As filed with the Securities and Exchange Commission on July 29, 1998
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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Act of 1933
Date of Report (Date of earliest event reported) July 29, 1998
________________
SUBURBAN LODGES OF AMERICA, INC.
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(Exact name of Registrant as specified in its charter)
Georgia 0-28108 58-1781184
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(State or other (Commission File (I.R.S.
jurisdiction of Number) Employer
incorporation) Identification
Number)
1000 Parkwood Circle
Suite 850
Atlanta, Georgia 30339
(770) 951-9511
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(Address, including zip code, and telephone number,
including area code, of registrant's principal
executive offices)
Not Applicable
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(Former name or former address, if changed since last report)
<PAGE>
ITEM 5. OTHER EVENTS.
On July 29, 1998, the Registrant issued the press
release attached hereto as Exhibit 99.1.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.
The following exhibit is filed herewith:
EXHIBIT
NUMBER DESCRIPTION OF EXHIBIT
- ------- ----------------------
99.1 Press Release dated July 29, 1998.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act
of 1934, the registrant has duly caused this report to be signed
on its behalf by the undersigned hereunto duly authorized.
By: Terry J. Feldman
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Name: Terry J. Feldman
Title: Vice President and
Chief Financial Officer
Date: July 29, 1998
Wednesday July 29, 9:40 am Eastern Time
Company Press Release
SUBURBAN LODGES REPORTS CONTINUED RECORD REVENUES AND
EARNINGS
ATLANTA--(BUSINESS WIRE)--July 29, 1998--Suburban Lodges of
America, Inc. (Nasdaq: SLAM - news) today announced
continued record earnings for the second quarter ended June
30, 1998.
Net income for the second quarter increased by 79% to $3.2
million, or $0.21 per share, compared to net income of $1.8
million or $0.15 per share for the second quarter of 1997.
Quarterly revenue increased 100% to $11.2 million from $ 5.6
million in the second quarter of 1997. Earnings before
interest, taxes, depreciation and amortization (EBITDA) were
$5.4 million versus $2.7 million in the second quarter of
last year.
Net income for the six-month period increased to $5.4
million or $0.35 per share, versus $3.0 million, or $0.25
per share, for the first six months of 1997. EBITDA more
than doubled to $9.1 million compared to $4.4 million in the
six-month period last year. Total revenues for the six
months increased significantly to $20.3 million compared to
$9.6 million for the first six months of 1997.
For the second quarter, Average Weekly Rates (AWR) for
company-owned mature hotels (hotels open one year or more)
increased from $150 to $170 with occupancies at 90.9% versus
93.0% in 1997. For all company-owned hotels, AWR was $172
versus $155 for the second quarter of 1997, with occupancies
of 87.9% for second quarter 1998 versus 90.2% in the second
quarter of 1997. The lower occupancy reflects the opening of
21 additional company-owned Suburban Lodge hotels since June
30, 1997 out of a total of 42 company-owned hotels open as
of June 30,1998. Weekly revenue per available room (RevPAR)
for the second quarter of 1998 was $155 for company-owned
mature hotels versus $140 in 1997.
David E. Krischer, Chairman and CEO, commented: ``We are
extremely pleased with the continued strong operating
performance of the company and the high demand for the
Suburban Lodge product. These results are especially
encouraging considering the fact that we opened so many new
company-owned hotels in the last twelve months. Our
occupancy levels also continue to far exceed industry
average. We are well positioned for the further growth the
Company has planned.'' As of June 30, 1998, system wide
there were 67 operating Suburban Lodge hotels, 38 under
construction and 38 under development.
The Company also announced that it intends, subject to
market and other conditions, to raise $100 million through
the private placement of notes during the remainder of 1998.
The Company intends to use the net proceeds of the offering
to repay existing indebtedness, to develop additional
Suburban Lodge hotels and for working capital and other
general corporate purposes.
The notes have not been and will not be registered under the
Securities Act of 1933, as amended, or any state securities
laws, and may not be offered or sold in the United States
absent registration or an applicable exemption from the
registration requirements. This news release shall not
constitute an offer to sell or the solicitation of an offer
to purchase the notes.
The matters discussed in the foregoing paragraphs of this
news release include forward looking statements that involve
risks and uncertainties that could cause results to differ
from anticipated results, including, but not limited to,
economic conditions, development efficiencies, weather
delays, zoning delays, the Company's financial condition and
other risks indicated in the Company's filings with the
Securities and Exchange Commission.
