Press Release: ICON Group International, Ltd.
September 18, 2002
SAN DIEGO, CA -- ICON Group International Ltd. yesterday released two of the most comprehensive studies to date
on labor productivity and vertical gap analysis benchmarks for Lodgian, Inc. (OTC BB:LODNQ.OB).
The Report has benchmarked Lodgian, Inc. against competing firms in the Hotels and Motels industry worldwide— going
beyond traditional methods of company benchmarking. The results are two specialized reports: (1) global financial
benchmarks using common-size statement ratios (vertical analysis), and (2) labor-productivity and utilization measures
collected across borders. Parker notes, "With the globalization of markets, greater foreign competition, and
the reduction of entry barriers, it becomes all the more important to benchmark a company's financial indicators
on a worldwide basis. World stock markets have recently witnessed a return to fundamental financial analysis. Sound
management as opposed to hype will in the long run generate shareholder value."
The methodologist for this unique study is Philip Parker, Eli Lilly Chair Professor of Innovation, Business and
Society at INSEAD (Fontainebleau, France and Singapore). According to Professor Parker, "We created these
reports in response to two inescapable trends: a return to fundamentals and globalization." The goal of these
reports is to assist consultants, financial managers, strategic planners, and corporate officers in gauging indicators
of Lodgian, Inc.'s human resource and financial structure.
Professor Parker states, "We are intrigued by the wide variations in basic financial and productivity measures
between Lodgian, Inc. and other Hotels and Motels companies. The Earnings Before Interest And Taxes (EBIT), for
example, varied from -4.47 to 59.8. We see this type of variation in the hundreds of ratios that we estimate."
What do the reports cover?
Two reports, labor productivity ratios and vertical analysis ratios, are available for Lodgian, Inc.. Each report
reveals productivity and industry ranks for companies in the Hotels and Motels industry.
The labor productivity analysis details the following: What has been the ratio of short-term and long-term assets
to employee? What are typical capital-labor ratios? What are the average sales and net profits per employee compared
to global benchmarks?
The vertical analysis answers the following questions: How has Lodgian, Inc.'s asset structure varied compared
to global benchmarks for the Hotels and Motels industry? Does it generally hold more cash and other short-term
assets, or does it tend to concentrate its assets in physical plant and equipment? On the liability side, does
Lodgian, Inc. typically have a higher percent of payables compared to the benchmarks, or does it hold a higher
concentration of long-term debt? Does Lodgian, Inc. have a relatively higher cost of goods sold, operating costs,
or income taxes compared to global benchmarks? Have Lodgian, Inc.'s returns on equity been higher or its profit
margins greater?
Reports for over 50 Hotels and Motels companies are available now including:
Arlington Hospitality, Inc., Boca Resorts inc., Boyd Gaming Corporation, Candelwood Hotel Company, Inc., Choice
Hotels International, Inc., Crestline Capital Corpn, Extended Stay America Incorporated, Harrah's Entertainment
Incorporated, Hilton Hotels Corporation, Isle Of Capri Casino Incorporated, Janus Hotels And Resorts, Inc., Mandalay
Resort Group, Marcus Corp., Marriott International, Inc, Meristar Hotels & Resorts, Inc., Monarch Casino &
Resort, Inc., Park Place Entertainment Corporation, Prime Hospitality Corporation, Sonesta International Hotels
Corporation, Starwood Hotels & Resorts Worldwide Incorporated, Station Casinos Incorporated, Suburban Lodges
Of America, Inc., Vail Resorts Inc., WestCoast Hospitality Corporation
How do they do that? : Methodology
While most vertical analyses merely focus on benchmarking against domestic ratios, often published by government
agencies or commercial sources, the report calculates thousands of industry norms by looking at firms at the global
level. It pools statistics on tens of thousands of companies across over 40 countries, and applies a seven-stage
methodology: (1) identification of industry classifications, (2) firm-level data collection and aggregation, (3)
standardization of raw statistics, (4) filtering outliers, (5) calculation of global norms, (6) projection of deviations
and gaps, and (7) projection of ranks and percentiles. For each part of the financial statement, the larger structural
differences and gaps between Lodgian, Inc. and the global benchmarks are provided with summary tables of ranks
and percentiles.
Previously available only through booksellers such as Amazon.com, Barnes and Noble, and Hoovers, two studies are
now available direct from the publisher at a 50% discount off the cover price. This special offer includes Labor
Productivity, Utilization and Global Benchmarks and Vertical Analysis and International Financial Benchmarks at
US$ 199.90 ($99.95 each). E-mail iconsubs@san.rr.com for more information.
About ICON Group Ltd.
ICON Group Ltd. assists managers with global benchmarking, gap analysis, and productivity studies. Clients can
create their own benchmarks by choosing their competitors from among over 20,000 companies.
ICON Group Ltd.
4370 La Jolla Village Drive, Fourth Floor
San Diego, CA 92122
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Contact:
Contact: Ula Tuszewicka
Company: ICON Group Ltd.
Voice: 858-546-4345
Fax: 858-546-4341
Email: iconsubs@san.rr.com
Source: ICON Group International, Ltd.