Company Quick10K Filing
Sotherly Hotels
Price6.70 EPS0
Shares14 P/E258
MCap95 P/FCF4
Net Debt325 EBIT16
TEV421 TEV/EBIT26
TTM 2019-09-30, in MM, except price, ratios
10-Q 2020-03-31 Filed 2020-06-24
10-K 2019-12-31 Filed 2020-03-16
10-Q 2019-09-30 Filed 2019-11-12
10-Q 2019-06-30 Filed 2019-08-08
10-Q 2019-03-31 Filed 2019-05-08
10-K 2018-12-31 Filed 2019-03-15
10-Q 2018-09-30 Filed 2018-11-09
10-Q 2018-06-30 Filed 2018-08-09
10-Q 2018-03-31 Filed 2018-05-10
10-K 2017-12-31 Filed 2018-03-16
10-Q 2017-09-30 Filed 2017-11-08
10-Q 2017-06-30 Filed 2017-08-10
10-Q 2017-03-31 Filed 2017-05-12
10-K 2016-12-31 Filed 2017-03-23
10-Q 2016-09-30 Filed 2016-11-14
10-Q 2016-06-30 Filed 2016-08-12
10-Q 2016-03-31 Filed 2016-05-11
10-K 2015-12-31 Filed 2016-03-25
10-Q 2015-09-30 Filed 2015-11-13
10-Q 2015-06-30 Filed 2015-08-12
10-Q 2015-03-31 Filed 2015-05-14
10-K 2014-12-31 Filed 2015-04-14
10-Q 2014-09-30 Filed 2014-11-05
10-Q 2014-06-30 Filed 2014-08-06
10-Q 2014-03-31 Filed 2014-05-14
10-K 2013-12-31 Filed 2014-03-25
10-Q 2013-09-30 Filed 2013-11-07
10-Q 2013-06-30 Filed 2013-08-07
10-Q 2013-03-31 Filed 2013-05-08
10-K 2012-12-31 Filed 2013-03-20
10-Q 2012-09-30 Filed 2012-11-07
10-Q 2012-06-30 Filed 2012-08-09
10-Q 2012-03-31 Filed 2012-05-02
10-K 2011-12-31 Filed 2012-03-20
10-Q 2011-09-30 Filed 2011-11-09
10-Q 2011-06-30 Filed 2011-08-10
10-Q 2011-03-31 Filed 2011-05-04
10-K 2010-12-31 Filed 2011-03-29
10-Q 2010-09-30 Filed 2010-11-10
10-Q 2010-06-30 Filed 2010-08-10
10-Q 2010-03-31 Filed 2010-05-14
10-K 2009-12-31 Filed 2010-03-05
8-K 2020-06-24
8-K 2020-05-07
8-K 2020-04-29
8-K 2020-04-28
8-K 2020-04-01
8-K 2020-03-20
8-K 2020-03-17
8-K 2020-02-27
8-K 2020-02-14
8-K 2020-01-01
8-K 2019-12-13
8-K 2019-11-21
8-K 2019-11-12
8-K 2019-09-26
8-K 2019-09-06
8-K 2019-08-06
8-K 2019-05-20
8-K 2019-05-07
8-K 2019-05-01
8-K 2019-04-30
8-K 2019-04-26
8-K 2019-04-18
8-K 2019-04-16
8-K 2019-04-11
8-K 2019-02-26
8-K 2019-02-26
8-K 2018-12-12
8-K 2018-11-06
8-K 2018-09-18
8-K 2018-08-31
8-K 2018-08-07
8-K 2018-07-31
8-K 2018-07-27
8-K 2018-05-08
8-K 2018-05-01
8-K 2018-03-28
8-K 2018-03-01
8-K 2018-02-27
8-K 2018-02-26
8-K 2018-02-08
8-K 2018-02-05
8-K 2018-01-01

