |
|
$ |
873 |
|
|
$ |
0.01 |
|
|
NM |
(1) |
|
NM |
(1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Change in terms of percentage is not
meaningful
The results of operations for the Company for the years ended
December 31, 2017 and 2016 include the following highlights ($
in thousands, except per share amounts):
|
Years Ended December 31, |
|
|
|
2017 (1) |
|
|
2016 (1) |
|
|
% Change |
|
|
Total Revenue |
$ |
980,630 |
|
|
$ |
1,006,254 |
|
|
|
-2.5 |
% |
|
Franchise and
Management Segment Adj. EBITDA |
|
118,516 |
|
|
|
116,806 |
|
|
|
1.5 |
% |
|
Owned Hotels Segment
Adj. EBITDA |
|
250,344 |
|
|
|
279,536 |
|
|
|
-10.4 |
% |
|
Total Adj. EBITDA |
|
326,872 |
|
|
|
360,378 |
|
|
|
-9.3 |
% |
|
Total Adj. EBITDA
margin |
|
33.3 |
% |
|
|
35.8 |
% |
|
|
|
|
|
Operating Income |
|
120,772 |
|
|
|
78,464 |
|
|
|
53.9 |
% |
|
Operating Income
Margin |
|
12.3 |
% |
|
|
7.8 |
% |
|
|
|
|
|
Adj. Operating
Income |
|
144,878 |
|
|
|
177,814 |
|
|
|
-18.5 |
% |
|
Adj. Operating Income
Margin |
|
14.8 |
% |
|
|
17.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) 2016 results include approximately $29
million of total revenues and approximately $9 million of Total
Adjusted EBITDA from hotels sold in 2016 and 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended |
|
|
Year Ended |
|
|
|
|
|
|
|
December 31, 2017 |
|
|
December 31, 2016 |
|
|
% Change |
|
|
|
|
NetIncome |
|
|
DilutedEPS |
|
|
Net(Loss)Income |
|
|
DilutedEPS |
|
|
Net(Loss)Income |
|
|
DilutedEPS |
|
|
Net Income (Loss)
Attributable to La Quinta Holdings’ stockholders |
|
$ |
151,965 |
|
|
$ |
1.30 |
|
|
$ |
(1,288 |
) |
|
$ |
(0.01 |
) |
|
NM |
|
(1) |
|
NM |
|
(1) |
|
Adjusted Net Income
Attributable to La Quinta Holdings’ stockholders |
|
$ |
34,353 |
|
|
$ |
0.29 |
|
|
$ |
58,322 |
|
|
$ |
0.49 |
|
|
|
-41.1 |
% |
|
|
-40.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Change in terms of percentage is not
meaningful
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comparable hotel statistics |
|
ThreeMonthsEndedDecember 31,2017 |
|
|
VarianceThreeMonthsEndedDecember 31,2017
vs. 2016 |
|
|
|
Year EndedDecember 31,2017 |
|
|
Varianceyear endedDecember 31,2017 vs.
2016 |
|
|
Owned hotels |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Occupancy |
|
|
58.9 |
% |
|
|
-185 |
|
bps |
|
|
64.9 |
% |
|
|
-58 |
|
bps |
ADR |
|
$ |
82.01 |
|
|
|
1.1 |
|
% |
|
$ |
85.53 |
|
|
|
1.1 |
|
% |
RevPAR |
|
$ |
48.33 |
|
|
|
-2.0 |
|
% |
|
$ |
55.54 |
|
|
|
0.2 |
|
% |
Franchised hotels |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Occupancy |
|
|
66.2 |
% |
|
|
288 |
|
bps |
|
|
69.2 |
% |
|
|
218 |
|
bps |
ADR |
|
$ |
91.83 |
|
|
|
3.4 |
|
% |
|
$ |
95.20 |
|
|
|
2.0 |
|
% |
RevPAR |
|
$ |
60.79 |
|
|
|
8.1 |
|
% |
|
$ |
65.91 |
|
|
|
5.3 |
|
% |
System-wide |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Occupancy |
|
|
62.6 |
% |
|
|
53 |
|
bps |
|
|
67.1 |
% |
|
|
81 |
|
bps |
ADR |
|
$ |
87.24 |
|
|
|
2.5 |
|
% |
|
$ |
90.55 |
|
|
|
1.7 |
|
% |
RevPAR |
|
$ |
54.60 |
|
|
|
3.4 |
|
% |
|
$ |
60.75 |
|
|
|
2.9 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ThreeMonthsEndedDecember 31,2017 |
|
|
Variance threemonths endedDecember 31,2017 vs.
2016 |
|
|
Year EndedDecember 31,2017 |
|
|
Variance yearendedDecember 31,2017 vs.
