EX-99.1
2
march1506-exh.txt
REVISED FINANCIAL INFORMATION

                                                                    Exhibit 99.1
                                EQUITY INNS, INC.
                      CONDENSED CONSOLIDATED BALANCE SHEETS
                        (in thousands, except share data)

December 31, December 31, 2005 2004 ------------ ------------ (unaudited) ASSETS Investment in hotel properties, net $ 978,233 $852,755 Assets held for sale - 3,849 Cash and cash equivalents 6,556 6,991 Accounts receivable, net of doubtful accounts of $175 and $225, respectively 8,960 7,543 Interest rate swaps 877 - Note receivable 1,688 - Deferred expenses, net 11,927 8,679 Deposits and other assets, net 17,595 13,437 ---------- -------- Total Assets $1,025,836 $893,254 ========== ======== LIABILITIES AND SHAREHOLDERS' EQUITY Long-term debt $ 557,475 $439,183 Accounts payable and accrued expenses 39,204 30,366 Distributions payable 10,674 8,090 Interest rate swaps - 119 Minority interests in Partnership 8,363 9,064 ---------- -------- Total Liabilities 615,716 486,822 ---------- -------- Commitments and Contingencies Shareholders' Equity: Preferred stock (Series B), 8.75%, $.01 par value, 10,000,000 shares authorized, 3,450,000 shares issued and outstanding 83,524 83,524 Common stock, $.01 par value, 100,000,000 shares authorized, 54,749,308 and 51,872,460 shares issued and outstanding 547 519 Additional paid-in capital 573,473 542,397 Treasury stock, at cost, 747,600 shares (5,173) (5,173) Unearned directors' and officers' compensation (2,815) (2,211) Distributions in excess of net earnings (240,313) (212,505) Unrealized gain (loss) on interest rate swaps 877 (119) ---------- -------- Total Shareholders' Equity 410,120 406,432 ---------- -------- Total Liabilities and Shareholders' Equity $1,025,836 $893,254 ========== ========
EQUITY INNS, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share data) (unaudited)
For the Three Months Ended For the Twelve Months Ended December 31, December 31, ---------------------------- ------------------------------ 2005 2004 2005 2004 ------- ------- -------- ------- Revenue: Room revenue $81,544 $62,194 $321,519 $241,477 Other hotel revenue 3,529 3,314 13,845 12,187 ------- ------- -------- -------- Total revenue 85,073 65,508 335,364 253,664 Operating expenses: Direct hotel expenses 50,237 37,247 187,795 143,078 Other hotel expenses 2,853 2,477 10,709 9,012 Depreciation 12,931 11,343 48,163 40,335 Property taxes, rental expense and insurance 5,045 4,855 21,117 17,766 General and administrative expenses: Non-cash stock-based compensation 675 391 1,728 845 Other general and administrative expenses 2,157 2,026 8,023 7,403 Loss on impairment of hotels 4,250 - 6,400 - ------- ------- -------- -------- Total operating expenses 78,148 58,339 283,935 218,439 ------- ------- -------- -------- Operating income 6,925 7,169 51,429 35,225 Interest expense, net 10,024 8,174 36,064 29,231 ------- ------- -------- -------- Income (loss) from continuing operations before minority interests and income taxes (3,099) (1,005) 15,365 5,994 Minority interests income (expense) 116 144 (195) 91 Deferred income tax benefit (expense) - - - - ------- ------- -------- -------- Income (loss) from continuing operations (2,983) (861) 15,170 6,085 Discontinued operations: Gain (loss) on sale of hotel properties - 368 625 47 Loss on impairment of hotels held for sale - (1,883) (1,350) (1,883) Income (loss) from operations of discontinued operations 16 (19) (47) (166) ------- ------- -------- -------- Income (loss) from discontinued operations 16 (1,534) (772) (2,002) ------- ------- -------- -------- Net income (loss) (2,967) (2,395) 14,398 4,083 Preferred stock dividends (1,887) (1,887) (7,547) (7,547) ------- ------- -------- -------- Net income (loss) applicable to common shareholders $(4,854) $(4,282) $ 6,851 $ (3,464) ======= ======= ======== ======== Net income (loss) per share data: Basic and diluted income (loss) per share: Continuing operations $ (0.09) $( 0.06) $ 0.14 $ (0.03) Discontinued operations 0.00 (0.03) (0.01) (0.05) ------- ------- -------- -------- Net income (loss) per common share $( 0.09) $( 0.09) $ 0.13 $ (0.08) ======= ======= ======== ======== Weighted average number of common shares outstanding, basic and diluted 54,008 49,724 53,523 45,800 ======= ======= ======== ========
EQUITY INNS, INC. RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED FUNDS FROM OPERATIONS AND CASH AVAILABLE FOR DISTRIBUTION (unaudited) The following is a reconciliation of net income (loss) to FFO and AFFO, both applicable to common shareholders, and cash available for distribution and illustrates the difference in these measures of operating performance (in thousands, except per share and unit data):
For the Three Months Ended For the Twelve Months Ended December 31, December 31, -------------------------- --------------------------- 2005 2004 2005 2004 -------- -------- -------- -------- Net income (loss) applicable to common shareholders $(4,854) $(4,282) $ 6,851 $(3,464) Add (subtract): (Gain) loss on sale of hotel properties - (368) (625) (47) Minority interests (income) expense (116) (144) 195 (91) Depreciation 12,931 11,343 48,163 40,335 Depreciation from discontinued operations 1 233 250 835 ------- ------- ------- ------- Funds From Operations (FFO) 7,962 6,782 54,834 37,568 Loss on impairment of hotels 4,250 1,883 7,750 1,883 Fees incurred on indefinitely postponed unsecured offering - - 245 - Prepayment penalty on extinguishment of debt - 300 - 300 ------- ------- ------- ------- Adjusted Funds From Operations (AFFO) 12,212 8,965 62,829 39,751 Add: Amortization of debt issuance costs 536 738 2,224 1,973 Amortization of deferred expenses and stock-based compensation 730 432 1,869 1,027 Amortization from discontinued operations - 8 10 31 Capital reserves (3,262) (2,489) (12,861) (9,658) ------- ------- ------- ------- Cash Available for Distribution $10,216 $ 7,654 $54,071 $33,124 ======= ======= ======= ======= Weighted average number of diluted common shares and Partnership units outstanding 55,395 51,003 54,931 47,005 ======== ======== ======= ======= FFO per Share and Unit $ 0.14 $ 0.13 $ 1.00 $ 0.80 ======== ======== ======= ======= AFFO per Share and Unit $ 0.22 $ 0.18 $ 1.14 $ 0.85 ======== ======== ======= ======= Cash Available for Distribution per Share and Unit $ 0.18 $ 0.15 $ 0.98 $ 0.70 ======== ======== ======= =======
