Revenue was $82.6 million, a 2.2% decline from the predecessor company's third quarter 2002. The company showed a $600,000 net loss from discontinued operations compared to a $1.6 million loss for the predecessor company in the same period a year ago.
Lodgian also reported a net loss attributable to common stock of $3.6 million, or a loss of 52 cents per share. The predecessor company showed a net loss of $4.6 million, or a 16 cents per share loss.
Earnings before interest, taxes, depreciation and amortization for continuing operations were $16.3 million, up from $16.1 million for the period last year.
Revenue per available room for the 96 hotels that the company controls declined 0.3% for the quarter, reflecting a 0.2% decrease in average daily rate and a 0.1% drop in occupancy. Of the company's hotel portfolio, 82 are under the InterContinental Hotels Group and 10 are affiliated with six other nationally recognized hospitality brands. Five hotels are independent, unbranded properties. The 97th property is controlled by an independent company.
At the end of the third quarter, the company's long-term debt total $485.4 million with an average interest rate of 6.3%.
"We continued to make progress on improving the quality and results at our hotels in third quarter," says Lodgian president and CEO Thomas Parrington. "Even though our stabilized RevPAR decreased slightly during the quarter, the decline was substantially less than in the first six months of 2003." He notes "there were positive signs of an economic rebound in the third quarter but business travel remained sluggish."
In his filing with the Securities and Exchange Commission, Parrington says Lodgian is "focused on significantly improving the physical quality and service at our core hotels." Year-to-date, the company has invested about $28 million in its properties and expect to invest an estimated $75 million by year-end 2004.
"While the short-term impact on results at those hotels is negative, due to the construction disruptions, we are seeing a positive response from our guests and employees at properties where the renovations are complete," the Lodgian chief says.
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