Press Release: ShoLodge, Inc.
April 2, 2002
HENDERSONVILLE, TN -- ShoLodge, Inc. (Nasdaq: LODG) yesterday announced results for its year ended December 30,
2001. Total revenues were $48.9 million in 2001 compared with $64.1 million in 2000, reflecting the effect of the
sale of 27 Sumner Suites hotel operations in the second quarter of 2000. For the 12 hotels (all Shoney's Inns)
opened for all of both years (same hotels), revenues per available room (RevPAR) were $24.83 in 2001 compared with
$22.90 in 2000, representing an increase of 8.4%. Construction and development revenues were $27.5 million in 2001
compared with $12.0 million in 2000.
Net income for 2001 was $912,000, or $0.16 per share (diluted), after the extraordinary gain on early extinguishments
of debt, net of tax, of $566,000, or $0.10 per share (diluted), compared with $578,000, or $0.10 per share (diluted),
after the extraordinary gain on early extinguishments of debt, net of tax, of $4.6 million, or $0.82 per share
(diluted), in 2000.
For the fourth quarter ended December 30, 2001, total revenues were $14.1 million compared with $7.6 million in
the same period a year ago. Revenues from hotel operations were $2.6 million compared with $3.1 million in the
fourth quarter a year ago. For the 12 hotels (all Shoney's Inns) opened for all of the fourth quarter for both
years (same hotels), RevPAR was $19.48 in the fourth quarter of 2001 compared with $20.15 in the fourth quarter
of 2000, representing a decrease of 3.3%. Construction and development revenues were $9.4 million in the fourth
quarter of 2001 compared with $2.9 million in the fourth quarter of 2000.
The Company reported a net loss of $819,000, or $0.16 per share, after the extraordinary gain on early extinguishments
of debt, net of tax, of $40,000, for the fourth quarter of 2001, compared with a net loss of $1.1 million, or $0.20
per share, after the extraordinary gain on early extinguishments of debt, net of tax, of $98,000, or $0.02 per
share, in the fourth quarter of 2000.
Leon Moore, chief executive officer of ShoLodge, said, ``Results for fiscal 2001 reflect the full year's effect
of the Company's sale of 24 and lease of 3 Sumner Suites hotels to Prime Hospitality Corp. (NYSE: PDQ) completed
at the end of our second quarter of fiscal 2000. Our strategy is to continue to focus on our Shoney's Inn chain,
in which we own 12 and franchise an additional 58 Shoney's Inns, as well as developing hotels and providing management
and reservation services to our Shoney's Inn chain and to third parties.''
This press release contains forward-looking statements relating to certain matters, which reflect management's
best judgment, based on factors currently known and involve risks and uncertainties. Actual results could differ
materially from the anticipated results or expectations expressed in the Company's forward-looking statements.
Forward-looking information provided by the Company pursuant to the safe harbor established under the Private Securities
Litigation Reform Act of 1995 should be evaluated in the context of these factors which are contained in the Company's
Securities and Exchange Commission (SEC) filings, including its periodic reports filed under the Securities Exchange
Act of 1934, as amended. Copies of these filings are available upon request from the Company. In addition, the
Company disclaims any intent or obligation to update these forward-looking statements.
SHOLODGE, INC.
Financial Highlights
(In thousands, except per share amounts)
12 Weeks Ended Year Ended
12/30/01 12/31/00 12/30/01 12/31/00
Total revenues $ 14,076 $ 7,587 $ 48,932 $ 64,078
Hotel revenues $ 2,645 $ 3,114 $ 13,677 $ 46,431
Earnings (loss) before
extraordinary
items $ (859) $ (1,241) $ 346 $ (3,977)
Extraordinary gain
on early
extinguishment of debt 40 98 566 4,555
Net income (loss) $ (819) $ (1,143) $ 912 $ 578
Earnings per common share:
Basic:
Income (loss) before
extraordinary
items $ (0.16) $ (0.22) $ 0.06 $ (0.73)
Extraordinary gain
on early
extinguishment
of debt 0.00 0.02 0.10 0.84
Net earnings (loss)
per share $ (0.16) $ (0.20) $ 0.16 $ 0.11
Diluted:
Income (loss) from
continuing operations
before extraordinary
items $ (0.16) $ (0.22) $ 0.06 $ (0.72)
Extraordinary gain
on early
extinguishment
of debt 0.00 0.02 0.10 0.82
Net earnings (loss)
per share $ (0.16) $ ( 0.20) $ 0.16 $ 0.10
Average shares outstanding:
Basic 5,234 5,607 5,465 5,472
Diluted 5,274 5,692 5,530 5,554
SOURCE: ShoLodge, Inc.