2016 |
RevPAR Index(1) |
|
|
93.5 |
% |
|
-112
bps |
|
|
|
95.6 |
% |
|
138
bps |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Information based on the
STR competitive set of hotels existing as of December 31, 2017
Development
During the fourth quarter of 2017, the Company opened a total of
12 franchised hotels (over 1,000 rooms) and terminated three
franchised hotels, resulting in a net increase of nine open and
operating franchised hotels during the fourth quarter. For
the full year 2017, the Company opened a total of 36 franchised
hotels, including one temporary franchise hotel, and had 17
terminations including two temporary hotels, resulting in a net
increase of 19 open and operating franchised hotels. The elevated
level of franchise terminations was in keeping with the Company’s
overall strategy to drive consistency in its product. As of
December 31, 2017, the Company had a pipeline of 261 franchised
hotels totaling approximately 24,500 rooms, to be located in the
United States, Mexico, Colombia, Nicaragua, Guatemala, Chile, and
El Salvador.
Owned Hotel Portfolio
As of December 31, 2017, the Company had three hotels held for
sale. During the fourth quarter of 2017, the Company closed on the
sale of one hotel and entered into an agreement to sell an owned
hotel located in Oakbrook Terrace, Illinois. In addition, during
the fourth quarter, construction progressed on the portfolio of
approximately 50 owned hotels which the Company believes have the
opportunity to be repositioned upward within their markets in order
to drive enhanced guest experience and revenue growth. As of the
end of 2017, 27 of these hotels had completed the construction
phase of the project and are now in the process of being
reintroduced to their markets with encouraging early results.
Balance Sheet and Liquidity
As of December 31, 2017, the Company had approximately $1.7
billion of outstanding indebtedness with a weighted average
interest rate of approximately 4.5%, including the impact of an
interest rate swap. Total cash and cash equivalents was
$140.8 million as of December 31, 2017.
Outlook
On January 18, 2018, Wyndham Worldwide Corporation (“Wyndham”)
and La Quinta announced that they entered into a definitive
agreement under which Wyndham will acquire La Quinta’s franchise
and management business for $1.95 billion in cash. The
acquisition is expected to close in the second quarter of 2018,
immediately following completion of the planned taxable spin-off of
La Quinta’s owned real estate assets into a new publicly-traded
real estate investment trust (the “Spin”), CorePoint Lodging
Inc. (“CorePoint Lodging”).
Given the expected timeline to close these transactions, La
Quinta is not providing guidance for 2018. Near the time of
the Spin, management of CorePoint Lodging expects to conduct
investor education meetings during which, among other items,
financial and strategic outlooks will be provided.
Webcast and Conference Call
The Company will hold a conference call with prepared remarks
for investors and other interested parties beginning at 5:30
p.m. Eastern Time on Wednesday, February 28, 2018.
Given the anticipated timing of the planned separation of the
Company’s owned real estate assets, and the pending acquisition of
the Company’s franchise and management business by Wyndham, the
Company will not be hosting a question and answer session during
the call. The conference call may be accessed in listen-only
mode by dialing (844) 395-9252, or (478) 219-0505 for international
participants, and enter passcode 7975379.
Listeners may also access the live call via webcast by visiting
the Company's investor relations website
at www.lq.com/investorrelations. You are encouraged to dial
into the call or link to the webcast at least fifteen minutes prior
to the scheduled start time. The replay of the call will be
available from approximately 8:00 a.m. Eastern
Time on March 1, 2018 through midnight Eastern
Time on March 8, 2018. To access the replay, the domestic
dial-in number is (855) 859-2056, the international dial-in number
is (404) 537-3406, and the passcode is 7975379. The archive of the
webcast will be available on the Company's website for a limited
time.
Forward-Looking Statements
The foregoing contains “forward-looking
statements” within the meaning of the Private Securities Litigation
Reform Act of 1995. We intend for these forward-looking statements
to be covered by the safe harbor provisions of the federal
securities laws relating to forward-looking statements. These
forward-looking statements include statements relating to the
expected timing, completion and effects of the proposed merger,
separation and Spin, as well as other statements representing
management’s beliefs about, future events, transactions,
strategies, operations and financial results, including, without
limitation, our expectations with respect to the costs and other
anticipated financial impacts of the Spin and merger; future
financial and operating results of CorePoint Lodging and La Quinta;
the ability of La Quinta, CorePoint Lodging and Wyndham to complete
the contemplated financing transactions and reorganizations in
connection with the merger and the Spin; La Quinta’s plans,
objectives, expectations and intentions with respect to future
operations and services; required approvals to complete the merger
and the Spin by our stockholders and by governmental regulatory
authorities, and the timing and conditions for such approvals; the
stock price of CorePoint Lodging following the consummation of the
transactions; the stock price of La Quinta prior to the
consummation of the transactions; and the satisfaction of the
closing conditions to the proposed merger and the Spin. Such
forward-looking statements often contain words such as “assume,”
“will,” “anticipate,” “believe,” “predict,” “project,” “potential,”
“contemplate,” “plan,” “forecast,” “estimate,” “expect,” “intend,”
“is targeting,” “may,” “should,” “would,” “could,” “goal,” “seek,”
“hope,” “aim,” “continue” and other similar words or expressions or
the negative thereof or other variations thereon. Forward-looking
statements are made based upon management’s current expectations
and beliefs and are not guarantees of future performance. Such
forward-looking statements involve numerous assumptions, risks and
uncertainties that may cause actual results to differ materially
from those expressed or implied in any such statements. Our actual
business, financial condition or results of operations may differ
materially from those suggested by forward-looking statements as a
result of risks and uncertainties which include, among others,
those risks and uncertainties described in any of our filings with
the SEC. You are urged to carefully consider all such factors.
