Press Release: WestCoast Hospitality Corporation
February 9, 2001
SPOKANE, WA -- WestCoast Hospitality Corporation (NYSE: WEH) yesterday announced financial results for the fourth
quarter and year ended December 31, 2000. During the quarter, total revenues increased $2.5 million, or 9.5%, from
$26.2 million in the fourth quarter of 1999 to $28.7 million during the same period of 2000. During the same period,
EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) increased $1.5 million, or 28.5%, from
$5.2 million in 1999 to $6.7 million in 2000. EBITDA as a percentage of revenues increased to 23.4%, from 19.9%
in the fourth quarter of 1999. Cash flow per share during 2000 was $1.39, or $18.0 million. For the quarter, Earnings
Per Share decreased from $.06 for the fourth quarter of 1999 to $.03 for the fourth quarter 2000. Guidance given
by the Company during its third quarter conference call was $.01 to $.03, putting results for the quarter at the
high end of the range. For the first quarter of 2001, the Company expects Earnings Per Share of $.01 to $.04, as
compared to a loss of $.01 during the first quarter of 2000. For the year ending December 31, 2001, the Company
expects Earnings Per Share of $.51 to $.62, an increase over 2000 EPS of 13.3% to 37.8%. During 2001, the Company
expects Cash Flow per share of $1.46 to $1.62. Please see Supplemental Information #1 and #2 for further information.
``Both our Hotels and Restaurants and our Real Estate divisions performed quite well in bringing revenues to the
bottom line during the fourth quarter,'' said Don Barbieri, Chairman, President and CEO, WestCoast Hospitality
Corporation. ``At the property level, managers are closely monitoring the unstable macro economic environment,
and proactively adjusting their expenses accordingly. These proactive measures translated to great EBITDA growth
this quarter and positions us to compete quite effectively in the upcoming months.'' During the quarter, interest
expense increased $1.4 million, or 58.2%, from $2.3 million in the fourth quarter of 1999, to $3.7 million during
the same period in 2000. ``We expect that the reduction in interest rates, combined with our pay down of debt in
connection with the sale of non-core real estate assets, will allow us to bring that great EBITDA growth down to
net income.''
During the quarter, Combined Hotel room revenue grew 2.3% while RevPAR (Revenue Per Available Room) grew .8%, from
$46.77 in the fourth quarter of 1999 to $47.15 in the fourth quarter of 2000. Due to renovations in the fourth
quarter of 1999, there were fewer rooms available during that period, leading to higher revenue growth this year,
but less RevPAR growth because of the additional rooms available in 2000. During the same period, ADR (Average
Daily Rate) increased $2.7%, while occupancy declined 1.0%. The Company added two hotels to the WestCoast Hotel
chain during the quarter. The Ashland Springs Hotel in Ashland, Oregon opened after a historic renovation of the
former Mark Antony Hotel and the WestCoast Cape Fox Lodge in Ketchikan, Alaska joined the company as a new franchisee.
``We are taking steps to increase our market presence and attract quality franchisees to our brand,'' said Tom
Barbieri, Executive Vice President, Hotel Division. ``With the rollout of our new guest affinity program, WestAwards,
we are keeping guests within the brand and introducing customers from the former Cavanaughs brand to the WestCoast
Hotels in cities where there never used to be a sister property. Likewise, we are introducing those original WestCoast
customers to former Cavanaughs Hotels that have been re-branded to WestCoast. The WestAwards program is a great
incentive for guests to choose to stay with us throughout the West.'' WestAwards was launched in mid December and
has awarded over 7 million points to customers. The rate at which customers are enrolling in the program has increased
every week since Christmas. Customers are awarded points for every eligible dollar spent when staying at a WestCoast
Hotel.
WestCoast has also recently converted the Global Distribution System chain code for former Cavanaughs Hotels (re-branded
as WestCoast Hotels) to ``WX,'' unifying all WestCoast Hotels under the same chain code. The Company believes the
marketing of the brand to travel agents under the unified chain code will benefit the chain.
