8-K 1 d8k.txt FORM 8-K ================================================================================ SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(D) OF SECURITIES EXCHANGE ACT OF 1934 Date of Report (Date of Earliest Event Reported) December 13, 2001 ------------------------- CRESTLINE CAPITAL CORPORATION (Exact Name of Registrant as Specified in its Charter) Maryland 1-14635 52-2151967 (State or Other Jurisdiction of Incorporation) (Commission File Number) (I.R.S. Employer Identification Number)

6600 Rockledge Drive, Bethesda, Maryland 20817 (Address of Principle Executive Offices) (Zip Code) ------------------------- Registrant's Telephone Number, Including Area Code (240) 694-2000 ================================================================================ FORM 8-K Item 5. Other Events and Regulation FD Disclosure On December 13, 2001, the Company held a special meeting of its stockholders to consider and vote upon a proposal to approve the previously announced sale of the Company's senior living business. At the special meeting, the Company's stockholders approved the sale of the Company's senior living business by a vote of 12,312,161 for, 35,512 against, and 36,158 abstentions. As of the record date, November 7, 2001, there were 15,497,714 shares outstanding and entitled to vote. Item 7. Financial Statements and Exhibits (c) Exhibits. 99.1 Press Release Announcing the Shareholder Approval of the Sale of the Company's Senior Living Business. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. CRESTLINE CAPITAL CORPORATION By: /s/ LARRY K. HARVEY ----------------------------------------------- Larry K. Harvey Date: December 14, 2001 Senior Vice President, Treasurer and Controller ------------------- 2

Forma Adjustments ------------------------------ Sale of Sale of Full-Service Historical Residence Inns Hotel Leases Pro Forma ---------- -------------- ------------ --------- ASSETS Property and equipment, net............................ $ 747,710 $ (87,151) (A) $ - $ 660,559 Hotel working capital.................................. 7,330 - - 7,330 Due from hotel managers................................ 11,128 (567) (A) - 9,505 (1,056) (B) - Due from Marriott Senior Living Services............... 9,289 - - 9,289 Other assets........................................... 83,888 (5,587) (A) (4,357) (D) 73,944 Cash and cash equivalents.............................. 201,188 51,372 (A) 4,357 (D) 169,999 1,056 (B) (40,727) (E) (47,247) (C) ----------- ---------- ----------- ----------- $ 1,060,533 $ (89,180) $ (40,727) $ 930,626 =========== ========== =========== =========== LIABILITIES AND SHAREHOLDERS' EQUITY Debt: Mortgage debt....................................... $ 276,093 $ (53,619) (A) $ - $ 222,474 Other debt.......................................... 72,728 (47,000) (C) - 25,728 ----------- ---------- ----------- ----------- 348,821 (100,619) - 248,202 Hotel working capital notes payable to Host Marriott 7,330 - - 7,330 ----------- ---------- ----------- ----------- Total debt........................................ 356,151 (100,619) - 255,532 Income taxes payable................................... 46,860 - (40,727) (E) 6,133 Accounts payable and accrued expenses.................. 12,074 (550) (A) - 11,277 (247) (C) Lease payable.......................................... 9,286 - - 9,286 Deferred income taxes.................................. 63,579 (2,032) (A) - 61,547 Other liabilities...................................... 24,889 (1,486) (A) - 23,403 ----------- ---------- ----------- ----------- Total liabilities................................. 512,839 (104,934) (40,727) 367,178 ----------- ---------- ----------- ----------- Shareholders' equity: Common stock, 75 million shares authorized, 22.1 million shares issued and outstanding $.01 par value.................................... 222 - - 222 Additional paid-in capital.......................... 452,600 - - 452,600 Retained earnings................................... 221,778 15,754 (A) - 237,532 Treasury stock, 6.4 million shares.................. (126,906) - - (126,906) ----------- ---------- ----------- ----------- Total shareholders' equity........................ 547,694 15,754 - 563,448 ----------- ---------- ----------- ----------- $ 1,060,533 $ (89,180) $ (40,727) $ 930,626 =========== ========== =========== ===========