SOHO 10Q Quarterly Report

Part I
Item 1. Consolidated Financial Statements
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Item 4.Controls and Procedures
Part II
Item 1. Legal Proceedings
Item 1A. Risk Factors
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Item 3. Defaults Upon Senior Securities
Item 4. Mine Safety Disclosures
Item 5. Other Information
Item 6. Exhibits
EX-10.16 soho-ex1016_70.htm
EX-10.17 soho-ex1017_69.htm
EX-10.18 soho-ex1018_68.htm
EX-31.1 soho-ex311_12.htm
EX-31.2 soho-ex312_10.htm
EX-31.3 soho-ex313_7.htm
EX-31.4 soho-ex314_8.htm
EX-32.1 soho-ex321_9.htm
EX-32.2 soho-ex322_13.htm
EX-32.3 soho-ex323_11.htm
EX-32.4 soho-ex324_6.htm

Sotherly Hotels Earnings 2020-03-31

Balance SheetIncome StatementCash Flow
51040830620410202012201420172020
Assets, Equity
554331208-32012201420172020
Rev, G Profit, Net Income
855015-20-55-902012201420172020
Ops, Inv, Fin

10-Q 1 soho-10q_20200331.htm 10-Q soho-10q_20200331.htm

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 10-Q

 

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2020

 

OR

 

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from           to          .

 

 

SOTHERLY HOTELS INC.

(Exact name of registrant as specified in its charter)

 

 

Maryland

001-32379

20-1531029

(State or Other Jurisdiction of

Incorporation or Organization)

(Commission

File Number)

(I.R.S. Employer

Identification No.)

 

SOTHERLY HOTELS LP

(Exact name of registrant as specified in its charter)

 

 

Delaware

001-36091

20-1965427

(State or Other Jurisdiction of

Incorporation or Organization)

(Commission

File Number)

(I.R.S. Employer

Identification No.)

 

306 South Henry Street, Suite 100

Williamsburg, Virginia 23185

(757) 229-5648

(Address and Telephone Number of Principal Executive Offices)

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Sotherly Hotels Inc.    Yes      No       Sotherly Hotels LP    Yes      No  

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (section 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files.)

Sotherly Hotels Inc.    Yes      No       Sotherly Hotels LP    Yes      No  

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer”, “accelerated filer”, “smaller reporting company”, and “emerging growth company” in Rule 12b-2 of the Securities Exchange Act.

Sotherly Hotels Inc.

 

Large Accelerated Filer

 

 

Accelerated Filer

 

 

 

 

 

 

Non-accelerated Filer

 

 

Smaller Reporting Company

 

 

 

 

 

 

Emerging Growth Company

 

 

 

 

Sotherly Hotels LP

 

Large Accelerated Filer

 

 

Accelerated Filer

 

 

 

 

 

 

Non-accelerated Filer

 

 

Smaller Reporting Company

 

 

 

 

 

 

Emerging growth company

 

 

 

 

 


If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    

Sotherly Hotels Inc.    Yes      No   Sotherly Hotels LP    Yes      No  

 

As of June 22, 2020, there were 14,823,580 shares of Sotherly Hotels Inc.’s common stock issued and outstanding.  

 

Securities registered or to be registered pursuant to Section 12(b) of the Act.

 

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, $0.01 par value

SOHO

The NASDAQ Stock Market LLC

8.0% Series B Cumulative Redeemable Perpetual Preferred Stock, $0.01 par value

SOHOB

The NASDAQ Stock Market LLC

7.875% Series C Cumulative Redeemable Perpetual Preferred Stock, $0.01 par value

SOHOO

The NASDAQ Stock Market LLC

8.25% Series D Cumulative Redeemable Perpetual Preferred Stock, $0.01 par value

SOHON

The NASDAQ Stock Market LLC

 

 

 


EXPLANATORY NOTE

We refer to Sotherly Hotels Inc. as the “Company,” Sotherly Hotels LP as the “Operating Partnership,” the Company’s common stock as “common stock,” the Company’s preferred stock as “preferred stock,” and the Operating Partnership’s common partnership interest as “partnership units,” and the Operating Partnership’s preferred interest as the “preferred units.”  References to “we” and “our” mean the Company, its Operating Partnership and its subsidiaries and predecessors, collectively, unless the context otherwise requires or where otherwise indicated.