During the quarter, TicketsWest signed ticket agreements that bolstered the division's presence throughout Colorado
and that are expected to positively impact the division in the first quarter of 2001. TicketsWest signed multi-year
ticketing agreements with Major League Baseball's Colorado Rockies and, most recently, a multi-year ticketing agreement
with Pikes Peak International Raceway in Fountain, Colorado. In connection with the Colorado Rockies agreement,
TicketsWest expanded its relationship with King Soopers grocery chain to provide an outlet distribution system
in over 80 King Sooper stores. TicketsWest also sells ski lift tickets to Colorado ski resorts through King Soopers.
``We are very excited with the direction TicketsWest is taking in Colorado,'' said Jack Lucas, Vice President,
TicketsWest. ``We now have in place the best distribution system in the state and we are seeing strong interest
from venues throughout the area.'' Lucas added, ``We had tough year on year comparisons for the division during
the quarter. In the fourth quarter of 1999 we had a long run of Miss Saigon, compared to half as many presentations
this year of the musical Ragtime, at a lower price point.'' Increased expenses in the division's call center associated
with the rollout of the WestAwards program and training during the quarter, an overall event mix of lower margin
business, and fewer than anticipated events being booked at venues for which TicketsWest provide ticketing contributed
to the year on year decline in the division.
In the Real Estate division, revenues increased during the quarter 10.5%, from $2.3 million in 1999 to $2.6 million
in 2000. Expenses decreased during the quarter, from $1.1 million in 1999 to $1.0 million in the fourth quarter
of 2000. The real estate division recently signed a commercial lease with XO Communications, formerly Nextlink,
which brings the occupancy in the office portion of the Company-owned Crescent Building to 95%. During the quarter,
WestCoast listed a number of non-core real estate assets for sale and is in various stages of negotiation on a
number of these assets. The Company plans to divest of its ownership in commercial real estate, however the Company
plans to continue to grow the management and services provided to third party owners.
Increases to interest expense, depreciation and amortization of tangible assets, as well as amortization of goodwill
contributed to the decline in Earnings Per Share for the year and the quarter. The Company is in the process of
refinancing a large portion of the Company's debt that could lead to savings of $1.1 million in 2001. In addition
to a reduction in interest rates, the Company expects to reduce the amortization of goodwill significantly in the
second half of 2001 as the FASB is expected to adopt an impairment only approach to accounting of goodwill. This
approach would translate to savings of approximately $.04 per share in the second half of 2001 for the Company.
WestCoast Hospitality Corporation owns, manages and franchises full-service hotels in 9 western states. WestCoast
Hotels are three and four diamond properties and focus on serving business, convention and leisure travelers. WestCoast
Hotels is now offering WestAwards, an exciting new rewards program that allows customers to earn points toward
complimentary hotel nights, air travel, entertainment tickets, merchandise and more. WestCoast provides entertainment
services through TicketsWest, including event ticketing for venues in the Western United States and Canada, and
aggregates content for travel and entertainment that is sold in real-time at its www.ticketswest.com website. TicketsWest
also includes WestCoast Entertainment, a Broadway and special event presenting company. G&B Real Estate Services
is the real estate division of WestCoast Hospitality Corporation and owns and manages commercial and residential
properties. Registered trademarks of WestCoast Hospitality Corporation protect the use of ``WestCoast,'' ``TicketsWest''
and ``WestAwards.''
This release and supplemental information contains forward looking statements which are made pursuant to the Safe
Harbor provisions of the Private Securities Litigation Reform Act of 1995, including those concerning the future
products and activities of the Company. Investors are cautioned that all forward looking statements involve risks
and uncertainties, including without limitation, risks relating to the operation of hotels, the availability of
capital to finance growth, disruptions in service due to construction, the historical cyclicality of the lodging
industry, the integration of acquisitions, including WestCoast Hotels, the early development stage of the Company's
TicketsWest product and its dependence on increased ticket sales, the unpredictability and potential fluctuations
in future revenues and operating results, as well as the other matters discussed under the headings ``business''
and ``risk factors'' in the Company's annual report on Form 10K for the 1999 fiscal year and other matters disclosed
in the documents filed by the Company with the Securities and Exchange Commission. The Company's actual results
could differ materially from these statements.