Although it is believed that the expectations reflected in such
forward-looking statements are reasonable and are expressed in good
faith, such expectations may not prove to be correct and persons
reading this communication are therefore cautioned not to place
undue reliance on these forward-looking statements which speak only
to expectations as of the date of this communication. We do not
undertake or plan to update or revise forward-looking statements to
reflect actual results, changes in plans, assumptions, estimates or
projections, or other circumstances occurring after the date of
this communication, even if such results, changes or circumstances
make it clear that any forward-looking information will not be
realized. If we make any future public statements or disclosures
which modify or impact any of the forward-looking statements
contained in or accompanying this communication, such statements or
disclosures will be deemed to modify or supersede such statements
in this communication.
Additional Information and Where to Find It
This communication does not constitute an offer to buy or sell
or the solicitation of an offer to buy or sell any securities or a
solicitation of any vote or approval. This communication relates to
a proposed acquisition of La Quinta by Wyndham. In connection with
this proposed acquisition, La Quinta may file one or more proxy
statements or other documents with the Securities and Exchange
Commission (the “SEC”). This communication is not a substitute for
any proxy statement or other document La Quinta may file with the
SEC in connection with the proposed transaction. INVESTORS AND
SECURITY HOLDERS OF LA QUINTA ARE URGED TO READ THE PROXY STATEMENT
AND OTHER DOCUMENTS THAT MAY BE FILED WITH THE SEC CAREFULLY AND IN
THEIR ENTIRETY IF AND WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL
CONTAIN IMPORTANT INFORMATION. Any definitive proxy statement(s)
(if and when available) will be mailed to stockholders of La
Quinta. Investors and security holders will be able to obtain free
copies of these documents (if and when available) and other
documents filed with the SEC by La Quinta through the website
maintained by the SEC at http://www.sec.gov. Copies of the
documents filed with the SEC by La Quinta will be available free of
charge on La Quinta’s internet website at www.lq.com or upon
written request to: Secretary, La Quinta Holdings Inc., 909 Hidden
Ridge, Suite 600, Irving, TX 75038, or by telephone at (214)
492-6600.
Participants in SolicitationLa Quinta, its
directors and certain of its executive officers may be considered
participants in the solicitation of proxies in connection with the
proposed transaction. Information regarding the persons who may,
under the rules of the SEC, be deemed participants in such
solicitation in connection with the proposed merger will be set
forth in the proxy statement if and when it is filed with the SEC.
Information about the directors and executive officers of La Quinta
is set forth in its Annual Report on Form 10-K for the fiscal year
ended December 31, 2016, which was filed with the SEC on
March 1, 2017, its proxy statement for its 2017 annual meeting
of stockholders, which was filed with the SEC on April 7,
2017, its Quarterly Reports on Form 10-Q for the quarterly periods
ended March 31, 2017, June 30, 2017 and September 30, 2017
which were filed with the SEC on May 5, 2017, August 7, 2017
and November 2, 2017, respectively, and its Current Reports on
Form 8-K, which were filed with the SEC on January 18, 2017,
February 28, 2017, May 3, 2017, May 23, 2017, July 26, 2017, August
7, 2017, September 7, 2017, November 1, 2017, January 18, 2018 and
February 2, 2018.
These documents can be obtained free of charge from the sources
indicated above. Additional information regarding the participants
in the proxy solicitation and a description of their direct and
indirect interests, by security holdings or otherwise, will be
contained in the proxy statement and other relevant materials to be
filed with the SEC when they become available.
La Quinta Holdings Inc. 909 Hidden Ridge, Suite
600 Irving, Texas 75038 Tel. 214-492-6600 www.lq.com
Non-GAAP Financial Measures
The Company refers to certain non-GAAP financial measures in
this press release including Total Adjusted EBITDA, Total Adjusted
EBITDA margins, Segment Adjusted EBITDA, Adjusted Net Income,
Adjusted Operating Income and Adjusted Earnings Per Share. Please
see the schedules to this press release for additional information
and reconciliations of such non-GAAP financial measures for
historical periods.
About La Quinta Holdings Inc.
La Quinta Holdings Inc. (LQ) is a leading owner, operator and
franchisor of select-service hotels primarily serving the
upper-midscale and midscale segments. The Company’s owned and
franchised portfolio consists of approximately 900 properties
representing over 87,500 rooms located in 48 states in the U.S.,
and in Canada, Mexico, Honduras and Colombia. These properties
operate under the La Quinta Inn & Suites®™, La Quinta Inn®™ and
LQ Hotel®™ brands. La Quinta’s team is committed to providing
guests with a refreshing and engaging experience. For more
information, please visit: www.LQ.com.