As previously disclosed in our Current Report on Form 8-K filed by the Company with the U.S. Securities and Exchange Commission (the “SEC”) on May 8, 2020, the Company relied on the SEC order (Release No. 34-88318), as modified and superseded by a new SEC order (Release No. 34-88465) (the “SEC Order”), issued under Section 36 of the Securities Exchange Act of 1934, as amended (“Exchange Act”) in filing this Form 10-Q for the quarter ended March 31, 2020 (the “Quarterly Report”).  The SEC Order provides conditional relief to public companies that are unable to timely comply with certain filing obligations as a result of the ongoing novel coronavirus (“COVID-19”).  The SEC Order provides that a registrant subject to the reporting requirements of Exchange Act Section 13(a) or 15(d), and any person required to make any filings with respect to such registrant, is exempt from any requirement to file or furnish materials with the SEC under Exchange Act Sections 13(a), 13(f), 13(g), 14(a), 14(c), 14(f), 15(d) and Regulations 13A, Regulation 13D-G (except for those provisions mandating the filing of Schedule 13D or amendments to Schedule 13D), 14A, 14C and 15D, and Exchange Act Rules 13f-1, and 14f-1, as applicable, if certain conditions are satisfied.

The Company and the Operating Partnership relied on the SEC Order to delay the filing of our Quarterly Report due to the significant impacts and disruptions of the COVID-19 pandemic.  The effects of the ongoing COVID-19 pandemic and the resultant state orders, including in Virginia, where the Company’s headquarters is located, have limited access to our facilities and impacted normal working patterns as they required the majority of our staff to stay at home and transition to a remote working environment on very short notice.  At the same time, the Company’s attention and resources have been focused on addressing the severe impacts of the COVID-19 pandemic on our business and operations as described in further detail below.  These factors delayed our ability to complete and file our Quarterly Report by May 11, 2020.

The Company conducts virtually all of its activities through the Operating Partnership and is its sole general partner. The partnership agreement provides that the Operating Partnership will assume and pay when due, or reimburse the Company for payment of, all costs and expenses relating to the ownership and operations of, or for the benefit of, the Operating Partnership. The partnership agreement further provides that all expenses of the Company are deemed to be incurred for the benefit of the Operating Partnership.

This report combines the Quarterly Reports on Form 10-Q for the period ended March 31, 2020 of the Company and the Operating Partnership. We believe combining the quarterly reports into this single report results in the following benefits:

 

combined reports better reflect how management and investors view the business as a single operating unit;

 

combined reports enhance investors' understanding of the Company and the Operating Partnership by enabling them to view the business as a whole and in the same manner as management;

 

combined reports are more efficient for the Company and the Operating Partnership and result in savings of time, effort and expense; and

 

combined reports are more efficient for investors by reducing duplicative disclosure and providing a single document for their review.

To help investors understand the significant differences between the Company and the Operating Partnership, this report presents the following separate sections for each of the Company and the Operating Partnership:

 

Consolidated Financial Statements;

 

the following Notes to Consolidated Financial Statements:

 

Note 7 – Preferred Stock and Units;

 

Note 8 – Common Stock and Units;

 

Note 13 – Loss Per Share and Per Unit; and

 

Note 14 – Subsequent Events;

 

Part I, Item 4 - Controls and Procedures;

 

Part II, Item 2 – Unregistered Sales of Equity Securities and Use of Proceeds; and

3


 

Part II, Item 6 - Certifications of CEO and CFO pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act.