Supplemental Information #1
WestCoast Hospitality Corporation
Summary Statements of Income
(unaudited)
(in thousands)
Three months ended December 31,
2000 1999 $ Change % Change
Revenues under Management(A) $48,343 $30,531 $17,812 58.3%
Revenues:
Hotels & Restaurants $23,480 $21,168 $2,312 10.9%
Franchise, Central Services and
Development 1,050 1,050
TicketsWest 1,471 2,606 (1,135) -43.6%
Real Estate Division 2,578 2,333 245 10.5%
Corporate Services 77 64 13 20.4%
Total Revenues 28,656 26,171 2,485 9.5%
Operating Expenses:
Hotels & Restaurants 18,723 17,027 1,696 10.0%
Franchise, Central Services and
Development 339 339
TicketsWest 1,625 2,563 (938) -36.6%
Real Estate Division 1,047 1,120 (73) -6.4%
Corporate Services 44 185 (141) -76.2%
Depreciation and Amortization of
Tangible Assets 2,431 2,021 410 20.3%
Amortization of Goodwill 227 27 200 740.4%
Total Direct Expenses 24,436 22,943 1,493 6.5%
Undistributed Corporate Expenses 180 64 116 178.9%
Total Expenses 24,616 23,007 1,609 7.0%
Operating Income 4,040 3,164 876 27.6%
Other Income (Expense):
Interest Expense (3,711) (2,346) 1,365 58.2%
Interest Income 114 105 9 8.9%
Other Income 38 5 33 700.7%
Conversion Expenses (14) 14
Equity in Investments 3 3
Minority Interest in Partnerships (3) 50 (53) -105.7%
Income Before Income Taxes 467 978 (511) -52.3%
Income Tax Provision 122 238 (116) -48.8%
Net Income $345 $740 $(395) -53.4%
EBITDA $6,698 $5,212 $1,486 28.5%
EBITDA % of Revenues 23.4% 19.9% 3.5%
(A) Includes WestCoast Hospitality Corporation revenues
and revenues of third party owned properties under
Company management.
WestCoast Hospitality Corporation
Earnings Per Share and Pro Forma Hotel Statistics
(unaudited)
Three months ended December 31,
2000 1999 $ Change % Change
Weighted Shares of Stock
Outstanding 12,941,001 12,878,478
Weighted OP Units Outstanding 295,965 295,965
Total OP and Stock Shares
Outstanding 13,236,966 13,174,443
Earnings per Share of Stock $0.03 $0.06 $(0.03) -50.0%
Hotel Statistics:
Combined (Owned, Managed and
Franchised)
Occupancy 55.2% 56.2% -1.0%
Average Daily Rate $85.41 $83.18 $2.23 2.7%
RevPAR $47.15 $46.77 $0.38 0.8%
Room Revenue $36,368,219 $35,537,711 $830,508 2.3%
WestCoast Hospitality Corporation
Summary Statements of Income
(unaudited)
(in thousands)
Year ended December 31,
2000 1999 $ Change % Change
Revenues under Management(A) $212,173 $127,211 $84,962 66.8%
Revenues:
Hotels & Restaurants $106,540 $92,808 $13,732 14.8%
Franchise, Central Services and
Development 3,643 3,643
TicketsWest 5,705 7,181 (1,476) -20.6%
Real Estate Division 9,540 9,649 (109) -1.1%
Corporate Services 378 417 (39) -9.2%
Total Revenues 125,806 110,055 15,751 14.3%
Operating Expenses:
Hotels & Restaurants 78,626 68,150 10,476 15.4%
Franchise, Central Services and
Development 1,207 1,207
TicketsWest 5,702 6,683 (981) -14.7%
Real Estate Division 4,378 4,469 (91) -2.0%
Corporate Services 227 181 46 25.6%
Depreciation and Amortization of
Tangible Assets 9,578 7,904 1,674 21.2%
Amortization of Goodwill 874 28 846 3066.3%
Total Direct Expenses 100,592 87,415 13,177 15.1%
Undistributed Corporate Expenses 1,666 1,605 61 3.8%
Total Expenses 102,258 89,020 13,238 14.9%
Operating Income 23,548 21,035 2,513 11.9%
Other Income (Expense):
Interest Expense (14,660) (9,384) 5,276 56.2%
Interest Income 315 367 (52) -14.2%
