– Generated full year Pro Forma Adjusted Earnings per Share of $0.54
– Signed 107 new franchise agreements in 2015, the largest number of signings since 2008
– Franchise and other fee based revenue grew 11.5 percent for the year and 13.9 percent for the fourth quarter
– Completed a $100 million share repurchase program, acquiring a total of 6.3 million shares – Repaid $153 million of long-term debt in 2015, including $135 million of voluntary prepayments
IRVING, Texas, Feb. 24, 2016 — La Quinta Holdings Inc. ("La Quinta" or the "Company") (NYSE: LQ) today reported its fourth quarter and full year 2015 results on a historical basis, as well as the results of operations on a pro forma basis, giving effect to La Quinta's initial public offering (IPO) in 2014 and the related transactions as described below.
Full Year 2015 Highlights:
Pro Forma Total Adjusted EBITDA increased 4.9 percent to $394.0 million, and Pro Forma Adjusted EBITDA margin increased 30 basis points
Pro Forma Franchise and Management Segment Adjusted EBITDA increased 8.4 percent to $114.6 million
Pro Forma Owned Hotel Segment Adjusted EBITDA increased 4.3 percent to $314.3 million
System-wide comparable RevPAR increased 3.5 percent, ADR increased 2.9 percent and occupancy increased 35 basis points
Pro Forma Adjusted Earnings per Share increased by $0.05 to $0.54; Historical Earnings per Share was $0.20
Pro Forma Adjusted Net Income increased 11.3 percent to $70.1 million; Historical Net Income was $26.4 million
Generated nearly $190 million in free cash flow in 2015; free cash flow represents cash flow from operations of $291 million less capital expenditures of $101 million
Open and operating franchise unit base grew 6 percent while the development pipeline increased by 10 percent
Fourth Quarter 2015 Highlights
Pro Forma Total Adjusted EBITDA decreased 2.1 percent to $78.0 million, and Pro Forma Adjusted EBITDA margin decreased 80 basis points
Pro Forma Franchise and Management Segment Adjusted EBITDA increased 8.9 percent to $27.3 million
Pro Forma Owned Hotel Segment Adjusted EBITDA decreased 4.0 percent to $60.4 million
System-wide comparable RevPAR decreased 0.3 percent, ADR increased 1.3 percent and occupancy decreased 102 basis points
Pro Forma Adjusted Earnings per Share decreased by $0.01 to $0.09; Historical Earnings per Share was $0.06
Pro Forma Adjusted Net Income decreased 6.3 percent to $11.3 million; Historical Net Income was $7.8 million
Opened 19 franchised hotels totaling approximately 1,600 rooms, including the seventh location in Mexico, and the first location in Alaska; Increased franchise pipeline to 228 hotels, representing over 20,500 additional rooms, including agreements to develop seven additional locations in Mexico
Overview
Keith A. Cline, President & Chief Executive Officer of La Quinta, said, "During the fourth quarter and throughout 2015, we continued to execute on our strategic priorities of achieving significant new unit growth in franchising, delivering strong and consistent free cash flow, and opportunistically unlocking value from the owned hotel portfolio. We continued to succeed in expanding our geographic presence with the opening of 19 franchised properties in the fourth quarter, including our first location in Alaska. We also continued to grow our pipeline during 2015, with our franchise development activity resulting in the highest number of franchise agreement signings for any year since 2008 with new locations signed in higher RevPAR markets such as New York, Pennsylvania, Virginia, and Oregon. The pipeline is geographically diverse with over 60% in locations outside of the Company's top three states of Texas, Florida, and California, including the growth of our international presence with the execution of new franchise agreements for ten additional locations in Mexico during 2015."
Mr. Cline continued, "During 2015, we successfully grew our system-wide comparable RevPAR by 3.5% and Pro Forma Adjusted EBITDA by 4.9% to $394 million during a year that faced several challenges, including the ongoing pressures from a prolonged and significant pull back in oil prices and production, the transition of our call center, and significant weather disruptions in Texas. The Company's flexible business model of low fixed overhead costs in its owned units allowed for Pro Forma Adjusted EBITDA margin to increase 30 basis points notwithstanding these challenges. These results translated to free cash flow generation of nearly $190 million in 2015 which was used to fund a portion of both the voluntary debt prepayment of $135 million as well as $100 million in share repurchases. In the fourth quarter, we acquired 5.3 million shares, bringing the total number of shares repurchased to 6.3 million in 2015."
To view full financial release and corresponding tables please click:
