Summit Hotel Properties, Inc. (NYSE: INN) (the “Company”) today announced results for the third quarter ended September 30, 2012. The Company’s results include the following:
Third Quarter Highlights
- Pro forma RevPAR: Pro forma RevPAR for the quarter ended September 30, 2012, increased 11.6 percent to $72.24 as a result of a 5.6 percent increase in average daily rate (“ADR”) to $97.72 and a 5.7 percent increase in occupancy to 73.9 percent.
- Pro forma Hotel EBITDA: Pro forma Hotel EBITDA was $17.4 million for the third quarter, an increase of 20.9 percent over third quarter 2011.
- Pro forma Hotel EBITDA Margin: Pro forma Hotel EBITDA Margin for the third quarter was 33.9 percent, an improvement of 261 basis points over the comparable period of 2011. Hotel EBITDA Margin is defined as Hotel EBITDA as a percentage of total revenue.
- Adjusted EBITDA: Adjusted EBITDA was $15.2 million, an increase of 25.8 percent as compared to third quarter 2011.
- Adjusted FFO: Adjusted FFO for the third quarter 2012 was $9.7 million or $0.26 per diluted share/unit. Included in AFFO is $0.3 million of income tax expense. The Company anticipates a tax benefit in the fourth quarter and for the full year. Therefore, after adjusting for the tax expense, the Company views its third quarter AFFO results as $0.27 per diluted share/unit.
- Acquisition: The Company acquired a 96 room Residence Inn by Marriott, located in Dallas (Arlington), TX for a purchase price of $15.5 million on July 2, 2012.
- Dividends: The Company declared third quarter 2012 dividends of $0.1125 per common share on October 31, 2012, representing an annualized yield of approximately 5.4 percent based on the closing price of the Company’s common stock on the NYSE on November 6, 2012, and $0.5781 per share on the Company’s 9.25% Series A Cumulative Redeemable Preferred Stock.
|Third Quarter and Year-to-Date Results|
|($ in thousands, except per share/unit data)|
|Adjusted EBITDA (1)||$||15,246||$||12,120||$||40,691||$||32,125|
|Adjusted FFO (1)||$||9,743||$||8,666||$||25,999||$||22,591|
|FFO per diluted share/unit (1)||$||0.24||$||0.23||$||0.60||$||0.47|
|Adjusted FFO per diluted share/unit (1)||$||0.26||$||0.23||$||0.70||$||0.49|
|Pro Forma (2)|
|Hotel EBITDA margin||33.9%||31.3%||32.9%||31.0%|
|Hotel EBITDA margin growth||261 bps||199 bps|
|(1)||See tables later in this press release for a reconciliation to net income (loss) of earnings before interest, taxes, depreciation and amortization (“EBITDA”), adjusted EBITDA, funds from operations (“FFO”), FFO per diluted share/unit, adjusted FFO and adjusted FFO per diluted share/unit. EBITDA, adjusted EBITDA, FFO, FFO per diluted share/unit, adjusted FFO and adjusted FFO per diluted share/unit, as well as hotel EBITDA, are non-GAAP financial measures. See further discussions of these non-GAAP measures and reconciliations to net income (loss) later in this press release.|
|(2)||For purposes of this press release, pro forma information includes operating results for the Company’s 73 hotels owned as of September 30, 2012, as if such hotels had been owned by the Company since January 1, 2011. As a result, these pro forma operating measures include operating results for certain hotels for periods prior to the Company’s ownership.|
Capital MarketsOn October 3, 2012, the Company closed on its initial follow on public offering of 12,000,000 shares of its common stock, par value $0.01 per share, an increase of 20.0 percent over the previously announced offering size of 10,000,000 shares, at a price of $8.15 per share. The underwriters of the Company’s offering fully exercised their option to purchase an additional 1,800,000 shares. The total number of shares sold, including the option shares, was 13,800,000. Total net proceeds of approximately $107.0 million were realized after deducting the underwriting discount and other estimated offering expenses.
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