La Quinta Holdings Inc. (“La Quinta” or the “Company”) (NYSE:LQ)
today reported results for the quarter ended June 30, 2017.
Second Quarter 2017 Highlights
- Grew system-wide comparable RevPAR 1.9 percent and
increased franchise and other fee-based revenue 7.9 percent;
Excluding the impact of the owned hotels undergoing significant
renovation as part of the repositioning effort, RevPAR grew 3
percent
- Increased RevPAR Index by 285 bps, the fourth
consecutive quarter of accelerating market share
growth
- Opened five franchised hotels, totaling approximately
450 rooms, including downtown locations in Memphis, Tennessee and
Baltimore, Maryland
- Invested over $40 million supporting the Company’s
owned hotel repositioning strategy, completing 10 projects,
including a multi-million dollar refresh of the flagship Chicago
downtown location
- Increased franchise pipeline to 250 hotels,
representing approximately 23,500 additional rooms, and continued
to expand the brand’s footprint with 20 new franchise agreements
including locations in Indiana, North Carolina, and
Tennessee
- Continued to generate strong cash flow
- Reported Net Income of $16.8 million and Adjusted Net
Income of $20.4 million; Net Income per Share was $0.14 and
Adjusted Earnings per Share was $0.17
Overview
“La Quinta delivered solid performance again this quarter as we
grew RevPAR and continued to see significant improvement in our
guest satisfaction scores, which led us to our fourth consecutive
quarter of market share growth,” said Keith A. Cline, President and
Chief Executive Officer of La Quinta. We completed 10 projects in
our repositioning program late in the second quarter and we are
encouraged by the early positive response from our guests. We also
added to a strong pipeline that will allow us to further expand our
reach into new markets and take advantage of our unique growth
opportunity in the industry.
Mr. Cline continued, “Last month our subsidiary, CorePoint
Lodging Inc., filed its Form 10, which is an important step toward
separating our real estate business from our franchise and
management businesses. We believe this separation will allow us to
take advantage of growth opportunities by allowing each entity to
operate independently and generate long term value for La Quinta’s
shareholders.”
Financial Overview
For the second quarter of 2017, the Company grew system-wide
comparable RevPAR 1.9 percent over the same period of 2016, driven
by 3.0 percent growth in its franchise locations and 0.6 percent
growth in its owned hotels. Excluding the impact of the owned
hotels undergoing significant renovation as part of the
repositioning effort, system-wide comparable RevPAR increased 3
percent in the second quarter. The Company grew franchise and other
fee-based revenue 7.9 percent in the second quarter of 2017 over
the prior year period and reported its fourth consecutive quarter
of market share growth, as evidenced by a 285 basis point
improvement in RevPAR index over the prior year period.
For the second quarter of 2017, the Company reported net income
of $16.8 million and adjusted net income of $20.4 million.
Net Income per Share was $0.14 and Adjusted Earnings per Share was
$0.17.
Total Adjusted EBITDA for the second quarter of 2017 was $100.9
million. Total Adjusted EBITDA for the second quarter of 2017
as compared to the prior year quarter was affected by the sale of
owned hotels in 2016 and early 2017. These hotels contributed
revenues of approximately $9.7 million and total Adjusted EBITDA of
approximately $3.5 million in the second quarter of 2016, which did
not recur in 2017. Total Adjusted EBITDA was also impacted,
in large part, by competitive wage pressures and increased labor
investments at the Company’s owned hotels, as well as an elevated
presence of third-party booking agents in its channel mix as
compared to the prior year, and lower insurance expenses at the
owned hotels.