EQUITY INNS, INC. RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED EBITDA (unaudited) The following is a reconciliation of net income (loss) applicable to common shareholders to Adjusted EBITDA and illustrates the difference in these measures of operating performance (in thousands):
For the Three Months Ended For the Twelve Months Ended December 31, December 31, -------------------------- ----------------------------- 2005 2004 2005 2004 ------- ------- -------- ------- Net income (loss) applicable to common shareholders $(4,854) $(4,282) $ 6,851 $(3,464) Add (subtract): Preferred stock dividends 1,887 1,887 7,547 7,547 (Income) loss from discontinued operations (16) 1,534 772 2,002 Minority interests (income) expense (116) (144) 195 (91) Interest expense, net 10,024 8,174 36,064 29,231 Loss on impairment of hotels 4,250 - 6,400 - Depreciation 12,931 11,343 48,163 40,335 Amortization of deferred expenses and stock-based compensation 730 440 1,879 1,058 ------- ------- -------- ------- Adjusted EBITDA $24,836 $18,952 $107,871 $76,618 ======= ======= ======== =======
Non-GAAP Financial Measures Included in this document are certain "non-GAAP financial measures," which are measures of the Company's historical or future financial performance that are different from measures calculated and presented in accordance with generally accepted accounting principles, or GAAP, within the meaning of applicable SEC rules. These include: (i) Funds From Operations, (ii) Adjusted Funds From Operations, (iii) Adjusted EBITDA, (iv) Cash Available for Distribution (CAD), and (v) CAD Payout Ratio. The following discussion defines these terms, which the Company believes can be useful measures of its performance. Funds from Operations Funds From Operations The National Association of Real Estate Investment Trusts, or NAREIT, defines funds from operations, or FFO, as net income (loss) applicable to common shareholders, excluding gains (or losses) from sales of real estate, the cumulative effect of changes in accounting principles, real estate-related depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures. FFO does not include the cost of capital improvements or any related capitalized interest. Equity Inns uses FFO per share as a measure of performance to adjust for certain non-cash expenses such as depreciation and amortization because historical cost accounting for real estate assets implicitly assumes that the value of real estate assets diminishes predictably over time. Because real estate values have historically risen or fallen with market conditions, many industry investors have considered presentation of operating results for real estate companies that use historical cost accounting to be less informative. NAREIT adopted the definition of FFO in order to promote an industry-wide standard measure of REIT operating performance. Accordingly, as a member of NAREIT, Equity Inns adopted FFO as a measure to evaluate performance and facilitate comparisons between the Company and other REITs, although FFO and FFO per diluted share may not be comparable to those measures or similarly titled measures as reported by other companies. Additionally, FFO is used by management in the annual budget process. Adjusted Funds From Operations Equity Inns further adjusts FFO for losses on impairment of hotels, prepayment penalties on extinguishment of debt and other non-cash or unusual items. We refer to this as adjusted funds from operations, or AFFO. The Company's computation of AFFO and AFFO per diluted share is not comparable to the NAREIT definition of FFO or to similar measures reported by other REITs, but the Company believes it is an appropriate measure for this Company. The Company uses AFFO because it believes that this measure provides investors a useful indicator of the operating performance of the Company's hotels by adjusting for the effects of certain non-cash or non-recurring items arising from the Company's financing activities, impairment charges on hotels held for sale and other areas. In addition to being used by management in the annual budget process, AFFO per share is also used by the Compensation Committee of the Board of Directors as one of the criteria for performance-based compensation. Adjusted EBITDA Earnings before Interest Expense, Income Taxes, Depreciation and Amortization, or EBITDA, is a commonly used measure of performance in many industries, which the Company believes provides useful information to investors regarding its results of operations. EBITDA helps Equity Inns and its investors evaluate the ongoing operating performance of its properties and facilitates comparisons with other lodging REITs, hotel owners who are not REITs, and other capital-intensive companies. The Company uses EBITDA to provide a baseline when evaluating hotel results. The Company also uses EBITDA as one measure in determining the value of acquisitions and dispositions and, like FFO and AFFO, it is also used by management in the annual budget process. The Company further adjusts EBITDA to exclude preferred stock dividends, income or losses from discontinued operations, minority interests and losses on impairment of hotels because it believes that including such items in EBITDA is not consistent with reflecting the ongoing operating performance of the remaining assets. The Company has historically adjusted EBITDA when evaluating its performance because management believes that the exclusion of certain non-cash and non-recurring items described above assists the Company in measuring the performance of its hotels and reflects the ongoing value of the Company as a whole. Therefore, the Company modifies EBITDA and refers to this measure as Adjusted EBITDA. Cash available for distribution (CAD) and CAD Payout Ratio Cash available for distribution (CAD) is defined as AFFO, adjusted for certain non-cash amortization and an allowance for recurring capital expenditures equal to four percent of hotel room revenue from continuing operations. The Company computes the CAD Payout Ratio by dividing common dividends per share and unit paid over the last twelve months by trailing twelve-month CAD per share for the same period. The Company believes the CAD Payout Ratio also helps improve equity holders' ability to understand the Company's ability to make distributions to its shareholders.

