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PROSPECTUS SUPPLEMENT Filed pursuant to Rule 424(b)(3)
To Prospectus Dated November 14, 1997 Registration No. 333-39187
1,500,000 Shares
BRIDGESTREET ACCOMMODATIONS, INC.
Common Stock
The following are excerpts from a press release issued by BridgeStreet
Accommodations, Inc. (the "Company") on February 25, 1998, including the
Company's results of operations for the year and three months ended December 31,
1997, as compared with the results for the prior comparable periods.
BridgeStreet Accommodations, Inc. today announced net income of
$231,000 or $0.03 per share for the fourth quarter ended December 31, 1997.
The fourth quarter net income was up 26% over the comparable prior year
period's results of $184,000, revenues increased 314% from $3.3 million to
$13.8 million.
For the year ended December 31, 1997, the company's net income
adjusted for a non-recurring officers' stock compensation charge was
$1,664,000 or $0.28 per share up 151% over the comparable prior year
period's results of $664,000, revenues increased 309% from $12.4 million
to $50.75 million.
The 1996 periods only report the net income and revenues of Temporary
Corporate Housing ("TCH"), the acquirer of the other BridgeStreet
operating subsidiaries.
Commenting on the quarter, William N. Hulett, III, President and
Chief Executive Officer of the Company stated: "We completed our IPO at
the end of September and immediately began investing the proceeds to
expand and grow the Company. We opened a new market in Houston, TX,
acquired solid operations in Dallas, TX and Phoenix, AZ adding in excess
of $10 million in annual sales. Our central reservation system came on
line facilitating cross-market referrals and sales. Operating results
reflected the typical seasonal aspect of our business; our customers
demand for lodging subsides as we contract our apartment inventory,
however, we still experience higher than optimal vacancy rates. We
continue to implement operational standards and reporting processes in all
markets to improve profitability."
Hulett went on to comment on 1998 acquisitions, "We have acquired
since year end five additional companies, four in the United States
comprising the following markets: Charlotte NC, Raleigh-Durham NC,
Research Triangle Park NC, Winston Salem NC, Greensboro NC, Austin TX,
Denver CO, Colorado Springs CO, Boulder CO and Fort Collins CO. We have
expanded internationally to London, with the acquisition of London Life
Apartments."
The date of this Prospectus Supplement is February 27, 1998.
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BRIDGESTREET ACCOMMODATIONS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except share amounts)
<TABLE>
<CAPTION>
Three Months Ended Year Ended
December 31, December 31,
------------------------ ------------------------
TCH BridgeStreet TCH BridgeStreet
1996 1997 1996 1997
-------- ------------ -------- ------------
<S> <C> <C> <C> <C>
Revenues $ 3,346 $ 13,836 $ 12,400 $ 50,750
Operating Expenses:
Cost of services 2,408 10,999 9,052 37,737
Selling, general and administrative expense 680 2,542 2,327 9,887
Officers' stock compensation expense (note 1) - - - 1,210
Goodwill amortization expense - 131 - 489
-------- ------------ -------- ------------
Total operating expenses 3,088 13,672 11,379 49,323
-------- ------------ -------- ------------
Operating income 258 164 1,021 1,427
Other income 68 266 155 398
-------- ------------ -------- ------------
Income before provision for income taxes 326 430 1,176 1,825
Provision for income taxes (note 2) 142 199 512 1,371
-------- ------------ -------- ------------
Net income $ 184 $ 231 $ 664 $ 454
======== ============ ======== ============
Basic net income per share before officers' stock
compensation expense $ 0.03 $ 0.28
=============== ===============
Dilutive net income per share before officers'
stock compensation expense $ 0.03 $ 0.28
=============== ===============
Basic net income per share $ 0.03 $ 0.08
=============== ===============
Dilutive net income per share $ 0.03 $ 0.08
=============== ===============
Weighted Average Shares Outstanding - Basic 7,620,862 5,904,484
Weighted Average Shares Outstanding - Dilutive 7,741,522 5,930,248
</TABLE>
Note 1. Officers' stock compensation expense represents a non-recurring,
non-cash compensation expense which was charged to operations, with an
offsetting credit to paid in capital, in the first quarter of 1997. The charge
represents the difference between the value of the stock issued and the amount
paid by the officers.
Note 2. The income tax provision for the year ended December 31, 1997 does not
give tax benefit for officers' stock compensation expense and goodwill expense
as these are non-deductible expenses for income tax purposes.