The Company’s system-wide portfolio, as of June 30, 2017,
is located across 48 states in the U.S., as well as in Canada,
Mexico, Honduras and Colombia. The portfolio includes:
|
|
June 30, 2017 |
|
|
June 30, 2016 |
|
|
|
# of hotels |
|
|
# of rooms |
|
|
# of hotels |
|
|
# of rooms |
|
Owned (1) |
|
|
318 |
|
|
|
40,700 |
|
|
|
335 |
|
|
|
42,700 |
|
Joint Venture |
|
|
1 |
|
|
|
200 |
|
|
|
1 |
|
|
|
200 |
|
Franchised(2) |
|
|
570 |
|
|
|
46,600 |
|
|
|
553 |
|
|
|
45,000 |
|
Totals |
|
|
889 |
|
|
|
87,500 |
|
|
|
889 |
|
|
|
87,900 |
|
(1) |
|
As of June 30, 2017 and
2016, Owned included three hotels (400 rooms) and 13 hotels (1,500
rooms), respectively, designated as assets held for sale, which are
subject to definitive purchase agreements |
(2) |
|
As of June 30, 2017 and
2016, Franchised included four hotels (500 rooms) and three hotels
(400 rooms), respectively, under temporary franchise agreements
related to formerly owned hotels which are in the process of
leaving the system |
The results of operations for the Company for the three months
ended June 30, 2017 and 2016 include the following
highlights ($ in thousands, except per share amounts):
|
Three Months Ended June 30, |
|
|
2017 (1) |
|
|
2016 (1) |
|
|
% Change |
|
Total Revenue |
$ |
263,437 |
|
|
$ |
269,555 |
|
|
|
-2.3 |
% |
Franchise and
Management Segment Adj. EBITDA |
|
31,430 |
|
|
|
30,900 |
|
|
|
1.7 |
% |
Owned Hotels Segment
Adj. EBITDA |
|
80,939 |
|
|
|
83,239 |
|
|
|
-2.8 |
% |
Total Adj. EBITDA |
|
100,905 |
|
|
|
105,411 |
|
|
|
-4.3 |
% |
Total Adj. EBITDA
margin |
|
38.3 |
% |
|
|
39.1 |
% |
|
|
|
|
Operating Income |
|
49,778 |
|
|
|
40,485 |
|
|
|
23.0 |
% |
Operating Income
Margin |
|
18.9 |
% |
|
|
15.0 |
% |
|
|
|
|
Adj. Operating
Income |
|
55,738 |
|
|
|
55,980 |
|
|
|
-0.4 |
% |
Adj. Operating Income
Margin |
|
21.2 |
% |
|
|
20.8 |
% |
|
|
|
|
(1) |
|
2016 results include
approximately $9.7 million of total revenues and approximately $3.5
million of total Adjusted EBITDA from hotels sold in 2016 and
2017 |
|
|
Three Months Ended |
|
|
Three Months Ended |
|
|
|
|
|
|
June 30, 2017 |
|
|
June 30, 2016 |
|
|
% Change |
|
|
|
NetIncome |
|
|
BasicandDilutedEPS |
|
|
NetIncome |
|
|
BasicandDilutedEPS |
|
|
NetIncome |
|
|
BasicandDilutedEPS |
|
Net Income Attributable
to La Quinta Holdings’stockholders |
|
$ |
16,786 |
|
|
$ |
0.14 |
|
|
$ |
14,849 |
|
|
$ |
0.13 |
|
|
|
13.0 |
% |
|
|
7.7 |
% |
Adjusted Net Income
Attributable to La Quinta Holdings’stockholders |
|
$ |
20,362 |
|
|
$ |
0.17 |
|
|
$ |
24,146 |
|
|
$ |
0.21 |
|
|
|
-15.7 |
% |
|
|
-19.0 |
% |
The results of operations for the Company for the six months
ended June 30, 2017 and 2016 include the following
highlights ($ in thousands, except per share amounts):
|
Six Months Ended June 30, |
|
|
|
2017 (1) |
|
|
2016 (1) |
|
|
% Change |
|
|
Total Revenue |
$ |
497,709 |
|
|
$ |
511,326 |
|
|
|
-2.7 |
% |
|
Franchise and
Management Segment Adj. EBITDA |
|
58,144 |
|
|
|
57,120 |
|
|
|
1.8 |
% |
|
Owned Hotels Segment
Adj. EBITDA |
|
139,660 |
|
|
|
151,492 |
|
|
|
-7.8 |
% |
|
Total Adj. EBITDA |
|
172,855 |
|
|
|
189,708 |
|
|
|
-8.9 |
% |
|
Total Adj. EBITDA
margin |
|
34.7 |
% |
|
|
37.1 |
% |
|
|
|
|
|
Operating Income
(Loss) |
|
73,750 |
|
|
|
(5,035 |
) |
|
NM |
|
(2) |
|
Operating Income
Margin |
|
14.8 |
% |
|
|
-1.0 |
% |
|
|
|
|
|
Adj. Operating
Income |
|
84,541 |
|
|
|
93,803 |
|
|
|
-9.9 |
% |
|
Adj. Operating Income
Margin |
|
17.0 |
% |
|
|
18.3 |
% |
|
|
|
|
|
(1) |
|
2016 results include
approximately $19 million of total revenues and approximately $6
million of total Adjusted EBITDA from hotels sold in 2016 and
2017 |
(2) |
|
Change in terms of
percentage is not meaningful |
|
|
Six Months Ended |
|
|
Six Months Ended |
|
|
|
|
|
|
|
June 30, 2017 |
|
|
June 30, 2016 |
|
|
% Change |
|
|
|
|
NetIncome |
|
|
BasicandDilutedEPS |
|
|
Net(Loss)Income |
|
|
BasicandDilutedEPS |
|
|
Net(Loss)Income |
|
|
BasicandDilutedEPS |
|
|
Net Income (Loss)
Attributable to La Quinta Holdings'stockholders |
|
$ |
18,375 |
|
|
$ |
0.16 |
|
|
$ |
(23,926 |
) |
|
$ |
(0.20 |
) |
|
NM |
|
(1) |
|
NM |
|
(1) |
|
Adjusted Net Income
Attributable to La Quinta Holdings’stockholders |
|
$ |
24,850 |
|
|
$ |
0.21 |
|
|
$ |
35,377 |
|
|
$ |
0.29 |
|
|
|
-29.8 |
% |
|
|
-27.6 |
% |
|
(1) |
|
Change in terms of
percentage is not meaningful. |
Comparable hotel statistics |
|
ThreeMonthsEndedJune 30,
2017 |
|
|
VarianceThreeMonthsEndedJune 30, 2017vs.
