DiamondRock Hospitality Company Announces Unaudited Consolidated Earnings Results for the Third Quarter and Nine Months Ended September 30, 2014; Revised Earnings Guidance for 2014; Provides Earnings Guidance for the Fourth Quarter of 2014
Nov 4 14
DiamondRock Hospitality Company announced unaudited consolidated earnings results for the third quarter and nine months ended September 30, 2014. For the quarter, the company reported total revenues of $229,217,000 against $204,345,000 a year ago. Operating profit was $38,172,000 against operating loss of $20,945,000 a year ago. Income from continuing operations before income was taxes was $47,541,000 against $8,133,000 a year ago. Income from continuing operations was $43,808,000 or $0.22 per share against $7,679,000 or $0.04 per share a year ago. Net income was $43,808,000 or $0.22 per basic and diluted share against $8,564,000 or $0.04 per basic and diluted share a year ago. EBITDA was $87,559,000 against $49,882,000 a year ago. Adjusted EBITDA was $66,814,000 against $50,960,000 a year ago. FFO was $69,175,000 against $34,818,000 a year ago. Adjusted FFO was $48,300,000 or $0.25 per share against $35,854,000 or $0.18 per share a year ago.
For the nine months, the company reported total revenues of $649,235,000 against $598,221,000 a year ago. Operating profit was $103,270,000 against $53,666,000 a year ago. Income from continuing operations before income was $100,965,000 against was $15,758,000 a year ago. Income from continuing operations was $99,762,000 or $0.51 per share against $16,999,000 or $0.09 per share a year ago. Net income was $99,762,000 or $0.51 per basic and diluted share against $19,509,000 or $0.10 per basic and diluted share a year ago. EBITDA was $220,357,000 against $141,356,000 a year ago. Adjusted EBITDA was $175,002,000 against $147,643,000 a year ago. FFO was $174,087,000 against $99,789,000 a year ago. Adjusted FFO was $129,718,000 or $0.66 per share against $105,843,000 or $0.54 per share a year ago. The company has spent approximately $56.1 million on capital improvements during the nine months ended September 30, 2014.
The company is increasing its full year 2014 guidance to incorporate its third quarter outperformance and the acquisition of the Inn at Key West. The company now expects the full year 2014 results to be as follows: For the year, the company is reaffirming its full year 2014 guidance of adjusted EBITDA to be in the range of $232 million to $236 million against $225.5 million to $235.5 million as previously expected. Adjusted FFO to be in the range of $172 million to $175 million against $165 million to $172 million as previously expected. Adjusted FFO per share to be in the range of $0.87 to $0.89 against $0.84 to $0.88 as previously expected. The company expects net income to be in the range of $117,577,000 to $119,577,000, EBITDA to be in the range of $276,177,000 to $280,177,000, FFO to in the range of $215,326,000 to $218,326,000, and adjusted FFO to be in the range of $172,000,000 to $175,000,000 and adjusted FFO per share of $0.87 to $0.89. The company continues to expect to spend approximately $95 million on capital improvements at its hotels in 2014, of which approximately $45 million relates to the completion of the $140 million capital improvement program and approximately $50 million relates to new 2014 capital projects. The company updated 2014 guidance is for RevPAR growth of 11.5% to 12.5%, an increase of 150 basis points at the midpoint.
For the fourth quarter, the company expects portfolio to continue to generate above-market RevPAR and margin growth despite tougher comparisons and less-dynamic city-wide calendars.
DiamondRock Hospitality Company Amends Article II, Section 7 of Third Amended and Restated Bylaws
Nov 3 14
Effective November 3, 2014, the board of directors of DiamondRock Hospitality Company amended Article II, Section 7 of the company's Third Amended and Restated Bylaws to implement a majority voting standard for the election of directors in uncontested elections, retaining the plurality standard for elections in which the number of director nominees exceeds the number of directors to be elected. Pursuant to the amended Bylaws provision, in uncontested elections director nominees will be elected by the vote of a majority of the votes cast with respect to the nominee, which means that the number of votes cast for a director must exceed the number of votes cast against the nominee. In addition, under the amended Bylaws provision, if an incumbent director is not elected pursuant to the majority voting standard in an uncontested election, the director must tender his or her resignation to the Board for consideration. The Nominating and Corporate Governance Committee of the Board will recommend to the full Board whether to accept or reject the resignation, and the Board will act on the resignation and disclose its decision and reasoning within 90 days from the date of certification of the election results.