From time to time, La Quinta may use its website as a
distribution channel of material company information. Financial and
other important information regarding the Company is routinely
accessible through and posted on its website at
www.lq.com/investorrelations. In addition, you may automatically
receive email alerts and other information about La Quinta when you
enroll your email address by visiting the Email Alerts section at
www.lq.com/investorrelations.
Contacts: Investor
RelationsKristin
Hays214-492-6896investor.relations@laquinta.com
MediaTeresa
Ferguson214-492-6937Teresa.Ferguson@laquinta.com
|
LA QUINTA HOLDINGS INC. |
BALANCE SHEETS |
(in thousands, except share data) |
|
|
|
|
|
|
|
|
|
December 31, 2017 |
|
|
December 31, 2016 |
|
ASSETS |
|
|
|
|
|
|
|
|
Current
Assets: |
|
|
|
|
|
|
|
|
Cash and
cash equivalents |
|
$ |
140,849 |
|
|
$ |
160,596 |
|
Accounts
receivable, net of allowance for doubtful accounts of $4,296 and
$4,022 |
|
|
66,183 |
|
|
|
45,337 |
|
Assets
held for sale |
|
|
8,706 |
|
|
|
29,544 |
|
Other
current assets |
|
|
12,015 |
|
|
|
9,943 |
|
Total Current Assets |
|
|
227,753 |
|
|
|
245,420 |
|
Property and equipment,
net of accumulated depreciation |
|
|
2,506,523 |
|
|
|
2,456,780 |
|
Intangible assets, net
of accumulated amortization |
|
|
175,982 |
|
|
|
177,002 |
|
Other non-current
assets |
|
|
42,838 |
|
|
|
13,321 |
|
Total Non-Current Assets |
|
|
2,725,343 |
|
|
|
2,647,103 |
|
Total Assets |
|
$ |
2,953,096 |
|
|
$ |
2,892,523 |
|
LIABILITIES AND EQUITY |
|
|
|
|
|
|
|
|
Current
Liabilities: |
|
|
|
|
|
|
|
|
Current
portion of long-term debt |
|
$ |
17,514 |
|
|
$ |
17,514 |
|
Accounts
payable |
|
|
48,757 |
|
|
|
38,130 |
|
Accrued
expenses and other liabilities |
|
|
59,587 |
|
|
|
64,581 |
|
Accrued
payroll and employee benefits |
|
|
52,113 |
|
|
|
38,467 |
|
Accrued
real estate taxes |
|
|
20,782 |
|
|
|
21,400 |
|
Total Current Liabilities |
|
|
198,753 |
|
|
|
180,092 |
|
Long-term debt |
|
|
1,670,447 |
|
|
|
1,682,436 |
|
Other long-term
liabilities |
|
|
21,833 |
|
|
|
29,130 |
|
Deferred tax
liabilities |
|
|
233,765 |
|
|
|
343,028 |
|
Total Liabilities |
|
|
2,124,798 |
|
|
|
2,234,686 |
|
Commitments and
Contingencies |
|
|
|
|
|
|
|
|
Equity: |
|
|
|
|
|
|
|
|
Preferred Stock, $0.01
par value; 100,000,000 shares authorized and none outstanding
as of December 31, 2017 and December 31, 2016 |
|
$ |
— |
|
|
$ |
— |
|
Common Stock, $0.01 par
value; 2,000,000,000 shares authorized at December 31, 2017
and December 31, 2016; 132,478,073 shares issued and
117,345,996 shares outstanding as of December 31, 2017
and 131,750,715 shares issued and 116,790,470 shares
outstanding as of December 31, 2016 |
|
|
1,325 |
|
|
|
1,318 |
|
Additional
paid-in-capital |
|
|
1,181,639 |
|
|
|
1,165,651 |
|
Accumulated
deficit |
|
|
(144,041 |
) |
|
|
(296,006 |
) |
Treasury stock at cost,
15,132,077 shares at December 31, 2017 and 14,960,245 shares
at December 31, 2016 |
|
|
(212,461 |
) |
|
|
(209,523 |
) |
Accumulated other
comprehensive loss |
|
|
(760 |
) |
|
|
(6,372 |
) |
Noncontrolling
interests |
|
|
2,596 |
|
|
|
2,769 |
|
Total Equity |
|
|
828,298 |
|
|
|
657,837 |
|
Total Liabilities and Equity |
|
$ |
2,953,096 |
|
|
$ |
2,892,523 |
|
|
|
|
|
|
|
|
|
|
|
LA QUINTA HOLDINGS INC. |
STATEMENTS OF OPERATIONS |
(in thousands) |
|
|
|
|
|
|
|
|
|
Three Months
EndedDecember 31, |
|
|
Year Ended December 31, |
|
|
|
2017 |
|
|
2016 |
|
|
2017 |
|
|
2016 |
|
|
|
(unaudited) |
