ShoLodge, Inc. (Nasdaq:LODG) today announced results for its second quarter ended and 28-week period ended July 15, 2001.

HENDERSONVILLE, Tenn.–(BUSINESS WIRE)–Aug. 20, 2001–ShoLodge, Inc. (Nasdaq:LODG) today announced results for its second quarter ended and 28-week period ended July 15, 2001.
For the second quarter, total operating revenues were $10.9 million compared with $21.6 million in the second quarter a year ago, reflecting the effect of the sale of ShoLodge's operating interests in 28 hotels at the end of the second quarter of 2000 and two additional hotels in the first quarter of this year.
Net income for the second quarter of this year was $53,000, or $0.01 per share, after the extraordinary gain on early extinguishment of debt, net of tax, of $105,000, or $0.02 per share, compared with $2.6 million, or $0.50 per share, after the extraordinary gain on early extinguishment of debt, net of tax, of $2.3 million, or $0.43 per share, in the second quarter of 2000.
For the 28 weeks ended July 15, 2001, total operating revenues were $21.9 million compared with $49.0 million in the comparable period a year ago. The 30 hotels sold contributed $33.4 million to hotel operating revenues in the first two quarters of last year versus $638,000 in the first two quarters of this year.
Net income for the first two quarters of this year was $1.6 million, or $0.29 per share (diluted), after the extraordinary gain on early extinguishment of debt, net of tax, of $159,000, or $0.03 per share, compared with $604,000, or $0.11 per share, after the extraordinary gain on early extinguishment of debt, net of tax, of $2.5 million, or $0.47 per share, in the first two quarters of 2000.
Net income for the first two quarters of this year included an after-tax gain of $2.3 million, or $0.41 per share (diluted), from the sale of properties and leasehold interests, compared with an after-tax gain, net of minority interests, of $2.9 million, or $0.54 per share, from the sale of properties in the first two quarters of 2000.
For the second quarter of 2001, total revenues from hotel operations were $3.5 million compared with $17.6 million in the second quarter of 2000. For the 12 hotels opened for all of both quarterly periods (Same-Hotels), revenue increased 17.3% to $3.5 million in the second quarter of this year from $3.0 million in the second quarter of 2000. Same-Hotels RevPAR (Revenue Per Available Room) from the company-owned Shoney's Inns hotels increased to $29.74 in the second quarter of this year compared with $25.63 in the second quarter of 2000.
For the first two quarters of 2001, total revenues from hotel operations were $7.9 million compared with $39.8 million in the first two quarters of 2000. For the 12 Same-Hotels, revenue increased 13.3% to $7.2 million in the first two quarters of this year from $6.4 million in the comparable period last year. Same-Hotels RevPAR from the Shoney's Inns hotels increased to $26.20 in the first two quarters of this year compared with $23.47 in the first two quarters of last year.
Leon Moore, chief executive officer of ShoLodge, said, Our strategy is to continue to focus on our Shoney's Inn chain, in which we own 12 and franchise an additional 62 Shoney's Inns, as well as developing hotels and providing management and reservation services to our Shoney's Inn chain and to third parties.

This press release contains forward-looking statements relating to certain matters, which reflect management's best judgment, based on factors currently known and involve risks and uncertainties. Actual results could differ materially from the anticipated results or expectations expressed in the Company's forward-looking statements. Forward-looking information provided by the Company pursuant to the safe harbor established under the Private Securities Litigation Reform Act of 1995 should be evaluated in the context of these factors which are contained in the Company's Securities and Exchange Commission (SEC) filings, including its periodic reports filed under the Securities Exchange Act of 1934, as amended. Copies of these filings are available upon request from the Company. In addition, the Company disclaims any intent or obligation to update these forward-looking statements.

SHOLODGE, INC.
Unaudited Financial Highlights
(In thousands, except per share amounts)

12 Weeks Ended

7/15/01 7/9/00

Total operating revenues $10,852 $21,593
Hotel operating revenues $3,504 $17,604
Earnings (loss) before
extraordinary gain ($52) $351
Extraordinary gain on early
extinguishment of debt 105 2,286

Net earnings $53 $2,637
======== ========
Earnings per common share:
Basic:
Earnings (loss) before
extraordinary gain ($0.01) $0.07
Extraordinary gain on early
extinguishment of debt 0.02 0.43

Net earnings per share $0.01 $0.50
======== ========
Diluted:
Earnings (loss) before
extraordinary gain ($0.01) $0.07
Extraordinary gain on early
extinguishment of debt 0.02 0.43

Net earnings per share $0.01 $0.50
======== ========
Average shares outstanding:
Basic: 5,534 5,318
Diluted 5,611 5,322

28 Weeks Ended

7/15/01 7/9/00

Total operating revenues $21,915 $48,983
Hotel operating revenues $7,852 $39,806

Earnings (loss) before
extraordinary gain $1,480 ($1,933)
Extraordinary gain on early
extinguishment of debt 159 2,537

Net earnings $1,639 $604
======== ========
Earnings per common share:
Basic:
Earnings (loss) before
extraordinary gain $0.27 ($0.36)
Extraordinary gain on early
extinguishment of debt 0.03 0.47

Net earnings per share $0.30 $0.11
======== ========
Diluted:
Earnings (loss) before
extraordinary gain $0.26 ($0.36)
Extraordinary gain on early
extinguishment of debt 0.03 0.47

Net earnings per share $0.29 $0.11
======== ========
Average shares outstanding:
Basic: 5,539 5,325
Diluted 5,606 5,376