 

 

4


SOTHERLY HOTELS INC.

SOTHERLY HOTELS LP

INDEX

 

 

 

 

 

Page

 

 

 

 

 

PART I

Item 1.

 

Consolidated Financial Statements

 

6

 

 

 

 

 

 

 

Sotherly Hotels Inc.

 

 

 

 

Consolidated Balance Sheets as of March 31, 2020 (unaudited) and December 31, 2019

 

6

 

 

Consolidated Statements of Operations (unaudited) for the Three Months Ended March 31, 2020 and 2019

 

7

 

 

Consolidated Statements of Changes in Equity (unaudited) for the Three Months Ended March 31, 2020 and 2019

 

8

 

 

Consolidated Statements of Cash Flows (unaudited) for the Three Months Ended March 31, 2020 and 2019

 

10

 

 

 

 

 

 

 

Sotherly Hotels LP

 

 

 

 

Consolidated Balance Sheets as of March 31, 2020 (unaudited) and December 31, 2019

 

11

 

 

Consolidated Statements of Operations (unaudited) for the Three Months Ended March 31, 2020 and 2019

 

12

 

 

Consolidated Statements of Changes in Partners’ Capital (unaudited) for the Three Months Ended March 31, 2020 and 2019

 

13

 

 

Consolidated Statements of Cash Flows (unaudited) for the Three Months Ended March 31, 2020 and 2019

 

15

 

 

Notes to Consolidated Financial Statements

 

16

Item 2.

 

Management’s Discussion and Analysis of Financial Condition and Results of Operations

 

36

Item 3.

 

Quantitative and Qualitative Disclosures About Market Risk

 

48

Item 4

 

Controls and Procedures

 

48

 

 

 

 

 

PART II

Item 1.

 

Legal Proceedings

 

50

Item 1A.

 

Risk Factors

 

50

Item 2.

 

Unregistered Sales of Equity Securities and Use of Proceeds

 

50

Item 3.

 

Defaults Upon Senior Securities

 

50

Item 4.

 

Mine Safety Disclosures

 

51

Item 5.

 

Other Information

 

51

Item 6.

 

Exhibits

 

52

 

5


PART I

 

 

Item 1.

Consolidated Financial Statements

SOTHERLY HOTELS INC.

CONSOLIDATED BALANCE SHEETS

 

 

 

March 31, 2020

 

 

December 31, 2019

 

 

 

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

Investment in hotel properties, net

 

$

440,610,440

 

 

$

443,267,448

 

Cash and cash equivalents

 

 

14,736,207

 

 

 

23,738,066

 

Restricted cash

 

 

7,339,713

 

 

 

4,246,170

 

Accounts receivable, net

 

 

4,248,338

 

 

 

4,812,479

 

Accounts receivable - affiliate

 

 

265,401

 

 

 

101,771

 

Prepaid expenses, inventory and other assets

 

 

7,562,732

 

 

 

5,648,772

 

Deferred income taxes

 

 

 

 

 

5,412,084

 

TOTAL ASSETS

 

$

474,762,831

 

 

$

487,226,790

 

LIABILITIES

 

 

 

 

 

 

 

 

Mortgage loans, net

 

$

357,314,587

 

 

$

358,633,884

 

Accounts payable and accrued liabilities

 

 

27,098,417

 

 

 

20,189,903

 

Advance deposits

 

 

2,070,309

 

 

 

2,785,338

 

Dividends and distributions payable

 

 

4,217,385

 

 

 

4,210,494

 

TOTAL LIABILITIES

 

$

390,700,698

 

 

$

385,819,619

 

Commitments and contingencies  (See Note 6)

 

 

 

 

 

 

EQUITY

 

 

 

 

 

 

 

 

Sotherly Hotels Inc. stockholders’ equity

 

 

 

 

 

 

 

 

Preferred stock, $0.01 par value, 11,000,000 shares authorized:

 

 

 

 

 

 

 

 

8.0% Series B cumulative redeemable perpetual preferred stock,

   liquidation preference $25 per share, 1,610,000 shares each issued

   and outstanding at March 31, 2020 and December 31, 2019, respectively.