|
|
|
|
|
|
|
|
|
REVENUES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Room
revenues |
|
$ |
175,877 |
|
|
$ |
185,880 |
|
|
$ |
819,547 |
|
|
$ |
855,302 |
|
Franchise
and other fee-based revenues |
|
|
27,605 |
|
|
|
26,272 |
|
|
|
114,600 |
|
|
|
106,468 |
|
Other
hotel revenues |
|
|
4,289 |
|
|
|
4,590 |
|
|
|
18,972 |
|
|
|
19,334 |
|
|
|
|
207,771 |
|
|
|
216,742 |
|
|
|
953,119 |
|
|
|
981,104 |
|
Brand
marketing fund revenues from franchised properties |
|
|
6,508 |
|
|
|
5,874 |
|
|
|
27,511 |
|
|
|
25,150 |
|
Total
Revenues |
|
|
214,279 |
|
|
|
222,616 |
|
|
|
980,630 |
|
|
|
1,006,254 |
|
OPERATING
EXPENSES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Direct
lodging expenses |
|
|
101,507 |
|
|
|
98,747 |
|
|
|
416,682 |
|
|
|
409,886 |
|
Depreciation and amortization |
|
|
38,031 |
|
|
|
36,108 |
|
|
|
148,421 |
|
|
|
147,081 |
|
General
and administrative expenses |
|
|
37,387 |
|
|
|
29,264 |
|
|
|
142,938 |
|
|
|
115,715 |
|
Other
lodging and operating expenses |
|
|
16,870 |
|
|
|
16,433 |
|
|
|
56,180 |
|
|
|
62,281 |
|
Marketing, promotional and other advertising expenses |
|
|
11,243 |
|
|
|
12,474 |
|
|
|
70,613 |
|
|
|
68,327 |
|
Impairment loss |
|
|
189 |
|
|
|
3,640 |
|
|
|
1,178 |
|
|
|
104,258 |
|
Gain on
sales |
|
|
(2,346 |
) |
|
|
(2,138 |
) |
|
|
(3,665 |
) |
|
|
(4,908 |
) |
|
|
|
202,881 |
|
|
|
194,528 |
|
|
|
832,347 |
|
|
|
902,640 |
|
Brand
marketing fund expenses from franchised properties |
|
|
6,508 |
|
|
|
5,874 |
|
|
|
27,511 |
|
|
|
25,150 |
|
Total Operating
Expenses |
|
|
209,389 |
|
|
|
200,402 |
|
|
|
859,858 |
|
|
|
927,790 |
|
Operating
Income |
|
|
4,890 |
|
|
|
22,214 |
|
|
|
120,772 |
|
|
|
78,464 |
|
OTHER INCOME
(EXPENSES): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense, net |
|
|
(20,688 |
) |
|
|
(20,400 |
) |
|
|
(81,617 |
) |
|
|
(81,419 |
) |
Other
income |
|
|
675 |
|
|
|
57 |
|
|
|
1,416 |
|
|
|
2,345 |
|
Total Other
Expenses, net |
|
|
(20,013 |
) |
|
|
(20,343 |
) |
|
|
(80,201 |
) |
|
|
(79,074 |
) |
(Loss)
Income Before Income Taxes |
|
|
(15,123 |
) |
|
|
1,871 |
|
|
|
40,571 |
|
|
|
(610 |
) |
Income
tax benefit (expense) |
|
|
136,341 |
|
|
|
(1,852 |
) |
|
|
111,556 |
|
|
|
(493 |
) |
NET INCOME
(LOSS) |
|
|
121,218 |
|
|
|
19 |
|
|
|
152,127 |
|
|
|
(1,103 |
) |
Less: net
income attributable to noncontrolling interests |
|
|
(43 |
) |
|
|
(47 |
) |
|
|
(162 |
) |
|
|
(185 |
) |
Net Income
(Loss) Attributable to La Quinta
Holdings’ Stockholders |
|
$ |
121,175 |
|
|
$ |
(28 |
) |
|
$ |
151,965 |
|
|
$ |
(1,288 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATIONS
The tables below provide a reconciliation of EBITDA
and Total Adjusted EBITDA to Net Income (Loss), a reconciliation of
Adjusted Operating Income to Operating Income, and a reconciliation
of Adjusted Net Income and Adjusted Earnings Per Share to Net
(Loss) Income and Earnings Per Share. The Company believes this
financial information provides meaningful supplemental information.
The Company further believes the presentation of Total Adjusted
EBITDA, Adjusted Operating Income, Adjusted Net Income and Adjusted
Earnings Per Share provides meaningful information because it
excludes the impact of certain special items and/or certain items
that are not expected to have an ongoing effect on its operations.
This represents how management views the business and reviews its
operating performance. It is also used by management when publicly
providing the business outlook.