2016 |
|
|
|
Six MonthsEndedJune 30, 2017 |
|
|
Variance SixMonthsEndedJune 30, 2017vs.
2016 |
|
|
Owned hotels |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Occupancy |
|
|
69.1 |
% |
|
-66 |
|
bps |
|
|
66.1 |
% |
|
|
-44 |
|
bps |
ADR |
|
$ |
86.42 |
|
|
|
1.6 |
|
% |
|
$ |
86.30 |
|
|
|
1.4 |
|
% |
RevPAR |
|
$ |
59.68 |
|
|
|
0.6 |
|
% |
|
$ |
57.02 |
|
|
|
0.8 |
|
% |
Franchised hotels |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Occupancy |
|
|
72.0 |
% |
|
98 |
|
bps |
|
|
67.6 |
% |
|
|
161 |
|
bps |
ADR |
|
$ |
96.79 |
|
|
|
1.6 |
|
% |
|
$ |
93.23 |
|
|
|
1.3 |
|
% |
RevPAR |
|
$ |
69.68 |
|
|
|
3.0 |
|
% |
|
$ |
63.05 |
|
|
|
3.8 |
|
% |
System-wide |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Occupancy |
|
|
70.5 |
% |
|
16 |
|
bps |
|
|
66.8 |
% |
|
|
59 |
|
bps |
ADR |
|
$ |
91.72 |
|
|
|
1.7 |
|
% |
|
$ |
89.81 |
|
|
|
1.4 |
|
% |
RevPAR |
|
$ |
64.70 |
|
|
|
1.9 |
|
% |
|
$ |
60.04 |
|
|
|
2.3 |
|
% |
|
|
ThreeMonthsEndedJune 30,
2017 |
|
|
Variance threemonths endedJune 30, 2017vs.
2016 |
|
|
Six MonthsEndedJune 30,
2017 |
|
|
Variance SixMonths EndedJune 30, 2017vs.
2016 |
RevPAR Index(1) |
|
|
96.7 |
% |
|
285
bps |
|
|
|
95.9 |
% |
|
241
bps |
(1) |
|
Information based on
the STR competitive set of hotels existing as of June 30,
2017. |
Development
During the second quarter of 2017, the Company opened a total of
five franchised hotels (approximately 450 rooms) and terminated
five franchised hotels, resulting in a number of franchise hotels
at the end of the second quarter consistent with that at the end of
the first quarter. The elevated level of franchise
terminations was in keeping with the Company’s overall strategy to
drive consistency in its product. As of June 30, 2017 the Company
had a pipeline of 250 franchised hotels totaling approximately
23,500 rooms, to be located in the United States, Mexico, Colombia,
Nicaragua, Guatemala, Chile, and El Salvador.
Owned Hotel Portfolio
As of June 30, 2017, the Company had three hotels held for sale.
In addition, during the second 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. Late in the second quarter, several of these hotels
emerged from construction and are currently being reintroduced to
their markets as being significantly improved.
Balance Sheet and Liquidity
As of June 30, 2017, the Company had approximately $1.7
billion of outstanding indebtedness with a weighted average
interest rate of approximately 4.4%, including the impact of an
interest rate swap. Total cash and cash equivalents was
$162.0 million as of June 30, 2017.
Outlook
Based upon management’s current estimates, the Company is
reaffirming its guidance for the full year 2017:
|
|
Guidance |
RevPAR growth on a
system-wide comparable hotel basis |
|
0.0 percent to 2.0 percent |
Adjusted EBITDA |
|
$320
million to $340 million |
Please see the schedules to this press release for a
reconciliation of Adjusted EBITDA to Adjusted Net Income (Loss)
Attributable to La Quinta Holdings’ stockholders. A
reconciliation of Adjusted EBITDA to the closest GAAP financial
measure is not available without unreasonable efforts on a
forward-looking basis due to the high variability, complexity and
low visibility with respect to impairment charges, gains or losses
on sales of assets, and other non-recurring items excluded from
these non-GAAP financial measures. For the same reasons, the
Company is unable to address the probable significance of the
unavailable information, which could have a potentially
unpredictable, and potentially significant, impact on its future
GAAP financial results.
Webcast and Conference Call
La Quinta Holdings Inc. will host a conference call to discuss
second quarter 2017 results on Tuesday, August 8, 2017 at 8:30 a.m.
