Chatham Lodging Trust(US:CLDT)2019-07-31 15:09Financial Performance - Total revenue for Q2 2019 was $87.874 million, an increase of 2.9% compared to $85.374 million in Q2 2018[14] - Net income attributable to common shareholders for Q2 2019 was $9.437 million, down 29.0% from $13.385 million in Q2 2018[14] - Operating income before loss on sale of hotel property was $19.433 million, slightly up from $19.134 million in the same period last year[14] - Net income for the six months ended June 30, 2019, was $11,153,000, compared to $16,353,000 for the same period in 2018, representing a decrease of approximately 32.5%[26] - Net income for the three months ended June 30, 2019, was $9.5 million, down from $13.5 million for the same period in 2018, reflecting a decrease of 29.6%[151] - Net income decreased to $11.2 million for the six months ended June 30, 2019, down from $16.4 million for the same period in 2018, reflecting a change of approximately 31.4%[182] Revenue Breakdown - Room revenue comprised 91.0% of total revenue for the quarter ended June 30, 2019, amounting to $80.0 million, up from $78.3 million in 2018, reflecting a 2.2% increase[125] - Revenue from the Residence Inn Summerville since acquisition was $1.024 million with an operating income of $409,000, while the Courtyard Dallas Downtown generated $1.990 million in revenue and $606,000 in operating income[46] - Food and beverage revenue increased by $0.3 million to $2.5 million for the quarter ended June 30, 2019, compared to $2.2 million in 2018[126] - Other operating revenue rose by $0.4 million to $3.9 million for the quarter ended June 30, 2019, driven by increases in parking and miscellaneous room income[127] - Room revenue for the six months ended June 30, 2019, was $148.1 million, up 2.4% from $144.5 million in 2018, with a contribution of $5.1 million from two hotels acquired in 2018[157] - Food and beverage revenue increased to $5.0 million for the six months ended June 30, 2019, a rise of 15.1% compared to $4.3 million in 2018[158] - Other operating revenue rose to $7.6 million for the six months ended June 30, 2019, up 15.2% from $6.6 million in 2018[159] Expenses and Losses - Total hotel operating expenses increased to $44.129 million in Q2 2019, compared to $42.967 million in Q2 2018, reflecting a rise of 2.7%[14] - Hotel operating expenses increased by $3.3 million to $86.0 million for the six months ended June 30, 2019, primarily due to the two hotels acquired in 2018[166] - Loss on sale of hotel property increased by $3.3 million for the six months ended June 30, 2019, due to the sale of two hotels in May 2019[175] - Loss on sale of hotel property increased by $3.3 million for the three months ended June 30, 2019, due to the sale of two hotels in Pennsylvania[144] - Depreciation and amortization expense rose by $1.1 million from $11.9 million in Q2 2018 to $13.0 million in Q2 2019, with $0.6 million attributed to the two hotels acquired in 2018[139] Cash and Assets - Cash and cash equivalents increased to $8.847 million as of June 30, 2019, from $7.192 million at the end of 2018[12] - Total assets as of June 30, 2019, were $1.444 billion, a slight increase from $1.439 billion at the end of 2018[12] - The company had cash, cash equivalents, and restricted cash of approximately $26.9 million as of June 30, 2019, down from $32.3 million at the end of 2018[203] Debt and Financing - Mortgage debt decreased to $499.403 million from $501.782 million at the end of 2018, showing a reduction of 0.5%[12] - Total debt outstanding as of June 30, 2019, was $578,403 thousand, a slight decrease from $583,282 thousand as of December 31, 2018[61] - The maximum borrowing availability under the senior unsecured revolving credit facility was $250.0 million as of June 30, 2019[63] - The company had $171.0 million available under its $250.0 million senior unsecured revolving credit facility as of June 30, 2019[203] Dividends and Shareholder Returns - The company declared distributions of $0.33 per common share for both Q2 2019 and Q2 2018[14] - The company declared dividends of $0.66 per share for the six months ended June 30, 2019, totaling $30,814,000, compared to $30,294,000 for the same period in 2018[22] - The Company declared total common share dividends of $0.33 per share for the three months ended June 30, 2019, and $0.66 per share for the six months ended June 30, 2019[72] Joint Ventures and Acquisitions - As of June 30, 2019, the Company wholly owned 40 hotels with a total of 6,092 rooms across 15 states and the District of Columbia[35] - The Company holds a 10.3% noncontrolling interest in a joint venture owning 47 hotels and a 10% interest in another joint venture owning 48 hotels, totaling 12,500 rooms[35] - The Company acquired the Residence Inn Summerville for $20.8 million and the Courtyard Dallas Downtown for $49.0 million in 2018[45] Tax and Regulatory Matters - The Company continues to recognize a full valuation allowance equal to 100% of the gross deferred tax assets due to uncertainty regarding the utilization of these assets[69] - The Company was notified of an ongoing examination by the IRS regarding its tax return for the year ended December 31, 2016, which could materially impact its financial position[70] Legal Matters - The company is involved in two class action lawsuits related to wage and hour law violations, with an estimated exposure of $0.1 million included in accounts payable[102]