“EBITDA” and “Total Adjusted EBITDA.” Earnings before interest,
taxes, depreciation and amortization (“EBITDA”) is a commonly used
measure in many industries. The Company adjusts EBITDA when
evaluating its performance because the Company believes that the
adjustment for certain items, such as restructuring and acquisition
transaction expenses, impairment charges related to long-lived
assets, non-cash equity-based compensation, discontinued
operations, and other items not indicative of ongoing operating
performance, provides useful supplemental information to management
and investors regarding its ongoing operating performance. The
Company believes that EBITDA and Total Adjusted EBITDA provide
useful information to investors about it and its financial
condition and results of operations for the following reasons:
(i) EBITDA and Total Adjusted EBITDA are among the measures
used by the Company’s management team to evaluate its operating
performance and make day-to-day operating decisions; and
(ii) EBITDA and Total Adjusted EBITDA are frequently used by
securities analysts, investors, lenders and other interested
parties as a common performance measure to compare results or
estimate valuations across companies in the Company’s industry.
EBITDA and Total Adjusted EBITDA are not recognized terms under
GAAP, have limitations as analytical tools and should not be
considered either in isolation or as a substitute for net (loss)
income, cash flow or other methods of analyzing the Company’s
results as reported under GAAP. Some of these limitations are:
- EBITDA and Total Adjusted EBITDA do not reflect changes in, or
cash requirements for, the Company’s working capital needs;
- EBITDA and Total Adjusted EBITDA do not reflect the Company’s
interest expense, or the cash requirements necessary to service
interest or principal payments, on its indebtedness;
- EBITDA and Total Adjusted EBITDA do not reflect the Company’s
tax expense or the cash requirements to pay its taxes;
- EBITDA and Total Adjusted EBITDA do not reflect historical cash
expenditures or future requirements for capital expenditures or
contractual commitments;
- EBITDA and Total Adjusted EBITDA do not reflect the impact on
earnings or changes resulting from matters that the Company
considers not to be indicative of its future operations;
- although depreciation and amortization are non-cash charges,
the assets being depreciated and amortized will often have to be
replaced in the future, and EBITDA and Total Adjusted EBITDA do not
reflect any cash requirements for such replacements; and
- other companies in the Company’s industry may calculate EBITDA
and Total Adjusted EBITDA differently, limiting their usefulness as
comparative measures.
Because of these limitations, EBITDA and Total Adjusted EBITDA
should not be considered as discretionary cash available to the
Company to reinvest in the growth of its business or as measures of
cash that will be available to the Company to meet its
obligations.
“Total Adjusted EBITDA margin” represents the ratio of Total
Adjusted EBITDA to total revenues.
“Adjusted operating income (loss)” represents the Company’s
reported operating income (loss), adjusted to exclude the impact of
items not indicative of ongoing operating performance. Adjusted
operating income (loss) is presented to provide additional
perspective on underlying trends in the Company’s operating
results.
“Adjusted Net Income” and “Adjusted Earnings Per Share” are not
recognized terms under U.S. GAAP and should not be considered as
alternatives to net income (loss), earnings per share, or other
measures of financial performance or liquidity derived in
accordance with U.S. GAAP. In addition, the Company’s definitions
of Adjusted Net Income and Adjusted Earnings Per Share may not be
comparable to similarly titled measures of other companies.
Adjusted Net Income and Adjusted Earnings Per Share are included
to assist investors in performing meaningful comparisons of past,
present and future operating results and as a means of highlighting
the results of the Company’s ongoing operations in a comparable
format.
|