Eastern Time. Participants may listen to the live webcast by
dialing (844) 395-9252, or (478) 219-0505 for international
participants, and enter passcode 60140514 or by logging onto the La
Quinta Investor Relations website at www.lq.com/investorrelations.
Participants 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 2:00
p.m. Eastern Time on August 8, 2017 through midnight Eastern Time
on August 15, 2017. 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 60140514. The archive of the webcast
will be available on the Company's website for a limited time.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, as
amended and Section 21E of the Securities Exchange Act of
1934, as amended. These statements include, but are not limited to,
statements related to the Company’s expectations regarding the
performance of its business, its financial results, its liquidity
and capital resources, the outcome of the Company’s strategic
initiatives and the potential separation of its businesses and
other non-historical statements, including the statements in the
“Outlook” section of this press release. You can identify these
forward-looking statements by the use of words such as “outlook,”
“believes,” “expects,” “potential,” “continues,” “may,” “will,”
“should,” “could,” “seeks,” “projects,” “predicts,” “intends,”
“plans,” “estimates,” “anticipates” or the negative version of
these words or other comparable words. Such forward-looking
statements are subject to various risks and uncertainties,
including those described under the section entitled “Risk Factors”
in the Company’s Annual Report on Form 10-K for the year ended
December 31, 2016, filed with the Securities and Exchange
Commission (“SEC”), as such factors may be updated from time to
time in the Company’s periodic filings with the SEC, which are
accessible on the SEC’s website at www.sec.gov. Accordingly, there
are or will be important factors that could cause actual outcomes
or results to differ materially from those indicated in these
statements. These factors should not be construed as exhaustive and
should be read in conjunction with the other cautionary statements
that are included in this release and in the Company’s filings with
the SEC. The Company undertakes no obligation to publicly update or
review any forward-looking statement, whether as a result of new
information, future developments or otherwise, except as required
by law.
Non-GAAP Financial Measures
The Company refers to certain non-GAAP financial measures in
this press release including Adjusted EBITDA, 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 more than 885 properties
representing approximately 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 Notification
section at www.lq.com/investorrelations.
|
LA QUINTA HOLDINGS INC. |
BALANCE SHEETS |
(in thousands, except share data) |
|
|
|
|
June 30, 2017 |
|
|
December 31, 2016 |
|
ASSETS |
|
(unaudited) |
|
|
|
|
|
Current
Assets: |
|
|
|
|
|
|
|
|
Cash and
cash equivalents |
|
$ |
161,962 |
|
|
$ |
160,596 |
|
Accounts
receivable, net of allowance for doubtful accounts of $4,296
and$4,022 |
|
|
44,448 |
|
|
|
45,337 |
|
Assets
held for sale |
|
|
9,048 |
|
|
|
29,544 |
|
Other
current assets |
|
|
19,548 |
|
|
|
9,943 |
|
Total Current Assets |
|
|
235,006 |
|
|
|
245,420 |
|
Property and equipment,
net of accumulated depreciation |
|
|
2,501,624 |
|
|
|
2,456,780 |
|
Intangible assets, net
of accumulated amortization |
|
|
176,492 |
|
|
|
177,002 |
|
Other non-current
assets |
|
|
15,492 |
|
|
|
13,321 |
|
Total Non-Current Assets |
|
|
2,693,608 |
|
|
|
2,647,103 |
|
Total Assets |
|
$ |
2,928,614 |
|
|
$ |
2,892,523 |
|
LIABILITIES AND EQUITY |
|
|
|
|
|
|
|
|
Current
Liabilities: |