Other Income 186 21 165 774.0%
Conversion Expenses (246) 246
Equity in Investments 100 100
Minority Interest in Partnerships (116) (130) (14) -11.3%
Income Before Income Taxes 9,127 11,909 (2,782) -23.4%
Income Tax Provision 3,306 3,737 (431) -11.6%
Income Before Extraordinary Expense
and Cumulative Effect of Change in
Accounting Principle 5,821 8,172 (2,351) -28.8%
Extraordinary Expense, net of taxes (10) (10)
Cumulative Effect of Change in
Accounting Principle, net of taxes (133) (133)
Net Income $5,821 $8,029 $(2,208) -27.5%
EBITDA $34,000 $28,967 $5,033 17.4%
EBITDA % of Revenues 27.0% 26.3% 0.7%
Cash Flow(B) 18,019 18,793 (774) -4.1%
(A)Includes WestCoast Hospitality Corporation revenues
and revenues of third party owned properties under
Company management.
(B)Net cash provided by operating activities excluding
changes in current assets and liabilities
WestCoast Hospitality Corporation
Earnings and Cash Flow Per Share and Pro Forma Hotel Statistics
(unaudited)
Year ended December 31,
2000 1999 $ Change % Change
Weighted Shares of Stock
Outstanding 12,941,407 12,754,686
Weighted OP Units
Outstanding 295,965 340,896
Total OP and Stock Shares
Outstanding 13,237,372 13,095,582
Earnings per Share of
Stock $0.45 $0.63 $(0.18) -28.6%
*Cash Flow per Share of
Stock $1.39 $1.47 $(0.08) -5.4%
Hotel Statistics:
Combined (Owned, Managed
and Franchised)
Occupancy 63.2% 62.9% 0.3%
Average Daily Rate $86.98 $84.52 $2.46 2.9%
RevPAR $54.94 $53.12 $1.82 3.4%
Room Revenue $168,411,545 $161,170,785 $7,240,760 4.5%
*Net cash provided by operating activities excluding changes in current
assets and liabilities
WestCoast Hospitality Corporation
Consolidated Balance Sheets at December 31, 2000 and 1999
(unaudited)
(in thousands, except per share data)
2000 1999
Assets:
Current assets:
Cash and cash equivalents $3,476 $4,357
Accounts receivable 6,232 7,548
Income taxes refundable 5 --
Inventories 1,130 1,110
Prepaid expenses and deposits 733 883
Total current assets 11,576 13,898
Property and equipment, net 242,548 243,237
Intangible assets, net 28,897 29,613
Other assets, net 21,813 22,384
Total assets $304,834 $309,132
Liabilities:
Current liabilities:
Accounts payable $3,432 $4,739
Accrued payroll and related
benefits 2,453 3,024
Accrued interest payable 708 721
Income taxes payable -- 457
Other accrued expenses 5,052 8,994
Long-term debt, due within one
year 2,393 7,445
Capital lease obligations, due
within one year 529 623
Total current liabilities 14,567 26,003
Long-term debt, due after one year 52,861 57,516
Notes payable to bank 106,500 101,263
Capital lease obligations, due after
one year 657 1,103
Deferred income taxes 16,631 15,617
Minority interest in partnerships 2,881 2,798
Total liabilities 194,097 204,300
Commitments and contingencies
Stockholders' equity:
Preferred stock -- 5,000,000 shares
authorized; $0.01 par value;
no shares issued and outstanding -- --
Common stock - 50,000,000 shares
authorized; $0.01 par value;
12,933,106 and 12,925,276 shares
issued and outstanding 129 129
Additional paid-in capital 83,845 83,761
Retained earnings 26,763 20,942
Total stockholders' equity 110,737 104,832
Total liabilities and
stockholders' equity $304,834 $309,132
WestCoast Hospitality Corporation
Consolidated Statements of Cash Flows
Years ended December 31, 2000 and 1999
(unaudited)
