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TheStreet Open House

MHI Hospitality Corporation Reports Financial Results For Second Quarter 2011

MHI Hospitality Corporation (NASDAQ: MDH) (the “Company”), a self-managed and self-administered lodging real estate investment trust (a “REIT”), today reported its consolidated results for the second quarter ended June 30, 2011. The Company’s results include the following *:

       
Three months ended Six months ended
June 30, 2011     June 30, 2010 June 30, 2011     June 30, 2010
($ in thousands except per share data)
 
Total Revenue $ 23,130 $ 21,510 $ 41,665 $ 39,025
Net income (loss) attributable to the Company

(183

)

256

(1,172

)

(524

)

 
EBITDA 5,655 5,696 9,313 9,024
Adjusted EBITDA 6,135 5,432 9,719 8,377
Hotel EBITDA 6,597 6,042 10,454 9,419
 
FFO 2,038 2,635 2,955 3,808
Adjusted FFO 3,300 2,926 4,129 3,484
 
Net income (loss) per diluted share attributable to the Company

$

(0.02

)

$ 0.03

$

(0.12

)

$

(0.06

)

FFO per diluted share and unit 0.16 0.20 0.23 0.30
Adjusted FFO per diluted share and unit 0.25 0.23 0.32 0.27
 

(*) Earnings before interest, taxes, depreciation and amortization (“EBITDA”), adjusted EBITDA, hotel EBITDA, funds from operations (“FFO”), adjusted FFO, FFO per share and adjusted FFO per share are non-GAAP financial measures. See further discussion of these non-GAAP measures, including definitions related thereto, and reconciliations to net income (loss) later in this press release.

HIGHLIGHTS:

  • RevPAR. Room revenue per available room (“RevPAR”) for our wholly-owned properties increased 8.1 percent over the second quarter 2010 to $84.19 as a result of a 1.0 percent increase in occupancy and a 7.0 percent increase in average daily rate (“ADR”).
  • Hotel EBITDA. The Company generated hotel EBITDA of approximately $6.6 million during the second quarter 2011, an increase of 9.2 percent over the second quarter 2010. Hotel EBITDA margin increased 40 basis points to 28.8 percent.
  • Adjusted EBITDA. The Company generated adjusted EBITDA of approximately $6.1 million during the second quarter 2011, an increase of 12.9 percent over the second quarter 2010.
  • Adjusted FFO. The Company generated adjusted FFO of approximately $3.3 million during the second quarter 2011, an increase of approximately $0.4 million or 12.8 percent over the second quarter 2010.
  • Capital Expenditures. So far this fiscal year, the Company invested approximately $3.2 million of capital throughout its portfolio, including approximately $1.4 million at the Holiday Inn Brownstone hotel property in anticipation of its conversion to the Doubletree Brownstone Raleigh in the fourth quarter 2011.
  • Common Dividends. As previously reported, on July 18, 2011, the Company announced a reinstatement of its common dividend and declared a quarterly dividend of $0.02 per share on its common shares, payable on October 11, 2011 to stockholders of record as of September 15, 2011.

Andrew M. Sims, Chairman and CEO of MHI Hospitality Corporation, commented, “MHI Hospitality Corporation experienced a strong second quarter. Operating results were solid with above market year over year increases in RevPAR and Hotel EBITDA. The Company’s Hotel EBITDA margin improved for the sixth consecutive quarter on a year over year basis. The Company restructured its balance sheet via the issuance of preferred stock, a three year extension and significant pay-down on its line of credit and loan maturity extensions on its Hampton and Jacksonville assets, coupled with an increase in the Company’s cash and liquidity positions. All and all, the second quarter 2011 was one of the Company’s most productive quarters in quite some time.”

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