ATLANTA— Lodgian, Inc. reported results for the year ended December 31, 2004. For the year 2004, EBITDA rose to $49.5 million, which included $10.2 million of hurricane damage, impairment losses and reorganization-related charges, up from $39.1 million in 2003, which included $18.1 million in impairment losses and reorganization-related charges. Adjusted EBITDA increased to $59.7 million from $57.2 million. The company has submitted business interruption claims for September through December 2004 in the amount of $2.1 million for two hotels in Florida that closed as a result of hurricane damage. The recovery of any portion of these claims is not reflected in the 2004 financial results as these claims are subject to negotiation with the companys insurance carriers, according to the company. In the fourth quarter, the company reported $0.3 million of casualty losses and repair expenses related to hurricane damage at eight of its hotels in Florida and South Carolina, bringing the total for the year to $2.3 million. Two of the companys hotels— the Crowne Plaza West Palm Beach, FL and the Holiday Inn Melbourne, FL, remain closed. Room revenue displacement at these two hotels was $2.2 million for the fourth quarter and $2.7 million for the full year. Due to hurricane warnings and damage, the other six impacted hotels had displaced room revenues of $0.5 million with an estimated impact on operating results of $0.3 million for the full year. The company is recognizing expenses related to hurricane damage repairs as these expenses are incurred at all eight damaged hotels. For the year ended December 31, 2004, the company incurred $1.9 million in hurricane clean-up and repair costs, wrote off damaged assets with a net book value of $3.7 million, and recorded $3.3 million as an insurance receivable to cover a portion of these repairs and asset replacements, net of insurance deductibles, which resulted in a net casualty loss of $2.3 million. Upon completion of all claims, the proceeds the company will receive for the hurricane losses will be reduced by the aggregate deductible of $3.1 million on six of its hotels, plus an as-yet-to-be-determined amount for repairs and upgrades not covered by insurance. In addition, the company incurred repair expenses at two other hotels which did not meet the deductible. During 2004, 16 hotels were under renovation, causing additional displacement of $2.6 million of total revenues. Also impacting 2004 results were Sarbanes-Oxley compliance costs, which were $1.4 million for the full year. Full year RevPAR, excluding the two temporarily closed hotels, rose 4.8 percent, on a 1.9 percent increase in occupancy and a 2.9 percent rise in ADR. For the year, the company completed 16 hotel renovations in 2004, spending $35.2 million on continuing operations hotels; it sold 11 properties and two land parcels in 2004 for total net proceeds of $41.7 million, of which we used $37.4 million to reduce debt; it completed a one-for-three reverse stock split and a common stock offering, a portion of the proceeds of which were used to redeem Series A preferred shares, resulting in annual savings of approximately $17 million in preferred dividend interest expense; and it refinanced mortgage debt, fixing the interest rate and lengthening the maturity on a substantial portion of debt.