(in thousands)
2000 1999
Operating activities:
Net income $5,821 $8,029
Adjustments to reconcile net income
to net
cash provided by operating
activities:
Depreciation and amortization 10,452 7,932
Loss on disposition of property
and equipment 194 --
Deferred income tax provision 1,524 2,392
Minority interest in partnerships 116 130
Equity in Investments (100) --
Extraordinary item, write-off of
deferred loan fees -- 10
Cumulative effect of change in
accounting principle -- 133
Compensation expense related to
stock issuance 12 167
Change in current assets and
liabilities:
Accounts receivable 1,316 (524)
Inventories (20) (158)
Prepaid expenses, deposits and
income taxes refundable 145 (1,559)
Accounts payable and income
taxes payable (2,275) 875
Accrued payroll and related
benefits (571) (51)
Accrued interest payable (13) (896)
Other accrued expenses (4,647) 2,587
Net cash provided by
operating activities 11,954 19,067
Investing activities:
Additions to property and equipment (7,739) (10,829)
Cash paid for acquisition of property
and equipment or subsidiaries, net of
cash received -- (1,079)
Issuance of note receivable -- (358)
Cash received from partnership
investments 575 --
Other, net (318) (1,306)
Net cash used in investing
activities (7,482) (13,572)
Financing activities:
Distributions to stockholders and
partners (32) (118)
Proceeds from note payable to bank 15,137 8,680
Repayment of note payable to bank (9,900) (11,260)
Repayment of long-term debt (9,706) (1,633)
Proceeds from issuance of common
stock under employee stock purchase plan 175 101
Principal payments on capital lease
obligations (648) (656)
Additions to deferred financing costs (379) (519)
Net cash used in financing
activities (5,353) (5,405)
Change in cash and cash equivalents:
Net increase (decrease) in cash and
cash equivalents (881) 90
Cash and cash equivalents at
beginning of period 4,357 4,267
Cash and cash equivalents at end of
period $3,476 $4,357
Supplemental Information #2
(1) What is the estimated range of Revenue, EBITDA, Cash Flow, Net Income, EPS and cash flow per share for each
quarter in 2001? How does this compare to 2000?
Year 2001 Performance Guidance
As of February 8, 2001
(in thousands except per share statistics)
Prior
Year
Q1 Q2 Q3 Q4 Total Variance
Revenue High 29,000 36,000 39,000 31,000 135,000 7%
Low 27,500 33,500 37,000 29,000 127,000 1%
Average 28,250 34,750 38,000 30,000 131,000 4%
2000
Actual 27,209 33,031 36,910 28,656 125,806
EBITDA High 6,300 10,000 13,500 6,700 36,500 7%
Low 5,800 9,500 12,500 6,300 34,100 0%
Average 6,050 9,750 13,000 6,500 35,300 4%
2000
Actual 5,722 9,373 12,207 6,698 34,000
Cash Flow High 21,000 17%
Low 19,000 5%
Average 20,000 11%
2000
Actual 18,019
Net
Income High 519 2,466 4,677 390 8,052 38%
Low 130 2,077 4,287 130 6,624 14%
Average 324 2,271 4,482 260 7,337 26%
2000
Actual (147) 1,939 3,684 345 5,821
Earnings Per
Share High $0.04 $0.19 $0.36 $0.03 $0.62 38%
Low $0.01 $0.16 $0.33 $0.01 $0.51 13%
Average $0.03 $0.18 $0.35 $0.02 $0.58 29%
2000
Actual $(0.01) $0.15 $0.28 $0.03 $0.45
Cash Flow
Per
Share (A) High 1.62 17%
Low 1.46 5%
Average 1.54 11%
2000 Actual 1.39
A. Net cash provided by operating activities excluding changes in current
assets and liabilities
(2) If interest rates continue falling, what would be the impact on WHC earnings?