TOTAL ADJUSTED EBITDA NON-GAAP
RECONCILIATION |
(unaudited, in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
MonthsEndedDecember 31,2017 |
|
|
Three
MonthsEndedDecember 31,2016 |
|
|
Year EndedDecember 31,2017 |
|
|
Year EndedDecember 31,2016 |
|
Operating
income |
|
$ |
4,890 |
|
|
$ |
22,214 |
|
|
$ |
120,772 |
|
|
$ |
78,464 |
|
Interest
expense, net |
|
|
(20,688 |
) |
|
|
(20,400 |
) |
|
|
(81,617 |
) |
|
|
(81,419 |
) |
Other
income |
|
|
675 |
|
|
|
57 |
|
|
|
1,416 |
|
|
|
2,345 |
|
Income
tax benefit (expense) |
|
|
136,341 |
|
|
|
(1,852 |
) |
|
|
111,556 |
|
|
|
(493 |
) |
Income
from noncontrolling interest |
|
|
(43 |
) |
|
|
(47 |
) |
|
|
(162 |
) |
|
|
(185 |
) |
Net Income
(Loss) attributable to La Quinta Holdings’
Stockholders |
|
|
121,175 |
|
|
|
(28 |
) |
|
|
151,965 |
|
|
|
(1,288 |
) |
Interest
expense |
|
|
21,024 |
|
|
|
20,476 |
|
|
|
82,608 |
|
|
|
81,666 |
|
Income
tax (benefit) expense |
|
|
(136,341 |
) |
|
|
1,852 |
|
|
|
(111,556 |
) |
|
|
493 |
|
Depreciation and amortization |
|
|
38,720 |
|
|
|
36,376 |
|
|
|
149,951 |
|
|
|
147,996 |
|
Noncontrolling interest |
|
|
43 |
|
|
|
47 |
|
|
|
162 |
|
|
|
185 |
|
EBITDA |
|
|
44,621 |
|
|
|
58,723 |
|
|
|
273,130 |
|
|
|
229,052 |
|
Impairment loss |
|
|
189 |
|
|
|
3,640 |
|
|
|
1,178 |
|
|
|
104,258 |
|
Gain on
sales |
|
|
(2,346 |
) |
|
|
(2,138 |
) |
|
|
(3,665 |
) |
|
|
(4,908 |
) |
Loss on
retirement of assets |
|
|
2,485 |
|
|
|
— |
|
|
|
2,485 |
|
|
|
— |
|
Loss
related to casualty disasters |
|
|
2,791 |
|
|
|
3,333 |
|
|
|
1,557 |
|
|
|
3,051 |
|
Equity-based compensation |
|
|
2,411 |
|
|
|
3,342 |
|
|
|
13,338 |
|
|
|
14,153 |
|
Amortization of software service agreements |
|
|
2,369 |
|
|
|
2,144 |
|
|
|
9,514 |
|
|
|
9,050 |
|
Retention
plan |
|
|
2,897 |
|
|
|
— |
|
|
|
11,384 |
|
|
|
— |
|
Reorganization costs |
|
|
6,732 |
|
|
|
— |
|
|
|
15,209 |
|
|
|
— |
|
Other
(gains) losses, net |
|
|
(1,956 |
) |
|
|
889 |
|
|
|
2,742 |
|
|
|
5,722 |
|
Total Adjusted
EBITDA |
|
$ |
60,193 |
|
|
$ |
69,933 |
|
|
$ |
326,872 |
|
|
$ |
360,378 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SEGMENT REVENUES AND TOTAL ADJUSTED EBITDA
RECONCILIATION |
(unaudited, in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
MonthsEndedDecember 31,2017 |
|
|
Three
MonthsEndedDecember 31,2016 |
|
|
Year EndedDecember 31,2017 |
|
|
Year EndedDecember 31,2016 |
|
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Owned
Hotels |
|
$ |
181,202 |
|
|
$ |
191,308 |
|
|
$ |
842,950 |
|
|
$ |
879,653 |
|
Franchise
and management |
|
|
27,198 |
|
|
|
27,585 |
|
|
|
118,516 |
|
|
|
116,806 |
|
Segment
revenues |
|
|
208,400 |
|
|
|
218,893 |
|
|
|
961,466 |
|
|
|
996,459 |
|
Other
fee-based revenues from franchised properties |
|
|
6,508 |
|
|
|
5,874 |
|
|
|
27,511 |
|
|
|
25,150 |
|
Corporate
and other |
|
|
28,938 |
|
|
|
28,802 |
|
|
|
124,970 |
|
|
|
124,757 |
|
Intersegment elimination |
|
|
(29,567 |
) |
|
|
(30,953 |
) |
|
|
(133,317 |
) |
|
|
(140,112 |
) |
Total revenues |
|
$ |
214,279 |
|
|
$ |
222,616 |
|
|
$ |
980,630 |
|
|
$ |
1,006,254 |
|
Total Adjusted
EBITDA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Owned
Hotels |
|
$ |
41,389 |
|
|
$ |
51,382 |
|
|
$ |
250,344 |
|
|
$ |
279,536 |
|
Franchise
and management |
|
|
27,198 |
|
|
|
27,585 |
|
|
|
118,516 |
|
|
|
116,806 |
|
Segment
Adjusted EBITDA |
|
|
68,587 |
|
|
|
78,967 |
|
|
|
368,860 |
|
|
|
396,342 |
|
Corporate
and other |
|
|
(8,394 |
) |
|
|
(9,034 |
) |
|
|
(41,988 |
) |
|
|
(35,964 |
) |
Total Adjusted EBITDA |
|
$ |
60,193 |
|
|
$ |
69,933 |
|
|
$ |
326,872 |
|
|
$ |
360,378 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADJUSTED OPERATING INCOME NON-GAAP
RECONCILIATION |
(unaudited, in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
MonthsEndedDecember 31,2017 |
|
|
Three
MonthsEndedDecember 31,2016 |
|
|
Year EndedDecember 31,2017 |
|
|
Year EndedDecember 31,2016 |
|
Operating
income |
|
$ |
4,890 |
|
|
$ |
22,214 |
|
|
$ |
120,772 |
|
|
$ |
78,464 |
|
Impairment loss |
|
|
189 |
|
|
|
3,640 |
|
|
|
1,178 |
|
|
|
104,258 |
|
Retention
plan |
|
|
2,897 |
|
|
|
— |
|
|
|
11,384 |
|
|
|
— |
|