 

 

16,100

 

 

 

16,100

 

7.875% Series C cumulative redeemable perpetual preferred stock,

   liquidation preference $25 per share, 1,554,610 shares each issued

   and outstanding at March 31, 2020 and December 31, 2019, respectively.

 

 

15,546

 

 

 

15,546

 

8.25% Series D cumulative redeemable perpetual preferred stock,

   liquidation preference $25 per share, 1,200,000 shares each issued

   and outstanding at March 31, 2020 and December 31, 2019, respectively.

 

 

12,000

 

 

 

12,000

 

Common stock, par value $0.01, 69,000,000 shares authorized, 14,823,580

shares issued and outstanding at March 31, 2020 and 14,272,378 shares issued and outstanding at December 31, 2019.

 

 

148,235

 

 

 

142,723

 

Additional paid-in capital

 

 

180,258,406

 

 

 

180,515,861

 

Unearned ESOP shares

 

 

(4,036,308

)

 

 

(4,105,637

)

Distributions in excess of retained earnings

 

 

(90,134,337

)

 

 

(73,990,690

)

Total Sotherly Hotels Inc. stockholders’ equity

 

 

86,279,642

 

 

 

102,605,903

 

Noncontrolling interest

 

 

(2,217,509

)

 

 

(1,198,732

)

TOTAL EQUITY

 

 

84,062,133

 

 

 

101,407,171

 

TOTAL LIABILITIES AND EQUITY

 

$

474,762,831

 

 

$

487,226,790

 

 

The accompanying notes are an integral part of these consolidated financial statements.

 

 

6


SOTHERLY HOTELS INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited)

 

 

 

 

 

Three Months Ended

 

 

Three Months Ended

 

 

 

 

 

March 31, 2020

 

 

March 31, 2019

 

 

 

 

 

(unaudited)

 

 

(unaudited)

 

REVENUE

 

 

 

 

 

 

 

 

 

 

Rooms department

 

 

 

$

24,744,923

 

 

$

32,951,871

 

Food and beverage department

 

 

 

 

8,143,974

 

 

 

9,723,124

 

Other operating departments

 

 

 

 

4,319,568

 

 

 

4,715,309

 

Total revenue

 

 

 

 

37,208,465

 

 

 

47,390,304

 

EXPENSES

 

 

 

 

 

 

 

 

 

 

Hotel operating expenses

 

 

 

 

 

 

 

 

 

 

Rooms department

 

 

 

 

7,083,191

 

 

 

7,781,439

 

Food and beverage department

 

 

 

 

6,612,306

 

 

 

7,136,833

 

Other operating departments

 

 

 

 

2,271,629

 

 

 

1,910,135

 

Indirect

 

 

 

 

16,181,841

 

 

 

17,389,680

 

Total hotel operating expenses

 

 

 

 

32,148,967

 

 

 

34,218,087

 

Depreciation and amortization

 

 

 

 

4,982,876

 

 

 

6,028,735

 

Gain on disposal of assets

 

 

 

 

 

 

 

(4,008

)

Corporate general and administrative

 

 

 

 

1,880,125

 

 

 

1,684,444

 

Total operating expenses

 

 

 

 

39,011,968

 

 

 

41,927,258

 

NET OPERATING (LOSS) INCOME

 

 

 

 

(1,803,503

)

 

 

5,463,046

 

Other income (expense)

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

 

 

(4,561,840

)

 

 

(5,305,114

)

Interest income

 

 

 

 

60,365

 

 

 

99,296

 

Unrealized loss on hedging activities

 

 

 

 

(1,585,632

)

 

 

(490,611

)

Gain on involuntary conversion of assets

 

 

 

 

