HENDERSONVILLE, Tenn. | ShoLodge, Inc. (Pink Sheets: LODG - News) today announced results for its year ended December 26, 2004. Total revenues were $29.2 million in 2004, compared with $31.9 million in 2003. Construction and development revenues were $21.0 million in 2004, compared with $24.0 million in 2003; and revenues from franchising, reservation and management services were $7.9 million in 2004, compared with $7.7 million in 2003.
The net loss for 2004 was $14.3 million, or $2.86 per share, compared with net earnings of $299,000, or $0.06 per share, in 2003. The loss from continuing operations for 2004 was $11.5 million, or $2.30 per share, compared with net earnings from continuing operations of $1.9 million, or $0.37 per share in 2003.
For the fourth quarter ended December 26, 2004, total revenues were $4.3 million, compared with $9.4 million in the same period a year ago. Construction and development revenues were $2.7 million in the fourth quarter of 2004, compared with $7.7 million in the fourth quarter of 2003; and revenues from franchising, reservation and management services were $1.6 million in 2004, compared with $1.7 million in 2003.
The net loss for the fourth quarter of 2004 was $7.0 million, or $1.40 per share, compared with net earnings of $933,000, or $0.19 per share, in the fourth quarter of 2003. The loss from continuing operations for the fourth quarter of 2004 was $7.0 million, or $1.41 per share, compared with earnings from continuing operations of $1.3 million, or $0.27 per share, in 2003.
Leon Moore, chief executive officer of ShoLodge, said, "Results for fiscal 2004 were disappointing, but not unexpected. We have positioned ourselves for future improvement. We have now sold all of our hotel properties, incurring losses on many of them, and have used the proceeds to enable us to extinguish all of our public indebtedness, including the early redemption of the final $14.4 million on April 15th of this year. During 2004 and the first quarter of 2005, we have repaid a total of $49.4 million of our public debt. The reduction of interest expense will benefit future periods. Also, as we announced in January of this year, we filed with the Securities and Exchange Commission to cease reporting as a public company. This cessation of reporting responsibilities and obligations to comply with the Sarbanes-Oxley rules and regulations is now final. This action will save our Company significant general and administrative expenses in the future. Our annual and quarterly financial statements may still be accessed by logging on to our website, www.sholodge.com."
"Our strategy is to focus on franchising our GuestHouse International hotel chain that we acquired in May of 2002 and provide state-of-the-art reservation services to these hotels and to other lodging facilities," Moore continued. "In addition, we will continue to evaluate potential opportunities to offer construction and development services as they present themselves."
This press release contains forward-looking statements relating to certain matters, which reflect management's best judgment, based on factors currently known and involve risks and uncertainties. Actual results could differ materially from the anticipated results or expectations expressed in the Company's forward-looking statements. Forward-looking information provided by the Company pursuant to the safe harbor established under the Private Securities Litigation Reform Act of 1995 should be evaluated in the context of these factors which are contained in the Company's Securities and Exchange Commission (SEC) filings, including its periodic reports filed under the Securities Exchange Act of 1934, as amended. Copies of these filings are available upon request from the Company. In addition, the Company disclaims any intent or obligation to update these forward-looking statements.
SHOLODGE, INC.
Financial Highlights
(In thousands, except per share amounts)
12 Weeks Ended Year Ended
-------------------- --------------------
12/26/04 12/28/03 12/26/04 12/28/03
--------- --------- --------- ---------
Total revenues $ 4,326 $ 9,441 $ 29,201 $ 31,921
(Loss) earnings from
continuing operations $ (7,035) $ 1,335 $ (11,525) $ 1,863
Discontinued operations 36 (402) (2,802) (1,564)
--------- --------- --------- ---------
Net (loss) earnings $ (6,999) $ 933 $ (14,327) $ 299
========= ========= ========= =========
(Loss) earnings per
common share:
Basic:
From continuing
operations $ (1.41) $ 0.27 $ (2.30) $ 0.37
Discontinued
operations 0.01 (0.08) (0.56) (0.31)
--------- --------- --------- ---------
Net (loss) earnings $ (1.40) $ 0.19 $ (2.86) $ 0.06
========= ========= ========= =========
Diluted:
From continuing
operations $ (1.41) $ 0.27 $ (2.30) $ 0.37
Discontinued
operations 0.01 (0.08) (0.56) (0.31)
--------- --------- --------- ---------
Net (loss) earnings $ (1.40) $ 0.19 $ (2.86) $ 0.06
========= ========= ========= =========
Average shares
outstanding:
Basic: 5,007 4,993 5,006 5,071
Diluted 5,007 5,039 5,006 5,071
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