ATLANTA Suburban Lodges of America reported that net income for the quarter ended March 31, 2001 was $696,000, or $0.06 per share, compared to $555,000, or $0.04 per share, in the same quarter a year ago.
Total revenues in the first quarter of 2001 increased by 9% to $18.7 million from $17.1 million in the first quarter of 2000. Income from franchising operations also increased by 31% in the first quarter of 2001 compared to last year.
As previously announced, shortly after the close of the first quarter, the company completed a lengthy review of its strategic alternatives to maximize share value. Expenses of $475,000 incurred in connection with the strategic review have been charged against the companys 2001 first quarter earnings.
One of the results of the strategic review was a decision to sell 11 unimproved sites the company was holding for its own future development. This decision resulted in the recording of an impairment reserve of approximately $6.7 million, the majority of which was for development expenses incurred prior to 1999. (4/25/01)