SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
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For the Quarterly Period Ended September 30, 2003 |
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OR |
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
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For the Transition Period from to |
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Commission File Number 001-13125 |
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EXTENDED STAY AMERICA, INC.
(Exact name of Registrant as specified in its charter)
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Delaware |
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36-3996573 |
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(State or other jurisdiction
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(I.R.S. Employer |
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100 DUNBAR STREET, SPARTANBURG, SC |
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29306 |
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(Address of Principal Executive Offices) |
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(Zip Code) |
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Registrant’s telephone number, including area code: (864) 573-1600 |
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Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Yes ý No o
Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act).
Yes ý No o
At November 6, 2003, the registrant had issued and outstanding an aggregate of 97,095,432 shares of Common Stock.
PART I
FINANCIAL INFORMATION
Item 1. Financial Statements
EXTENDED STAY AMERICA, INC.
Condensed Consolidated Balance Sheets (Unaudited)
(In thousands, except share data)
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September
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December 31, |
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ASSETS |
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Current assets: |
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Cash and cash equivalents |
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$ |
28,863 |
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$ |
6,583 |
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Accounts receivable |
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7,010 |
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5,996 |
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Prepaid income taxes |
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10,181 |
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7,295 |
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Prepaid expenses |
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7,117 |
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5,774 |
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Deferred income taxes |
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6,301 |
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18,920 |
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Total current assets |
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59,472 |
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44,568 |
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Property and equipment, net |
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2,408,642 |
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2,372,939 |
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Deferred loan costs, net |
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21,269 |
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22,336 |
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Deferred income taxes |
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25,114 |
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18,000 |
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Other assets |
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962 |
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877 |
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$ |
2,515,459 |
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$ |
2,458,720 |
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LIABILITIES AND STOCKHOLDERS’ EQUITY |
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Current liabilities: |
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Accounts payable |
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$ |
18,965 |
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$ |
22,793 |
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Accrued retainage |
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7,534 |
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6,971 |
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Accrued property taxes |
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16,310 |
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12,947 |
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Accrued salaries and related expenses |
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6,899 |
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4,834 |
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Accrued interest |
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9,560 |
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6,724 |
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Other accrued expenses |
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20,476 |
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18,977 |
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Current portion of long-term debt |
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28,927 |
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21,695 |
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Total current liabilities |
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108,671 |
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94,941 |
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Deferred income taxes |
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158,910 |
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147,046 |
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Long-term debt |
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1,107,460 |
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1,143,565 |
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Commitments and Contingencies |
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Stockholders’ equity: |
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Preferred stock, $.01 par value, 10,000,000 shares authorized, no shares issued and outstanding |
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Common stock, $.01 par value, 500,000,000 shares authorized, 96,761,328 and 93,923,169 shares issued and outstanding, respectively |
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968 |
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939 |
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Additional paid-in capital |
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832,287 |
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801,757 |
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Retained earnings |
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307,163 |
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270,472 |
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Total stockholders’ equity |
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1,140,418 |
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1,073,168 |
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$ |
2,515,459 |
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$ |
2,458,720 |
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(1) Derived from audited financial statements
See notes to the unaudited condensed consolidated financial statements
1
EXTENDED STAY AMERICA, INC.
Condensed Consolidated Statements of Income (Unaudited)
(In thousands, except per share data)
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Three Months Ended |
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Nine Months Ended |
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September 30, |
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September 30, |
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September 30, |
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September
30, |
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Revenue |
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$ |
152,960 |
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$ |
153,463 |
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$ |
419,417 |
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$ |
421,058 |
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Property operating expenses |
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72,107 |
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66,485 |
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203,228 |
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189,902 |
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Corporate operating and property management expenses |
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13,287 |
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12,170 |
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37,628 |
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36,355 |
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Depreciation and amortization |
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20,226 |
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19,858 |
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60,225 |
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58,781 |
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Total costs and expenses |
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105,620 |
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98,513 |
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301,081 |
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285,038 |
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Income from operations before interest and income taxes |
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47,340 |
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54,950 |
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118,336 |
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136,020 |
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Interest expense, net |
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20,097 |
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20,245 |
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58,186 |
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59,413 |
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Income before income taxes |
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27,243 |
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34,705 |
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60,150 |
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76,607 |
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Provision for income taxes |
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10,625 |
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13,535 |
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23,459 |
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26,853 |
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Net income |
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$ |
16,618 |
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$ |
21,170 |
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$ |
36,691 |
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$ |
49,754 |
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Net income per common share: |
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Basic |
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$ |
0.17 |
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