|
|
|
|
|
|
|
|
Current
portion of long-term debt |
|
$ |
17,514 |
|
|
$ |
17,514 |
|
Accounts
payable |
|
|
43,523 |
|
|
|
38,130 |
|
Accrued
expenses and other liabilities |
|
|
66,168 |
|
|
|
64,581 |
|
Accrued
payroll and employee benefits |
|
|
41,426 |
|
|
|
38,467 |
|
Accrued
real estate taxes |
|
|
17,912 |
|
|
|
21,400 |
|
Total Current Liabilities |
|
|
186,543 |
|
|
|
180,092 |
|
Long-term debt |
|
|
1,676,421 |
|
|
|
1,682,436 |
|
Other long-term
liabilities |
|
|
27,847 |
|
|
|
29,130 |
|
Deferred tax
liabilities |
|
|
352,382 |
|
|
|
343,028 |
|
Total Liabilities |
|
|
2,243,193 |
|
|
|
2,234,686 |
|
Commitments and
Contingencies |
|
|
|
|
|
|
|
|
Equity: |
|
|
|
|
|
|
|
|
Preferred Stock, $0.01
par value; 100,000,000 shares authorized and none |
|
|
|
|
|
|
|
|
outstanding as of June 30, 2017 and December 31, 2016 |
|
|
— |
|
|
|
— |
|
Common Stock, $0.01 par
value; 2,000,000,000 shares authorized at |
|
|
|
|
|
|
|
|
June 30,
2017 and December 31, 2016; 132,476,942 shares issuedand
117,462,590 shares outstanding as of June 30, 2017 and131,750,715
shares issued and 116,790,470 shares outstandingas of December 31,
2016 |
|
|
1,325 |
|
|
|
1,318 |
|
Additional
paid-in-capital |
|
|
1,173,957 |
|
|
|
1,165,651 |
|
Accumulated
deficit |
|
|
(277,631 |
) |
|
|
(296,006 |
) |
Treasury stock at cost,
15,014,352 shares at June 30, 2017 and 14,960,245 |
|
|
|
|
|
|
|
|
shares at
December 31, 2016 |
|
|
(210,299 |
) |
|
|
(209,523 |
) |
Accumulated other
comprehensive loss |
|
|
(4,559 |
) |
|
|
(6,372 |
) |
Noncontrolling
interests |
|
|
2,628 |
|
|
|
2,769 |
|
Total Equity |
|
|
685,421 |
|
|
|
657,837 |
|
Total Liabilities and Equity |
|
$ |
2,928,614 |
|
|
$ |
2,892,523 |
|
|
|
|
|
|
|
|
|
|
LA QUINTA HOLDINGS INC. |
STATEMENTS OF OPERATIONS |
(in thousands) |
|
|
|
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
|
|
2017 |
|
|
2016 |
|
|
2017 |
|
|
2016 |
|
|
|
(unaudited) |
|
REVENUES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Room
revenues |
|
$ |
221,043 |
|
|
$ |
229,868 |
|
|
$ |
420,787 |
|
|
$ |
439,341 |
|
Franchise
and other fee-based revenues |
|
|
30,175 |
|
|
|
27,978 |
|
|
|
54,153 |
|
|
|
50,170 |
|
Other
hotel revenues |
|
|
4,937 |
|
|
|
5,018 |
|
|
|
9,733 |
|
|
|
9,849 |
|
|
|
|
256,155 |
|
|
|
262,864 |
|
|
|
484,673 |
|
|
|
499,360 |
|
Brand
marketing fund revenues from franchised properties |
|
|
7,282 |
|
|
|
6,691 |
|
|
|
13,036 |
|
|
|
11,966 |
|
Total
Revenues |
|
|
263,437 |
|
|
|
269,555 |
|
|
|
497,709 |
|
|
|
511,326 |
|
OPERATING
EXPENSES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Direct
lodging expenses |
|
|
104,454 |
|
|
|
103,578 |
|
|
|
204,788 |
|
|
|
202,490 |
|
Depreciation and amortization |
|
|
36,416 |
|
|
|
36,628 |
|
|
|
72,456 |
|
|
|
74,925 |
|
General
and administrative expenses |
|
|
35,498 |
|
|
|
30,881 |
|
|
|
70,936 |
|
|
|
56,879 |
|
Other
lodging and operating expenses |
|
|
7,831 |
|
|
|
15,294 |
|
|
|
21,891 |
|
|
|
30,976 |
|
Marketing, promotional and other |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
advertising expenses |
|
|
22,178 |
|
|
|
20,503 |
|
|
|
40,714 |
|
|
|
40,287 |
|
Impairment loss |
|
|
— |
|
|
|
16,217 |
|
|
|
— |
|
|
|
99,560 |
|
(Gain)
loss on sales |
|
|
— |
|
|
|
(722 |
) |
|
|
138 |
|
|
|
(722 |
) |
|
|
|
206,377 |
|
|
|
222,379 |
|
|
|
410,923 |
|
|
|
504,395 |
|
Brand
marketing fund expenses from franchised properties |
|
|
7,282 |
|
|
|
6,691 |
|
|
|
13,036 |
|
|
|
11,966 |
|
Total Operating
Expenses |
|
|
213,659 |
|
|
|
229,070 |
|
|
|
423,959 |
|
|
|
516,361 |
|
Operating
Income (Loss) |
|
|
49,778 |
|
|
|
40,485 |
|
|
|
73,750 |
|
|
|
(5,035 |
) |
OTHER INCOME
(EXPENSES): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense, net |