Suburban Lodges of America, Inc, develops, manages and
franchises Suburban Lodge economy extended stay hotels.
Suburban Lodge properties are designed to appeal to value
conscious guests who are in need of extended stay lodging at
affordable prices. <PAGE>
SUBURBAN LODGES OF AMERICA, INC.
CONSOLIDATED STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
(Unaudited) (Unaudited)
Three Months Ended Six Months Ended
Jun 30, 1997 Jun 30, 1998 Jun 30, 1997 Jun 30, 1998
<S> <C> <C> <C> <C>
REVENUE:
Room revenue $ 4,986,772 $ 10,533,980 $ 8,436,339 $ 18,767,569
Other hote 442,913 321,403 680,841 749,998
revenue
Franchise and 215,984 389,640 451,153 772,926
other revenue ---------- ----------- ---------- ----------
Total revenue 5,645,669 11,245,023 9,568,333 20,290,493
---------- ----------- ---------- ----------
COSTS AND
EXPENSES:
Hotel 2,462,319 5,001,559 4,330,061 9,570,436
operating
expenses
Corporate 452,159 891,434 855,599 1,649,018
operating
expenses
Depreciation 637,525 1,151,648 1,103,525 2,234,642
and ---------- ----------- ---------- ----------
amortization
Total costs 3,552,003 7,044,641 6,289,185 13,454,096
and expenses ---------- ----------- ---------- -----------
OPERATING 2,093,666 4,200,382 3,279,148 6,836,397
INCOME
INTEREST 552,024 756,656 1,321,996 1,591,624
INCOME
INTEREST (11,528) (85,216) (12,775) (147,612)
EXPENSE
OTHER INCOME 63,441 63,441
---------- ----------- ---------- -----------
2,634,162 4,935,263 4,588,369 8,343,850
INCOME TAX (858,098) (1,762,196) (1,557,626) (2,914,600)
EXPENSE ---------- ----------- ---------- -----------
NET INCOME $ 1,776,064 $ 3,173,067 $ 3,030,743 $ 5,429,250
========== =========== ========== ===========
Earnings per
common share-
basic $ 0.15 $ 0.21 $ 0.25 $ 0.35
========== =========== ========== ===========
Weighted
average shares
outstanding 12,128,502 15,429,842 11,930,781 15,429,535
========== =========== ========== ===========
</TABLE>
<PAGE>
SUBURBAN LODGES OF AMERICAN, INC.
CONSOLIDATED BALANACE SHEETS
December 31, June 30,
1997 1998
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $62,650,048 $40,047,713
Restricted cash 11,000,000 --
Accounts receivable, trade - net of 193,322 586,320
allowance for doubtful accounts
Prepaid expenses and other assets 3,257,483 4,182,559
Prepaid income taxes 835,254 835,254
Current deferred tax asset 218,053 218,053
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Total current assets 78,154,160 45,869,899
----------- -----------
OTHER NONCURRENT ASSETS 3,554,748 5,346,259
INVESTMENT IN FACILITIES- At cost:
Land 19,894,011 25,383,990
Buildings and improvements 108,012,604 133,805,052
Equipment 5,857,306 7,709,534
Furniture and fixtures 6,272,884 7,655,722
Construction-in-progress 26,491,293 43,940,877
----------- -----------
166,528,098 218,495,175
Less accumulated depreciation (5,382,957) (7,616,953)
----------- -----------
Net investment in facilities 161,145,141 210,878,222
----------- -----------
$ 242,854,049 $ 262,094,380
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LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Construction accounts payable 4,610,971 6,246,313
Accounts payable, trade 1,613,900 1,134,089
Accrued expenses and other
liabilities 1,741,929 2,845,338
Income taxes payable 1,666,758
Other current liabilities 649,955 505,338
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Total current liabilities 8,616,755 12,397,836
LONG-TERM DEBT 25,000,000 35,000,000
NONCURRENT DEFERRED TAX
LIABILITIES 99,133 99,133
OTHER NONCURRENT
LIABILITIES 85,936 85,936
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Total liabilities 33,801,824 47,582,905
<PAGE>
SHAREHOLDERS' EQUITY:
Common stock 154,292 154,310
Additional paid-in capital 200,159,769 200,189,751
Retained earnings 8,738,164 14,167,414
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Total shareholders' equity 209,052,225 214,511,475
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$242,854,049 $262,094,380
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Contact:
Suburban Lodges of America, Inc.
Terry Feldman
Chief Financial Officer
(770) 951-9511
