Press Release: Boykin Lodging Company
August 3, 2001
CLEVELAND, OH -- Boykin Lodging Company (NYSE: BOY), a hotel real estate investment trust, yesterday reported financial
results for the second quarter of 2001.
For the three months that ended June 30, 2001, funds from operations (FFO) were $12.9 million, or $0.70 per share,
versus $14.1 million, or $0.76 per share, reported for the same period the year before.
Total revenues for the second quarter of 2001 were $18.6 million, as compared with $19.2 million for the second
quarter of 2000.
On a same-unit basis, second-quarter room revenue per available room (REVPAR) decreased 3.4 percent to $66.63 from
$68.95 for 2000. Occupancy during the second quarter of 2001 decreased to 68.5 percent from 71.2 percent, while
the average daily rate increased to $97.29 from $96.82.
Net income for the 2001 second quarter was $1.2 million, or $0.07 per diluted share, compared to $0.2 million,
or $0.01 per diluted share, for the same period in 2000.
``Our FFO of 70 cents for the quarter was in the range we expected,'' said Robert W. Boykin, chairman and chief
executive officer. ``Current booking trends reflect continued softening demand from the slowing economy and show
no signs that an upturn is likely before the second quarter of 2002. Our outlook is now for REVPAR to decline three
to four percent for the year. With this assumption, FFO would range between $2.19 and $2.25 per share for 2001.
Third-quarter FFO is expected to be between 61 and 63 cents and fourth quarter FFO to be between 34 and 38 cents
per share.''
Through the first six months of 2001, FFO was $23.0 million, or $1.24 per diluted share, versus $24.3 million,
or $1.31 per diluted share, for the same period the year before. Percentage lease revenues for the six-month period
were $32.6 million for 2001 and $33.4 million for 2000.
On a same-unit basis, REVPAR for the first half of 2001 was $63.27 compared with $63.84 for the first half of last
year. Occupancy through the six-month period was 65.4 percent for 2001, compared with 66.9 percent for 2000. Average
daily rate increased to $96.80 from $95.39.
The first-half net income for 2001 was $0.7 million, or $0.04 per diluted share, versus a net loss of $0.5 million,
or $0.03 per share, last year.
The company will hold a conference call with financial analysts to discuss the second-quarter results at 2:00 p.m.
eastern time today, August 2, 2001. A live webcast of the call can be heard on the Internet by visiting the company's
website at www.boykinlodging.com and clicking on the investor relations page or by visiting other websites that
provide links to corporate webcasts.
Boykin Lodging Company is a real estate investment trust that focuses on the ownership of full-service, upscale
commercial and resort hotels. The company currently owns 32 hotels containing a total of 9,030 rooms located in
nineteen states, and operating under such internationally known brands as Doubletree, Marriott, Hilton and Radisson,
among others. For more information about Boykin Lodging Company, visit the company's web site at www.boykinlodging.com
.
This release contains forward-looking statements. Although the company believes its business plans are based upon
reasonable assumptions, it can give no assurance that its expectations will be attained. Factors that could cause
actual results to differ materially from the company's expectations include financial performance, real estate
conditions, execution of hotel acquisition programs, changes in local or national economic conditions, and other
similar variables.
BOYKIN LODGING COMPANY
STATEMENTS OF INCOME and FUNDS FROM OPERATIONS
(Unaudited, amounts in thousands)
Three Months Ended Six Months Ended
June 30, June 30,
OPERATING DATA: 2001 2000 2001 2000
Revenues:
Percentage lease revenue $16,338 $16,986 $32,575 $33,403
Revenue related to
hotel operations 1,987 2,006 3,425 3,264
Interest and other income 305 183 950 346
Total revenues 18,630 19,175 36,950 37,013
Expenses:
Real estate related
depreciation & amortization 7,028 7,423 14,056 15,208
Property taxes, insurance
& ground rent 2,781 2,608 5,506 5,275
General & administrative 1,495 1,339 2,933 2,894
Expenses related to
hotel operations 1,390 1,471 2,626 2,497
Interest expense 5,493 5,816 11,315 11,401
Interest expense -
amortization of financing
costs 301 267 601 534
Gain on property
insurance recovery - - - (407)
Total expenses 18,488 18,924 37,037 37,402
Equity in income (loss) of
unconsolidated joint ventures 618 37 444 (78)
Income (loss) before gain on
sale of assets, minority
interest and one-time effect
of change in accounting
principle 760 288 357 (467)
Gain on sale of assets - - 240 -
Minority interest 412 (50) 483 8
Income (loss) before one-time
effect of change in
accounting principle 1,172 238 1,080 (459)
One-time effect of change
in accounting principle,
net of minority interest
of $32 (a) - - (373) -
Net income (loss) $1,172 $238 $707 $(459)
(a) Reflects one-time effect of adoption of Statement of Financial
Accounting Standards No. 133, "Accounting for Derivative Instruments
and Hedging Activities" as of January 1, 2001.