12,439

 

 

 

161,334

 

Net loss before income taxes

 

 

 

 

(7,878,171

)

 

 

(72,049

)

Income tax provision

 

 

 

 

(5,454,034

)

 

 

(318,156

)

Net loss

 

 

 

 

(13,332,205

)

 

 

(390,205

)

Less: Net loss attributable to noncontrolling interest

 

 

 

 

1,197,416

 

 

 

206,949

 

Net loss attributable to the Company

 

 

 

 

(12,134,789

)

 

 

(183,256

)

Distributions to preferred stockholders

 

 

 

 

(2,188,910

)

 

 

(1,470,507

)

Net loss available to common stockholders

 

 

 

$

(14,323,699

)

 

$

(1,653,763

)

Net loss per share available to common stockholders

 

 

 

 

 

 

 

 

 

 

Basic

 

 

 

$

(1.01

)

 

$

(0.12

)

Weighted average number of common shares outstanding

 

 

 

 

 

 

 

 

 

 

Basic

 

 

 

 

14,246,216

 

 

 

13,610,750

 

 

The accompanying notes are an integral part of these consolidated financial statements.

 

 

7


SOTHERLY HOTELS INC.

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Additional

 

 

Unearned

 

 

Distributions

 

 

 

 

 

 

 

 

 

 

 

Preferred Stock

 

 

Common Stock

 

 

Paid-

 

 

ESOP

 

 

in Excess of

 

 

Noncontrolling

 

 

 

 

 

 

 

Shares

 

 

Par Value

 

 

Shares

 

 

Par Value

 

 

In Capital

 

 

Shares

 

 

Retained Earnings

 

 

Interest

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balances at December 31, 2019

 

 

4,364,610

 

 

$

43,646

 

 

 

14,272,378

 

 

$

142,723

 

 

$

180,515,861

 

 

$

(4,105,637

)

 

$

(73,990,690

)

 

$

(1,198,732

)

 

$

101,407,171

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(12,134,789

)

 

 

(1,197,416

)

 

 

(13,332,205

)

Issuance of common stock

 

 

 

 

 

 

 

 

2,250

 

 

 

22

 

 

 

14,153

 

 

 

 

 

 

 

 

 

 

 

 

14,175

 

Issuance of restricted

common stock awards

 

 

 

 

 

 

 

 

60,000

 

 

 

600

 

 

 

93,900

 

 

 

 

 

 

 

 

 

 

 

 

94,500

 

Conversion of units in Operating Partnership to shares of common stock

 

 

 

 

 

 

 

 

488,952

 

 

 

4,890

 

 

 

(370,890

)

 

 

 

 

 

26,266

 

 

 

339,734

 

 

 

 

Amortization of ESOP

shares

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(12,813

)

 

 

69,329

 

 

 

 

 

 

 

 

 

56,516

 

Amortization of restricted stock award

 

 

 

 

 

 

 

 

 

 

 

 

 

 

18,195

 

 

 

 

 

 

 

 

 

 

 

 

18,195

 

Preferred stock dividends declared:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Series B Preferred Stock, $0.50/share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(805,000

)

 

 

 

 

 

(805,000

)

Series C Preferred Stock, $0.492188/share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(765,160

)

 

 

 

 

 

(765,160

)

Series D Preferred Stock, $0.515625/share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(618,750

)

 

 

 

 

 

(618,750

)

Common stock, $0.13/share dividends and distributions declared

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1,846,214

)

 

 

(161,095

)

 

 

(2,007,309

)

Balances at March 31, 2020 (unaudited)

 

 

4,364,610

 

 

$

43,646

 

 

 

14,823,580

 

 

$

148,235

 

 

$

180,258,406

 

 

$

(4,036,308

)

 

$

(90,134,337

)

 

$

(2,217,509

)

 

$

84,062,133

 

The accompanying notes are an integral part of these consolidated financial statements.

