BETHESDA, MD— Crestline Capital Corp. reported fourth quarter 2001 EBITDA of $20.4 million, a 54% decrease from 2000 EBITDA of $44.8 million. Full year 2001 EBITDA was $84.0 million, a 38% decrease from 2000 EBITDA of $135.2 million. The company said that 2001 results have been significantly impacted by the January 2001 sale of the Host Marriott full-service hotel leases, which substantially reduced revenue and EBITDA for 2001 and negatively impacted year-over-year comparisons. Historical EBITDA for the fourth quarter and full year 2000 included approximately $16.0 million and $48.7 million, respectively, related to the full-service hotel leases. The fourth quarter of 2001 and full year 2001 EBITDA included $2.5 million and $9.5 million, respectively, in non-recurring corporate expenses. Diluted earnings per common share were $.94 for the fourth quarter of 2001. For full year 2001, the company reported diluted earnings of $9.16 per share, including the one-time gains related to asset sales, as well as non-recurring charges related to the write-down of certain assets, restructuring charges and the purchase of stock options for two terminated executives. Excluding these 2001 items, diluted earnings per share were $1.30 for full year 2001 and $.28 for the fourth quarter of 2001 versus $2.69 for full year 2000 and $.94 for the fourth quarter of 2000. Pro forma fourth quarter 2001 EBITDA was a loss of $1.9 million, compared to pro forma fourth quarter 2000 EBITDA of $3.3 million. Pro forma 2001 full year EBITDA was a loss of $1.8 million, compared to pro forma 2000 full year EBITDA of $4.5 million, reported the company. Bruce Wardinski, chairman of the Board, president/CEO, stated, “The year 2001 was another exciting year for Crestline Capital. We executed key phases of our strategy, including: the sale of our full-services leases to Host Marriott; the sale of 10 Residence Inn hotels that we did not manage; and the execution of a definitive agreement to sell our senior living business, which closed in early January 2002. We are now 100% focused on the lodging industry with the strategy to continue to grow our hotel management business.”
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