FUNDS FROM OPERATIONS (FFO)
and EBITDA:
Net income (loss) $1,172 $238 $707 $(459)
Deferred percentage
lease revenue 4,522 6,471 7,825 10,120
Real estate related
depreciation and
amortization 7,028 7,423 14,056 15,208
Minority interest (412) 50 (483) (8)
Gain on property
insurance recovery - - - (407)
Gain on sale of assets - - (240) -
One-time effect of change
in accounting principle - - 373 -
Equity in income of
unconsolidated
joint ventures (618) (37) (444) 78
FFO adjustment related
to joint ventures 1,245 (74) 1,232 (258)
Funds from operations $12,937 $14,071 $23,026 $24,274
EBITDA $19,047 $20,305 $35,591 $36,506
BOYKIN LODGING COMPANY
PER SHARE/UNIT DATA
(Unaudited, share and unit numbers in thousands)
Three Months Ended Six Months Ended
June 30, June 30,
PER SHARE/UNIT DATA: 2001 2000 2001 2000
Income (loss) before one-time
effect of change in
accounting principle
Basic $0.07 $0.01 $0.06 $(0.03)
Diluted $0.07 $0.01 $0.06 $(0.03)
Net income (loss) per share
Basic $0.07 $0.01 $0.04 $(0.03)
Diluted $0.07 $0.01 $0.04 $(0.03)
Weighted average common
shares outstanding
Basic 17,171 17,135 17,166 17,131
Diluted 17,234 17,318 17,217 17,310
FFO per share/unit
Basic $0.70 $0.76 $1.25 $1.32
Diluted $0.70 $0.76 $1.24 $1.31
Weighted average common shares
and units outstanding
Basic 18,462 18,426 18,457 18,422
Diluted 18,525 18,609 18,508 18,601
BOYKIN LODGING COMPANY
SELECTED HOTEL STATISTICS and BALANCE SHEET INFORMATION
(Unaudited, amounts in thousands except statistical data)
Three Months Ended Six Months Ended
June 30, June 30,
SAME-UNIT HOTEL STATISTICS: 2001 2000 2001 2000
Boykin's share of
hotel revenues $78,825 $80,947 $149,126 $152,040
All Hotels (32 Hotels) (a)
Hotel revenues $81,628 $84,989 $153,614 $157,732
REVPAR $66.63 $68.95 $63.27 $63.84
Occupancy 68.5% 71.2% 65.4% 66.9%
Average daily rate $97.29 $96.82 $96.80 $95.39
Comparable Hotels (30 Hotels) (b)
Hotel revenues $77,099 $80,034 $144,493 $148,481
REVPAR $66.72 $68.79 $63.02 $63.73
Occupancy 68.6% 71.3% 65.2% 67.1%
Average daily rate $97.28 $96.49 $96.59 $94.97
Acquired Red Lion
Doubletrees (10 hotels)
Hotel revenues $27,993 $28,441 $53,180 $53,805
REVPAR $63.34 $63.55 $59.59 $58.58
Occupancy 70.8% 73.4% 67.6% 69.1%
Average daily rate $89.53 $86.63 $88.16 $84.82
(a) Includes all hotels owned by Boykin at the end of the quarter,
including predecessors' results.
(b) Includes hotels owned by Boykin in both periods.
SELECTED BALANCE SHEET INFORMATION: June 30, December 31,
2001 2000
Total assets $590,955 $600,593
Total debt $304,961 $311,440
Total shareholders' equity $241,117 $253,266
Cash and cash equivalents including
cash restricted for payment of taxes,
insurance, and capital expenditures $10,520 $11,209
SOURCE: Boykin Lodging Company