 

 

8


SOTHERLY HOTELS INC.

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Additional

 

 

Unearned

 

 

Distributions

 

 

 

 

 

 

 

 

 

 

 

Preferred Stock

 

 

Common Stock

 

 

Paid-

 

 

ESOP

 

 

in Excess of

 

 

Noncontrolling

 

 

 

 

 

 

 

Shares

 

 

Par Value

 

 

Shares

 

 

Par Value

 

 

In Capital

 

 

Shares

 

 

Retained Earnings

 

 

Interest

 

 

Total

 

Balances at December 31, 2018

 

 

2,962,141

 

 

$

29,621

 

 

 

14,209,378

 

 

$

142,093

 

 

$

147,085,112

 

 

$

(4,379,742

)

 

$

(61,052,418

)

 

$

441,706

 

 

$

82,266,372

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(183,256

)

 

 

(206,949

)

 

 

(390,205

)

Issuance of restricted

common stock awards

 

 

 

 

 

 

 

 

13,000

 

 

 

130

 

 

 

92,203

 

 

 

 

 

 

 

 

 

 

 

 

92,333

 

Amortization of ESOP

shares

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1,141

)

 

 

67,234

 

 

 

 

 

 

 

 

 

66,093

 

Amortization of restricted stock award

 

 

 

 

 

 

 

 

 

 

 

 

 

 

8,025

 

 

 

 

 

 

 

 

 

 

 

 

8,025

 

Preferred stock dividends declared:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Series B Preferred Stock, $0.50/share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(805,000

)

 

 

 

 

 

(805,000

)

Series C Preferred Stock, $0.492188/share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(665,507

)

 

 

 

 

 

(665,507

)

Common stock, $0.125/share dividends and distributions declared

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1,699,906

)

 

 

(222,268

)

 

 

(1,922,174

)

Balances at March 31, 2019 (unaudited)

 

 

2,962,141

 

 

$

29,621

 

 

 

14,222,378

 

 

$

142,223

 

 

$

147,184,199

 

 

$

(4,312,508

)

 

$

(64,406,087

)

 

$

12,489

 

 

$

78,649,937

 

 

The accompanying notes are an integral part of these consolidated financial statements.

 

 

9


SOTHERLY HOTELS INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)

 

 

 

 

 

Three Months Ended

 

 

Three Months Ended

 

 

 

 

March 31, 2020

 

 

March 31, 2019

 

 

 

 

(unaudited)

 

 

(unaudited)

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

 

Net loss

 

 

$

(13,332,205

)

 

$

(390,205

)

Adjustments to reconcile net loss to net cash provided by operating activities:

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

 

4,982,876

 

 

 

6,028,735

 

Amortization of deferred financing costs

 

 

 

141,391

 

 

 

276,561

 

Amortization of mortgage premium

 

 

 

(6,170

)

 

 

(6,170

)

Gain on involuntary conversion of assets

 

 

 

(12,439

)

 

 

(161,334

)

Unrealized loss on hedging activities

 

 

 

1,585,632

 

 

 

490,611

 

Loss on disposal of assets

 

 

 

 

 

 

(4,008

)

ESOP and stock - based compensation

 

 

 

183,386

 

 

 

166,451

 

Changes in assets and liabilities:

 

 

 

 

 

 

 

 

 

Accounts receivable

 

 

 

564,141

 

 

 

(3,580,100

)

Prepaid expenses, inventory and other assets

 

 

 

(1,943,351

)

 

 

(933,647

)

Deferred income taxes

 

 

 

5,412,084

 

 

 

284,679

 

Accounts payable and other accrued liabilities

 

 

 

4,823,067

 

 

 

3,817,060

 

Advance deposits

 

 

 

(715,029

)

 

 

(463,311

)

Accounts receivable - affiliate

 

 

 

(163,630

)

 

 

24,862

 

Net cash provided by operating activities

 

 

 

1,519,753