The following information was filed by W2007 Grace Acquisition I Inc (ENN) on Wednesday, March 15, 2006 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.

View differences made from one year to another to evaluate W2007 Grace Acquisition I Inc's financial trajectory

Compare SEC Filings Year-over-Year (YoY) and Quarter-over-Quarter (QoQ)
Sample 10-K Year-over-Year (YoY) Comparison

Compare this 10-K Annual Report to its predecessor by reading our highlights to see what text and tables were  removed  ,   added    and   changed   by W2007 Grace Acquisition I Inc.

Continue

Never Miss A New SEC Filing Again


Real-Time SEC Filing Notifications
Screenshot taken from Gmail for a new 10-K Annual Report
Last10K.com Member Feature

Receive an e-mail as soon as a company files an Annual Report, Quarterly Report or has new 8-K corporate news.

Continue

We Highlighted This SEC Filing For You


SEC Filing Sentiment Analysis - Bullish, Bearish, Neutral
Screenshot taken from Wynn's 2018 10-K Annual Report
Last10K.com Member Feature

Read positive and negative remarks made by management in their entirety without having to find them in a 10-K/Q.

Continue

Widen Your SEC Filing Reading Experience


Increased Reading Area for SEC Filings
Screenshot taken from Adobe Inc.'s 10-Q Quarterly Report
Last10K.com Member Feature

Remove data columns and navigations in order to see much more filing content and tables in one view

Continue

Uncover Actionable Information Inside SEC Filings


SEC Filing Disclosures
Screenshot taken from Lumber Liquidators 10-K Annual Report
Last10K.com Member Feature

Read both hidden opportunities and early signs of potential problems without having to find them in a 10-K/Q

Continue

Adobe PDF, Microsoft Word and Excel Downloads


Download Annual and Quarterly Reports as PDF, Word and Excel Documents
Screenshots of actual 10-K and 10-Q SEC Filings in PDF, Word and Excel formats
Last10K.com Member Feature

Export Annual and Quarterly Reports to Adobe PDF, Microsoft Word and Excel for offline viewing, annotations and analysis

Continue

FREE Financial Statements


Download Annual and Quarterly Reports as PDF, Word and Excel Documents
Screenshot of actual balance sheet from company 10-K Annual Report
Last10K.com Member Feature

Get one-click access to balance sheets, income, operations and cash flow statements without having to find them in Annual and Quarterly Reports

Continue for FREE

Intrinsic Value Calculator


Intrinsic Value Calculator
Screenshot of intrinsic value for AT&T (2019)
Last10K.com Member Feature

Our Intrinsic Value calculator estimates what an entire company is worth using up to 10 years of financial ratios to determine if a stock is overvalued or not

Continue

Financial Stability Report


Financial Stability Report
Screenshot of financial stability report for Coco-Cola (2019)
Last10K.com Member Feature

Our Financial Stability reports uses up to 10 years of financial ratios to determine the health of a company's EPS, Dividends, Book Value, Return on Equity, Current Ratio and Debt-to-Equity

Continue

Get a Better Picture of a Company's Performance


Financial Ratios
Available Financial Ratios
Last10K.com Member Feature

See how over 70 Growth, Profitability and Financial Ratios perform over 10 Years

Continue

Log in with your credentials

or    

Forgot your details?

Create Account