|
|
(20,253 |
) |
|
|
(20,286 |
) |
|
|
(40,233 |
) |
|
|
(40,592 |
) |
Other
(expense) income |
|
|
(69 |
) |
|
|
117 |
|
|
|
(93 |
) |
|
|
1,100 |
|
Total Other
Expenses, net |
|
|
(20,322 |
) |
|
|
(20,169 |
) |
|
|
(40,326 |
) |
|
|
(39,492 |
) |
Income (Loss) Before Income Taxes |
|
|
29,456 |
|
|
|
20,316 |
|
|
|
33,424 |
|
|
|
(44,527 |
) |
Income
tax (expense) benefit |
|
|
(12,633 |
) |
|
|
(5,398 |
) |
|
|
(14,923 |
) |
|
|
20,721 |
|
NET INCOME
(LOSS) |
|
|
16,823 |
|
|
|
14,918 |
|
|
|
18,501 |
|
|
|
(23,806 |
) |
Less: net
income attributable to noncontrolling interests |
|
|
(37 |
) |
|
|
(69 |
) |
|
|
(126 |
) |
|
|
(120 |
) |
Net Income
(Loss) Attributable to La Quinta Holdings’ |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders |
|
$ |
16,786 |
|
|
$ |
14,849 |
|
|
$ |
18,375 |
|
|
$ |
(23,926 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATIONS
The tables below provide a reconciliation of EBITDA
and Adjusted EBITDA to Net Income (Loss), a reconciliation of
Adjusted Operating Income to Operating Income, a reconciliation of
Adjusted Net Income and Adjusted Earnings Per Share to Net (Loss)
Income and Earnings Per Share, and a reconciliation of Adjusted
EBITDA to Adjusted Net Income with respect to the Company’s
outlook. The Company believes this financial information provides
meaningful supplemental information. The Company further believes
the presentation of 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 “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
Adjusted EBITDA provide useful information to investors about it
and its financial condition and results of operations for the
following reasons: (i) EBITDA and 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 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 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 Adjusted EBITDA do not reflect changes in, or cash
requirements for, the Company’s working capital needs;
- EBITDA and 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 Adjusted EBITDA do not reflect the Company’s tax
expense or the cash requirements to pay its taxes;
- EBITDA and Adjusted EBITDA do not reflect historical cash
expenditures or future requirements for capital expenditures or
contractual commitments;
- EBITDA and 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 Adjusted EBITDA do not
reflect any cash requirements for such replacements; and
- other companies in the Company’s industry may calculate EBITDA
and Adjusted EBITDA differently, limiting their usefulness as
comparative measures.
Because of these limitations, EBITDA and 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.
“Adjusted EBITDA margin” represents the ratio of 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.
ADJUSTED EBITDA NON-GAAP
RECONCILIATION |
(unaudited, in thousands) |
|
|
|
|
Three MonthsEndedJune 30,
2017 |
|
|
Three MonthsEndedJune 30,
2016 |
|
|
Six MonthsEndedJune 30, 2017 |
|
|
Six MonthsEndedJune 30, 2016 |
|
Operating
income (loss) |
|
$ |
49,778 |
|
|
$ |
40,485 |
|
|
$ |
73,750 |
|
|
$ |
(5,035 |
) |
Interest
expense, net |
|
|
(20,253 |
) |
|
|
(20,286 |
) |
|
|
(40,233 |
) |
|
|
(40,592 |
) |
Other
(expense) income |
|
|
(69 |
) |
|
|
117 |
|
|
|
(93 |
) |
|
|
1,100 |
|
Income
tax (expense) benefit |
|
|
(12,633 |
) |
|
|
(5,398 |
) |
|
|
(14,923 |
) |
|
|
20,721 |
|
Income
from noncontrolling interest |
|
|
(37 |
) |
|
|
(69 |
) |
|
|
(126 |
) |
|
|
(120 |
) |
Net Income
(Loss) attributable to La Quinta |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Holdings’ Stockholders |
|
|
16,786 |
|
|
|
14,849 |
|
|
|
18,375 |
|
|
|
(23,926 |
) |
Interest
expense |
|
|
20,464 |
|
|
|
20,325 |
|
|
|
40,572 |
|
|
|
40,689 |
|
Income