Based on the December 31, 2000 outstanding balance of $106.5 million on the Revolving Credit Facility, a change
in interest rates of 1 percentage point would impact the annual interest expense by $1.1 million. After tax, this
change would contribute approximately 5 cents to the EPS. The Company is currently in the process of refinancing
approximately $70 million of the Revolving Credit Facility to 10 year fixed rate financing. At this time the preliminary
quotes we have received would reduce the interest rate on this portion of the debt by 1 to 1.5 percentage points
from the average rate for 2000.
(3) If the FASB adopts an impairment-only approach to accounting for goodwill, what affect will it have on WHC?
The FASB (Financial Accounting Standards Board) has proposed establishing new rules sometime in the early part
of July 2001, which would eliminate the requirement for companies to amortize goodwill and would require a write-down
of the value only in the event of impairment. Beginning with this announcement we have modified our income statement
to identify on a separate line the amount of goodwill for intangible assets the Company currently is amortizing.
For the year ended December 31, 2000 the amount was $874 thousand. Amortization of goodwill is not tax deductible
therefore it does not change the provision for tax amount and would impact EPS by approximately 7 cents on an annual
basis. If implemented in July 2001, this would impact EPS by approximately 4 cents for the last two quarters of
the year 2001.
(4) What effective tax rate is expected for this year?
The provision for tax for the year 2000 was 36.2%; this amount is expected to be 36.7% in 2001.
(5) What is the status of non-core real estate dispositions and how will they affect the Real Estate Division?
The Company has identified approximately $78 million of real estate assets that are targeted for sale and $69 million
of those assets have been listed as Priority Sale. Of that amount, the Company has signed listing agreements representing
$60 million. G&B Real Estate Services has been in business for more than 60 years and the vast majority of
management accounts have been third party managed properties. It has only been in the past 15 years that G&B
Real Estate Services has developed, for it's own account, the office and retail product we are now selling. The
Company intends to continue to grow its management and services business for third party owners.
(6) What effect has the brand name change to WestCoast had on the former Cavanaughs properties?
The Company is pleased with the marketplace acceptance of the re-flag of the 13 former Cavanaughs properties to
WestCoast. The total room revenue for the last 6 months of 2000 for the 13 former Cavanaughs properties increased
over previous year. If results from the weak downtown Salt Lake hotel market are removed from the group, the increase
is 1.7% over the previous period. Historically, large flag changes in the northwest have been met with initial
drops in room revenue, so the Company is pleased with the results. With the new WestAwards guest affinity program
and the February 1, 2001 GDS code change from CV to WX, the Company feels that integration and growth of the WestCoast
flag will be strong.
(7) How has the integration of the WestCoast brand with the Cavanaughs brand been perceived by clientele of both
hotel companies?
Clients of both Cavanaughs Hospitality Corporation and WestCoast Hotels, Inc. have welcomed the joining of the
two companies as they now have more opportunities to place their business with the Company. Both companies had
a very loyal base of clients, and also shared that client base in cities where there was only one or the other
hotel companies. Both companies also had the same standards of customer service and hotel amenities, which makes
it easy for sales operations in all of the hotels to refer their client to their sister hotels in other cities.
