Company reports FFO of $68 million from ongoing operations;
Actual results reflect $27 million of non-recurring charges
and write-offs; Owned hotels increase RevPAR by 4.3%;
Wyndham-branded comparable hotels report 8.1%
rise in RevPAR
Patriot American Hospitality, Inc. and Wyndham International, Inc. whose shares (NYSE:PAH) are paired and trade as a single unit, today announced combined results for the fourth quarter and fiscal year ended December 31, 1998. For the fourth quarter, combined funds from operations (FFO) increased 24.6% to reach $41.7 million, or 22 cents per share on a diluted basis, compared to FFO of $33.4 million, or 35 cents per share, for the fourth quarter of 1997. These results reflect approximately $27 million in non-recurring charges and write-offs. Total revenue for the fourth quarter was $630.3 million, representing a 249.6% increase over the $180.3 million reported in 1997. Fourth-quarter earnings before interest, taxes, depreciation and amortization, losses on asset sales and impairments, and other one-time charges (EBITDA) reached $140.6 million, a 161.2% increase over the $53.8 million for the 1997 fourth quarter.
As required by Generally Accepted Accounting Principles (GAAP), for the fourth quarter, the Companies reported a combined net loss of $91 million, or $1.08 per share (diluted) after preferred stock dividends of $37 million and adjustment for equity forwards of $60.9 million. The net loss included approximately $85 million for liquidity-related, one-time charges comprised of transaction, termination expenses and professional fees as well as other fees related to Y2K analysis, costs associated with the Company`s legislative efforts, subsequent restructuring analysis fees and impairments in value of assets held for sale as well as losses on assets sold in the fourth quarter.
For the fiscal year ended December 31, 1998, total revenue increased by 514% to reach $2.1 billion compared to $335 million reported in 1997. The increase reflects the increase in the size of the Company`s portfolio over the last year and the completed mergers with Wyndham Hotel Corporation, Interstate Hotels Company, Summerfield Hotel Corporation, WHG Resorts and Casinos, and Arcadian International LLC. Funds from operations (FFO) increased by 136.3% to $263.6 million, or $1.61 per share on a diluted basis, for the 1998 fiscal year, compared to $111.5 million in 1997.
Fourth-quarter 1998 operating performance across the Companies` owned portfolio improved over the year-ago period as reflected in a 4.3% increase in revenue per available room (RevPAR), a 5.7% increase in average daily rate (ADR), and a rise in gross operating profit margin (GOP margin) from 33.4% to 35.4%. Gross operating profit per room for the quarter increased 12.1% to $45.38 from $40.49 last year. Occupancy contracted modestly by less than one percentage point, 68.1% last year to 67.2% in this year`s fourth quarter.
Across Wyndham`s comparable branded portfolio of owned and managed hotels (properties in the portfolio for one full common fiscal quarter in both periods presented), fourth-quarter operating performance improved over the 1997 fourth quarter as reflected in an 8.1% increase in RevPAR, a 7.2% increase in ADR, and 20.7% in GOP per available room.