EX-99.2 3 dex992.htm PROFORMA FINANCIALS Proforma Financials

EAGLE HOSPITALITY PROPERTIES TRUST, INC.

Pro Forma Consolidated Balance Sheet

As of December 31, 2004

(Unaudited, $ in thousands except per share data)

 

The accompanying unaudited Pro Forma Consolidated Balance Sheet as of December 31, 2004 is presented as if the acquisition of the Embassy Suites Phoenix-Scottsdale occurred on January 1, 2004.

 

This pro forma consolidated statement should be read in conjunction with the historical financial statements and notes thereto. In management’s opinion, all adjustments necessary to reflect the effects of the acquisition of the Embassy Suites Phoenix-Scottsdale have been made.

 

The following unaudited Pro Forma Consolidated Balance Sheet is not necessarily indicative of what actual financial position of the Company would have been assuming such transaction had been completed as of January 1, 2004, nor is it indicative of future financial positions of the Company.

 

EAGLE HOSPITALITY PROPERTIES TRUST, INC.

Pro Forma Consolidated Balance Sheet

As of December 31, 2004

(Unaudited, $ in thousands except per share data)

 

    

A)

Company

    

B)

Embassy

Phoenix

Acquisition

    

C)

Acquisition

Adjustments

     Pro Forma
  
ASSETS                                 

Cash and cash equivalents

    $ 15,661     $ 262     $ (9,411 )   $ 6,512  

Restricted cash - reserves

      10,240       501               10,741  

Accounts receivable, net

      2,437       325               2,762  

Inventories

      454       37               491  

Deferred franchise fees and intangibles, net

      505       3       205       713  

Prepaid expenses and other assets

      2,848       35               2,883  

Investment in hotel properties, net

      220,239       26,198       5,188       251,625  
    
 
 
 

Total assets

    $ 252,384     $ 27,361     $ (4,018 )   $ 275,727  
    
 
 
 
LIABILITIES AND OWNER’S EQUITY                                 

Mortgage notes payable

    $ 107,316     $ 19,861     $ 2,239     $ 129,416  

Other long term debt

      58       —                 58  

Related party debt

      23,391       —                 23,391  

Capital lease obligations

      30       13               43  

Accounts payable

      1,564       368               1,932  

Due to affiliates

      1,088       —                 1,088  

Accrued expenses

      4,269       917               5,186  

Advance deposits

      476       108               584  
    
 
 
 

Total liabilities

      138,192       21,267       2,239       161,698  

Minority Interest

      17,035               85       17,120  

Preferred stock, $0.01 par value, 10,000,000 shares authorized, none issued or outstanding

      —         —                 —    

Common stock, $0.01 par value, 100,000,000 shares authorized 17,358,573 shares issued and outstanding

      174       1       (1 )     174  

Additional paid-in capital

      100,487       7,235       (7,235 )     100,487  

Accumulated other comprehensive income

      22                       22  

Deferred compensation

      (3,623 )                     (3,623 )

Retained earnings(deficit)

      97       (1,142 )     894       (151 )
    
 
 
 

Total owners’ equity

      97,157       6,094       (6,342 )     96,909  
    
 
 
 

Total liabilities and owners’ equity

    $ 252,384     $ 27,361     $ (4,018 )   $ 275,727  
    
 
 
 

 

A) Consolidated Balance Sheet of the Company as of December 31, 2004

 

B) Audited Embassy Suites-Phoenix-Scottsdale Balance Sheet as of December 31, 2004

 

C) Reflects net cash used in the acquisition, adjustments for the net deferred franchise fees of 100, the net deferred loan fees of 108, the Company’s increased depreciable basis of 6,625 less the pro forma depreciation of 1,437, the increased mortgage of 2,239, adjustment of 85 to reflect the change in minority interest due to the pro forma Consolidated income, and to reflec the change in the capital structure

 

The Company’s investment in hotel properties for the Embassy Suites Phoenix-Scottsdale was allocated in the following manner for this pro forma as of December 31, 2004:

 

Land

    2,154

Building

    27,777

FF&E

    2,892
    

Investment in hotel properties, gross

    32,823

Less depreciation

    1,437
    

Investment in hotel properties, net

    31,386
    

 

EAGLE HOSPITALITY PROPERTIES TRUST, INC.

Pro Forma Consolidated Statement of Operations

For the Year Ended December 31, 2004

(Unaudited, $ in thousands except per share data)

 

The accompanying unaudited Pro Forma Consolidated Statement of Operations for the year ended December 31, 2004 are presented as if the acquisition of the Embassy Suites Phoenix-Scottsdale occurred on January 1, 2004.

 

These pro forma consolidated statements should be read in conjunction with the historical financial statements and notes thereto. In management’s opinion, all adjustments necessary to reflect the effects of the acquisition of the Embassy Suites Phoenix-Scottsdale have been made.

 

The following unaudited Pro Forma Consolidated Statements of Operations are not necessarily indicative of what actual results of the Company would have been assuming such transaction had been completed as of January 1, 2004, nor are they indicative of the results of operations for future periods.

 

EAGLE HOSPITALITY PROPERTIES TRUST, INC.

Pro Forma Consolidated Statement of Operations

For the Year Ended December 31, 2004

(Unaudited, $ in thousands except per share data)

 

           Pro Forma Adjustments
  
    

A)

Company &

Predecessor

    

B)

Embassy

Phoenix

Acquisition

    

C)

Acquisition

Adjustments

     Pro
Forma
  

Total revenues

    $ 82,298     $ 10,413             $ 92,711  

Corporate expense

      3,082       —                 3,082  

Hotel expenses

      68,352       9,638       121       78,111  
    
 
 
 

Operating income(loss)

      10,864       775       (121 )     11,518  

Interest income

      157       8               165  

Interest expense

      8,147       1,419       (424 )     9,142  

Other income, net

      —                         —    
    
 
 
 

Income(loss) before minority interest and provision for income taxes

      2,874       (636 )     303       2,541  

Provision for income taxes

      —         —         —         —    

Minority interest

      (729 )             85       (644 )
    
 
 
 

Net income(loss)

    $ 2,145     $ (636 )   $ 388     $ 1,897  
    
 
 
 

Basic income per share

    $ 0.12                     $ 0.11  
    
                 

Diluted income per share

    $ 0.09                     $ 0.08  
    
                 

Weighted average basic shares outstanding

      17,359                       17,359  
    
                 

Weighted average diluted shares outstanding

      23,352                       23,352  
    
                 

 

A) Pro Forma Combined Statement of Operations for the Company and Predecessor for the period ending December 31, 2004

 

B) Audited Embassy Suites-Phoenix-Scottsdale statement of operations for the period ending December 31, 2004

 

C) Adjustment of 62 to reflect the Company’s additional depreciation basis in the assets, increased expense of 54 for the amortization of the Company’s loan fees, increased expense of 6 for the amortization of franchise fees and reduction in interest expense of 362 to adjust for the Company’s lower loan amount and borrowing costs