The advantage of having 45 locations throughout the western United States gives clients the option of staying with
one hotel company as their travels flow them from one WestCoast city to another.
(8) What accounts for the drop in revenue and departmental profit percentage in TicketsWest and what are the primary
revenue sources for
the division?
The primary drop in revenue and departmental profit percentage are attributable to fewer shows being presented
when compared to 1999, and 4th Qtr 1999. The mix of number of productions presented and fewer performances per
production being presented are significant contributors. There has also been an increase in the costs of the 800
Center due to additional labor resources and training. Continued Web Development has also contributed to the increased
expenses. The majority of the web development has been completed and looking forward, web costs will be attributed
more to the maintenance of the current web site.
(9) How does the WestAwards program stack up against the programs of large national competitors?
The WestAwards program provides a guest with great flexibility in earning awards. Like most programs, points are
earned that can be later redeemed for overnight stays, airmiles, air travel, merchandise and entertainment awards.
There are some unique features that compare favorably to other programs. For instance, besides HHonors, WestAwards
is the only other program that offers both points and miles for frequent guests. Additionally, the guest does not
have to be a member of an airline frequent flyer program to earn free travel. This feature allows guests to redeem
points for air travel to more destinations than would normally be available through his/her airline frequent flyer
program.
(10) What synergies have you been able to capitalize on between the Hotel division and TicketsWest?
The Hotel Division and TicketsWest are able to offer their respective customers added services in a one-stop shopping
format. The content of TicketsWest is easily packaged with hotel rooms to give a value-added approach to serving
the customer. As leisure and business customers at the hotels look for entertainment during their stay, WestCoast
is able to offer solutions in a number of markets. For TicketsWest, when customers can be identified as traveling
a long distance for an event, a hotel room can be offered at the time the reservation is made. Over 50% of subscribers
to WestCoast Entertainment's Broadway Series travel from a distance of over 60 miles for each performance.
(11) How will energy costs and availability impact your business?
WestCoast Hotels have already put into place energy conservation plans that will save energy and money without
impacting guest comfort. These plans include temperature setbacks of non-occupied areas of the hotels, utilizing
more energy efficient lighting and installing timers and motion sensors to control lighting periods, and close
management of utilities used in food production and laundry. WestCoast wants to be good stewards of our natural
resources and do our fair share in being responsible users of energy.
(12) How is Salt Lake City performing?
Salt Lake City continues its preparation for the thousands of athletes, spectators and members of the media that
will participate in the 2002 Olympic Winter Games bringing with them millions of dollars in visitor spending sure
to bolster the local economy. Road construction is winding down and it is now much easier to move in and about
the city. New hotels have opened that have added more rooms to the Salt Lake room inventory. Beginning in August
2001 the Salt Palace will begin providing space for the Olympic Committee and eventually provide full use of the
facility for pre-Olympic Games needs. This will eliminate the ability for citywide conventions and will have a
short-term negative impact on city occupancy levels.
(13) How do you plan to get better analyst coverage?
The Company intends to increase communication with analysts in 2001 as the Company returns to positive year on
year earnings trends. The Company will increase direct communication to shareholders in expanded earnings releases
such as this one, webcasts and other releases to keep shareholders informed of earnings expectations and other
pertinent information relating to the future prospects of the Company.
(14) What is the status of any Stock buyback plan?
The Company currently has authority from its Board of Directors to repurchase approximately $6 million of stock.
The Company is currently not acquiring its stock but will continue to evaluate the best way to lower its debt level
and increase shareholder value. As of December 31, 2000 the terms of the Revolving Credit Facility would have precluded
the company from paying dividends or redeeming its stock.
--------------------------------------------------------------------------
CONTACT:
Stephen Barbieri, VP, Chief Communications Officer, 509-323-7211, or InvestorRelations@WestCoastHotels.com.
SOURCE: WestCoast Hospitality Corporation