tax expense (benefit) |
|
|
12,633 |
|
|
|
5,398 |
|
|
|
14,923 |
|
|
|
(20,721 |
) |
Depreciation and amortization |
|
|
36,758 |
|
|
|
36,871 |
|
|
|
73,015 |
|
|
|
75,396 |
|
Noncontrolling interest |
|
|
37 |
|
|
|
69 |
|
|
|
126 |
|
|
|
120 |
|
EBITDA |
|
|
86,678 |
|
|
|
77,512 |
|
|
|
147,011 |
|
|
|
71,558 |
|
Impairment loss |
|
|
— |
|
|
|
16,217 |
|
|
|
— |
|
|
|
99,560 |
|
(Gain)
loss on sales |
|
|
— |
|
|
|
(722 |
) |
|
|
138 |
|
|
|
(722 |
) |
(Gain)
loss related to casualty disasters |
|
|
(1,053 |
) |
|
|
690 |
|
|
|
(2,981 |
) |
|
|
21 |
|
Equity
based compensation |
|
|
4,356 |
|
|
|
4,620 |
|
|
|
8,299 |
|
|
|
7,110 |
|
Amortization of software service agreements |
|
|
2,288 |
|
|
|
2,487 |
|
|
|
4,647 |
|
|
|
4,634 |
|
Other
losses, net |
|
|
8,636 |
|
|
|
4,607 |
|
|
|
15,741 |
|
|
|
7,547 |
|
Adjusted
EBITDA |
|
$ |
100,905 |
|
|
$ |
105,411 |
|
|
$ |
172,855 |
|
|
$ |
189,708 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SEGMENT REVENUES AND ADJUSTED EBITDA
RECONCILIATION |
(unaudited, in thousands) |
|
|
|
|
Three MonthsEndedJune 30,
2017 |
|
|
Three MonthsEndedJune 30,
2016 |
|
|
Six MonthsEndedJune 30, 2017 |
|
|
Six MonthsEndedJune 30, 2016 |
|
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Owned
Hotels |
|
$ |
226,971 |
|
|
$ |
236,364 |
|
|
$ |
432,606 |
|
|
$ |
451,919 |
|
Franchise
and management |
|
|
31,430 |
|
|
|
30,900 |
|
|
|
58,144 |
|
|
|
57,120 |
|
Segment
revenues |
|
|
258,401 |
|
|
|
267,264 |
|
|
|
490,750 |
|
|
|
509,039 |
|
Other
fee-based revenues from franchised properties |
|
|
7,282 |
|
|
|
6,691 |
|
|
|
13,036 |
|
|
|
11,966 |
|
Corporate
and other |
|
|
32,616 |
|
|
|
33,008 |
|
|
|
61,399 |
|
|
|
62,131 |
|
Intersegment elimination |
|
|
(34,862 |
) |
|
|
(37,408 |
) |
|
|
(67,476 |
) |
|
|
(71,810 |
) |
Total revenues |
|
$ |
263,437 |
|
|
$ |
269,555 |
|
|
$ |
497,709 |
|
|
$ |
511,326 |
|
Adjusted
EBITDA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Owned
Hotels |
|
$ |
80,939 |
|
|
$ |
83,239 |
|
|
$ |
139,660 |
|
|
$ |
151,492 |
|
Franchise
and management |
|
|
31,430 |
|
|
|
30,900 |
|
|
|
58,144 |
|
|
|
57,120 |
|
Segment
Adjusted EBITDA |
|
|
112,369 |
|
|
|
114,139 |
|
|
|
197,804 |
|
|
|
208,612 |
|
Corporate
and other |
|
|
(11,464 |
) |
|
|
(8,728 |
) |
|
|
(24,949 |
) |
|
|
(18,904 |
) |
Total Adjusted EBITDA |
|
$ |
100,905 |
|
|
$ |
105,411 |
|
|
$ |
172,855 |
|
|
$ |
189,708 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADJUSTED OPERATING INCOME NON-GAAP
RECONCILIATION |
(unaudited, in thousands) |
|
|
|
|
Three MonthsEnded
June 30,2017 |
|
|
Three MonthsEnded
June 30,2016 |
|
|
Six MonthsEnded June 30,2017 |
|
|
Six MonthsEnded June 30,2016 |
|
Operating
income (loss) |
|
$ |
49,778 |
|
|
$ |
40,485 |
|
|
$ |
73,750 |
|
|
$ |
(5,035 |
) |
Impairment loss |
|
|
— |
|
|
|
16,217 |
|
|
|
— |
|
|
|
99,560 |
|
Retention
plan |
|
|
3,014 |
|
|
|
— |
|
|
|
5,564 |
|
|
|
— |
|
Reorganization costs |
|
|
2,946 |
|
|
|
— |
|
|
|
5,089 |
|
|
|
— |
|
Loss on
sales |
|
|
— |
|
|
|
(722 |
) |
|
|
138 |
|
|
|
(722 |
) |
Adjusted
operating income |
|
$ |
55,738 |
|
|
$ |
55,980 |
|
|
$ |
84,541 |
|
|
$ |
93,803 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADJUSTED NET INCOME AND ADJUSTED EARNINGS PER
SHARE |
NON-GAAP RECONCILIATION |
(unaudited, in thousands, except per share
data) |
|
|
|
|
Three Months Ended
June 30,2017 |
|
|
Three Months Ended
June 30,2016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income |
|
|
Basic
andDilutedEarningsPerShare |
|
|
Net Income |
|
|
Basic
andDilutedEarningsPerShare |
|
Net Income
attributable to La Quinta Holdings’ |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders |
|
$ |
16,786 |
|
|
$ |
0.14 |
|
|
$ |
14,849 |
|
|
$ |
0.13 |
|