Reorganization costs |
|
|
6,732 |
|
|
|
— |
|
|
|
15,209 |
|
|
|
— |
|
Gain on
sales |
|
|
(2,346 |
) |
|
|
(2,138 |
) |
|
|
(3,665 |
) |
|
|
(4,908 |
) |
Adjusted
operating income |
|
$ |
12,362 |
|
|
$ |
23,716 |
|
|
$ |
144,878 |
|
|
$ |
177,814 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADJUSTED NET INCOME AND ADJUSTED EARNINGS PER
SHARE |
NON-GAAP RECONCILIATION |
(unaudited, in thousands, except per share
data) |
|
|
|
|
|
|
|
|
|
Three Months EndedDecember 31,
2017 |
|
|
Three Months EndedDecember 31,
2016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income |
|
|
DilutedEarningsPerShare |
|
|
Net Income |
|
|
DilutedEarningsPerShare |
|
Net Income
attributable to La Quinta
Holdings’ Stockholders |
|
$ |
121,175 |
|
|
|
1.03 |
|
|
$ |
(28 |
) |
|
$ |
— |
|
Impact of
tax reform |
|
|
(132,076 |
) |
|
|
(1.13 |
) |
|
|
— |
|
|
|
— |
|
Impairment loss |
|
|
189 |
|
|
|
— |
|
|
|
3,640 |
|
|
|
0.03 |
|
Retention
plan |
|
|
2,897 |
|
|
|
0.02 |
|
|
|
— |
|
|
|
— |
|
Reorganization costs |
|
|
6,732 |
|
|
|
0.07 |
|
|
|
— |
|
|
|
— |
|
Gain on
sales |
|
|
(2,346 |
) |
|
|
(0.02 |
) |
|
|
(2,138 |
) |
|
|
(0.02 |
) |
Tax
impact of adjustments |
|
|
(2,989 |
) |
|
|
(0.02 |
) |
|
|
(601 |
) |
|
|
— |
|
Adjusted Net
Income attributable to La Quinta Holdings’
Stockholders |
|
$ |
(6,418 |
) |
|
|
(0.05 |
) |
|
$ |
873 |
|
|
$ |
0.01 |
|
Weighted
average common shares outstanding, basic |
|
|
|
|
|
|
116,105 |
|
|
|
|
|
|
|
115,815 |
|
Weighted
average common shares outstanding, diluted |
|
|
|
|
|
|
117,094 |
|
|
|
|
|
|
|
116,079 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, 2017 |
|
|
Year Ended December 31, 2016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income |
|
|
DilutedEarningsPerShare |
|
|
Net (Loss)Income |
|
|
Diluted(Loss)EarningsPerShare |
|
Net Income
(Loss) attributable to La Quinta
Holdings’ Stockholders |
|
$ |
151,965 |
|
|
$ |
1.30 |
|
|
$ |
(1,288 |
) |
|
$ |
(0.01 |
) |
Impact of
tax reform |
|
|
(132,076 |
) |
|
|
(1.13 |
) |
|
|
— |
|
|
|
— |
|
Impairment loss |
|
|
1,178 |
|
|
|
0.01 |
|
|
|
104,258 |
|
|
|
0.88 |
|
Retention
plan |
|
|
11,384 |
|
|
|
0.10 |
|
|
|
— |
|
|
|
— |
|
Reorganization costs |
|
|
15,209 |
|
|
|
0.13 |
|
|
|
— |
|
|
|
— |
|
Gain on
sales |
|
|
(3,665 |
) |
|
|
(0.03 |
) |
|
|
(4,908 |
) |
|
|
(0.04 |
) |
Tax
impact of adjustments |
|
|
(9,642 |
) |
|
|
(0.09 |
) |
|
|
(39,740 |
) |
|
|
(0.34 |
) |
Adjusted Net
Income attributable to La Quinta Holdings’
Stockholders |
|
$ |
34,353 |
|
|
$ |
0.29 |
|
|
$ |
58,322 |
|
|
$ |
0.49 |
|
Weighted
average common shares outstanding, basic |
|
|
|
|
|
|
116,030 |
|
|
|
|
|
|
|
118,114 |
|
Weighted
average common shares outstanding, diluted |
|
|
|
|
|
|
116,682 |
|
|
|
|
|
|
|
118,233 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LA QUINTA HOLDINGS
INC.CERTAIN DEFINED TERMS
“ADR” or “average daily rate” means hotel room revenues divided
by total number of rooms sold in a given period.
“comparable hotels” means hotels that: were active and operating
in the Company’s system for at least one full calendar year as of
the end of the applicable period and were active and operating as
of January 1st of the previous year; except for (i) hotels
that sustained substantial property damage or other business
interruption, (ii) owned hotels that become subject to a purchase
and sale agreement, or (iii) hotels in which comparable results are
otherwise not available. Management uses comparable hotels as the
basis upon which to evaluate ADR, occupancy, RevPAR and RevPAR
Index on a system-wide basis and for each of the Company’s
reportable segments.
“occupancy” means the total number of rooms sold in a given
period divided by the total number of rooms available at a hotel or
group of hotels.
“RevPAR” or “revenue per available room” means the product of
the ADR charged and the average daily occupancy achieved.
“RevPAR Index” measures a hotel’s fair market share of its
competitive set’s revenue per available room.
“system-wide” refers collectively to the Company’s owned,
franchised and managed hotel portfolios.
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