Boykin Lodging Company (NYSE: BOY), a hotel real estate investment trust, today reported financial results for the fourth quarter and full year ending December 31, 2000.
For the three months that ended December 31, 2000, funds from operations (FFO) were $7.5 million versus $9.2 million reported for the same period the year before. The fourth-quarter FFO per diluted share was $0.40 for 2000 and $0.50 for 1999.
The company’s fourth-quarter financial results include two noncash items which had no effect on FFO. First, the company adopted an accounting change pursuant to the SEC Staff Accounting Bulletin (SAB) 101, which changes the timing of quarterly revenue recognition but has no effect on FFO, dividends, annual revenues, annual earnings or cash flow. The table that accompanies this release compares 2000’s actual fourth-quarter results with both actual and pro-forma results for the fourth quarter of 1999. The pro-forma results are what the 1999 fourth-quarter numbers would have been if SAB 101 had been adopted as of January 1, 1999.
The second noncash item was a write-down of $7 million against the carrying value of certain Doubletree hotels the company has for sale in the Pacific Northwest. The write-down has no effect on the company’s FFO, dividends, or cash flow, but did reduce 2000’s fourth-quarter net income by $0.38 per share/unit.
Total revenue for the fourth quarter of 2000 was $32.6 million, as compared with $29.6 million (pro forma) or $17.9 million (actual) for the fourth quarter of 1999.
On a same-unit basis, fourth-quarter room revenue per available room (REVPAR) increased 1.8 percent to $56.81 from $55.81 for 1999. Occupancy during the fourth quarter of 2000 was down 1.8 percent to 61.3 percent from 62.4 percent, while the average daily rate increased 3.6 percent to $92.69 from $89.44.
Net income for the 2000 fourth quarter was $5.1 million, or $0.29 per diluted share, compared to $12.3 million, or $0.71 per diluted share, on a pro-forma basis ($1.6 million, or $0.09 per share, on an actual basis) for the same period in 1999.
“Our FFO of 40 cents for the quarter was slightly above what we were expecting,” said Robert W. Boykin, chairman and chief executive officer. “So far in 2001, it looks as though FFO should be between 55 and 57 cents for the first quarter and between 74 cents and 78 cents for the second quarter. Full-year results we would expect to be between $2.50 and 2.55 per share, assuming REVPAR growth of between 2.5 percent and 3.0 percent.”
For all of 2000, FFO was $46.0 million, or $2.47 per diluted share, as compared with $48.2 million in 1999, or $2.62 per diluted share. Total revenues for the year were $93.8 million for 2000 and $86.2 million for 1999.
On a same-unit basis, REVPAR for the year increased 2.1 percent to $63.61 from $62.32 in the prior year. Occupancy for the year was 67.5 percent for 2000, compared with 68.3 percent for 1999. Average daily rate increased to $94.29 from $91.23.
Net income for 2000 was $7.7 million, or $0.45 per diluted share, and $18.1 million, or $1.06 per share, for 1999. Net income for 2000 was reduced by $0.38 per share/unit for the write-down mentioned above and $0.04 per share for a loss on the early extinguishment of debt in the third quarter.
The company will hold a conference call with financial analysts to discuss the fourth-quarter results at 2:00 p.m. eastern time today, February 21, 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.