Impairment loss |
|
|
— |
|
|
|
— |
|
|
|
16,217 |
|
|
|
0.14 |
|
Retention
plan |
|
|
3,014 |
|
|
|
0.03 |
|
|
|
— |
|
|
|
— |
|
Reorganization costs |
|
|
2,946 |
|
|
|
0.03 |
|
|
|
— |
|
|
|
— |
|
Loss on
sales |
|
|
— |
|
|
|
— |
|
|
|
(722 |
) |
|
|
(0.01 |
) |
Tax
impact of adjustments |
|
|
(2,384 |
) |
|
|
(0.03 |
) |
|
|
(6,198 |
) |
|
|
(0.05 |
) |
Adjusted Net
Income attributable to La Quinta |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Holdings’ Stockholders |
|
$ |
20,362 |
|
|
$ |
0.17 |
|
|
$ |
24,146 |
|
|
$ |
0.21 |
|
Weighted
average common shares outstanding, basic |
|
|
|
|
|
|
115,985 |
|
|
|
|
|
|
|
117,280 |
|
Weighted
average common shares outstanding, diluted |
|
|
|
|
|
|
116,497 |
|
|
|
|
|
|
|
117,360 |
|
|
|
Six Months Ended
June 30,2017 |
|
|
Six Months Ended
June 30,2016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income |
|
|
Basic
andDilutedEarningsPerShare |
|
|
Net (Loss)Income |
|
|
Basic
andDiluted(Loss)EarningsPerShare |
|
Net Income
(Loss) attributable to La Quinta Holdings’ |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders |
|
$ |
18,375 |
|
|
$ |
0.16 |
|
|
$ |
(23,926 |
) |
|
$ |
(0.20 |
) |
Impairment loss |
|
|
— |
|
|
|
— |
|
|
|
99,560 |
|
|
|
0.83 |
|
Retention
plan |
|
|
5,564 |
|
|
|
0.05 |
|
|
|
— |
|
|
|
— |
|
Reorganization costs |
|
|
5,089 |
|
|
|
0.04 |
|
|
|
— |
|
|
|
— |
|
Loss
(gain) on sales |
|
|
138 |
|
|
|
— |
|
|
|
(722 |
) |
|
|
(0.01 |
) |
Tax
impact of adjustments |
|
|
(4,316 |
) |
|
|
(0.04 |
) |
|
|
(39,535 |
) |
|
|
(0.33 |
) |
Adjusted Net
Income attributable to La Quinta |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Holdings’ Stockholders |
|
$ |
24,850 |
|
|
$ |
0.21 |
|
|
$ |
35,377 |
|
|
$ |
0.29 |
|
Weighted
average common shares outstanding, basic |
|
|
|
|
|
|
115,961 |
|
|
|
|
|
|
|
120,448 |
|
Weighted
average common shares outstanding, diluted |
|
|
|
|
|
|
116,449 |
|
|
|
|
|
|
|
120,448 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADJUSTED EBITDA NON-GAAP
RECONCILIATION |
OUTLOOK: FORECASTED 2017 |
(unaudited, in thousands) |
|
|
|
|
Year Ending December 31, 2017 |
|
|
Low Case |
|
|
High Case |
Adjusted Net
income attributable to La Quinta Holdings’ Stockholders
(1) |
|
$ |
41,820 |
|
|
$ |
53,820 |
Interest
expense (2) |
|
|
84,000 |
|
|
|
84,000 |
Income
tax provision |
|
|
27,880 |
|
|
|
35,880 |
Depreciation and amortization (3) |
|
|
150,000 |
|
|
|
150,000 |
Noncontrolling interest |
|
|
300 |
|
|
|
300 |
EBITDA |
|
|
304,000 |
|
|
|
324,000 |
Share
based compensation expense (4) |
|
|
16,000 |
|
|
|
16,000 |
Adjusted
EBITDA |
|
$ |
320,000 |
|
|
$ |
340,000 |
(1) |
|
This table provides a
reconciliation of forward-looking forecasted Adjusted EBITDA to
Adjusted Net income attributable to La Quinta Holdings’
stockholders that excludes the impact of certain items that are not
expected to have an ongoing effect on the Company’s
operations. |
(2) |
|
Includes interest
expense for $1.7 billion of outstanding indebtedness with a
weighted average interest rate of approximately 4.3%, including the
impact of an interest rate swap, commitment fees for the undrawn
balance of the Company’s revolving credit facility, and
amortization of deferred financing costs. |
(3) |
|
Includes the
amortization of software service agreements. |
(4) |
|
Reflects equity based
compensation expense. |
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.
Contacts:
Investor Relations
Kristin Hays
214-492-6896
investor.relations@laquinta.com
Media
Teresa Ferguson
214-492-6937
Teresa.Ferguson@laquinta.com
La Quinta Holdings Inc. (NYSE:LQ)
Gráfica de Acción Histórica
De Ago 2024 a Sep 2024
La Quinta Holdings Inc. (NYSE:LQ)
Gráfica de Acción Histórica
De Sep 2023 a Sep 2024