Pro Forma Adjustments ------------------------------------------- Sale of Sale of Full-Service Historical Residence Inns Hotel Leases Other Pro Forma REVENUES Hotels Rooms............................................... $ 242,970 $ (17,504) (F) $ (33,596) (I) $ - $ 191,870 Food and beverage................................... 28,177 - (17,832) (I) - 10,345 Other............................................... 17,497 (767) (F) (7,558) (I) - 9,172 ---------- --------- ---------- --------- --------- Total hotel revenues.............................. 288,644 (18,271) (58,986) - 211,387 ---------- --------- ---------- --------- --------- Senior living Routine............................................. 115,715 - - - 115,715 Ancillary........................................... 10,690 - - - 10,690 ---------- --------- ---------- --------- --------- Total senior living revenues...................... 126,405 - - - 126,405 ---------- --------- ---------- --------- --------- Equity in losses of affiliates......................... (394) - - - (394) ---------- --------- ---------- --------- --------- Total revenues...................................... 414,655 (18,271) (58,986) - 337,398 ---------- --------- ---------- --------- --------- OPERATING COSTS AND EXPENSES Hotels Property-level operating costs and expenses Rooms............................................. 51,172 (3,579) (F) (6,627) (I) - 40,966 Food and beverage................................. 20,514 - (11,201) (I) - 9,313 Other............................................. 93,477 (5,992) (F) (13,829) (I) - 73,656 Other operating costs and expenses Management fees................................... 23,626 (1,636) (F) (2,166) (I) - 19,824 Lease expense..................................... 82,488 - (23,869) (I) - 58,619 Depreciation and amortization..................... 3,239 (1,973) (F) - - 1,266 Other............................................. 1,773 (35) (F) - (94) (J) 1,644 ---------- --------- ---------- --------- --------- Total hotel operating costs and expenses........ 276,289 (13,215) (57,692) (94) 205,288 ---------- --------- ---------- --------- --------- Senior living Property-level operating costs and expenses Routine........................................... 73,542 - - - 73,542 Ancillary......................................... 6,064 - - - 6,064 Other operating costs and expenses Depreciation and amortization..................... 11,090 - - - 11,090 Management fees................................... 8,229 - - - 8,229 Property taxes and other.......................... 4,034 - - - 4,034 ---------- --------- ---------- --------- --------- Total senior living operating costs and expenses 102,959 - - - 102,959 ---------- --------- ---------- --------- --------- Other operating costs and expenses..................... 149 - - (51) (J) 98 ---------- --------- ---------- --------- --------- Total operating costs and expenses................ 379,397 (13,215) (57,692) (145) 308,345 ---------- --------- ---------- --------- --------- OPERATING PROFIT....................................... 35,258 (5,056) (1,294) 145 29,053 Gain on sale of full-service hotel leases.............. 204,459 - - (204,459) (I) - Corporate expenses..................................... (13,254) - - 6,105 (K) (6,548) 601 (J) Interest expense....................................... (13,467) 2,090 (F) 47 (I) - (11,083) 247 (G) Interest income........................................ 5,041 - - - 5,041 ---------- --------- ---------- --------- --------- INCOME BEFORE INCOME TAXES............................. 218,037 (2,719) (1,247) (197,608) 16,463 Provision for income taxes............................. (87,215) 1,088 (H) 499 (H) 79,043 (H) (6,585) ---------- --------- ---------- --------- --------- NET INCOME............................................. $ 130,822 $ (1,631) $ (748) $(118,565) $ 9,878 ========== ========= ========== ========= ========= BASIC EARNINGS PER COMMON SHARE........................ $ 8.49 $ .64 ========== ========= DILUTED EARNINGS PER COMMON SHARE...................... $ 8.10 $ .61 ========== ========= BASIC WEIGHTED AVERAGE SHARES OUTSTANDING.............. 15,411 15,411 ========== ========= DILUTED WEIGHTED AVERAGE SHARES OUTSTANDING............ 16,158 16,158 ========== =========

Pro Forma Adjustments --------------------- Sale of Sale of Full-Service Historical Residence Inns Hotel Leases Other Pro Forma ---------- -------------- ------------- ----- --------- REVENUES Hotels Rooms............................................... $ 2,936,069 $ (37,595) (F) $ (2,542,411) (I) $ (377) (L) $ 355,686 Food and beverage................................... 1,288,117 -- (1,267,710) (I) -- 20,407 Other............................................... 326,128 (1,770) (F) (304,949) (I) (16) (L) 19,393 ----------- --------- ------------ --------- --------- Total hotel revenues.............................. 4,550,314 (39,365) (4,115,070) (393) 395,486 ----------- --------- ------------ --------- --------- Senior living Routine............................................. 239,065 -- -- -- 239,065 Ancillary........................................... 22,821 -- -- -- 22,821 ----------- --------- ------------ --------- --------- Total senior living revenues...................... 261,886 -- -- -- 261,886 ----------- --------- ------------ --------- --------- Other revenues......................................... 4,125 -- -- (4,125) (M) -- Equity in earnings of affiliates....................... 832 -- -- -- 832 ----------- --------- ------------ --------- --------- Total revenues...................................... 4,817,157 (39,365) (4,115,070) (4,518) 658,204 ----------- --------- ------------ --------- --------- OPERATING COSTS AND EXPENSES Hotels Property-level operating costs and expenses Rooms............................................. 684,254 (7,846) (F) (598,071) (I) (121) (L) 78,216 Food and beverage................................. 948,259 -- (929,618) (I) -- 18,641 Other............................................. 1,141,005 (12,349) (F) (992,313) (I) (154) (L) 136,189 Other operating costs and expenses Management fees................................... 286,616 (3,500) (F) (244,247) (I) (23) (L) 38,846 Lease expense..................................... 1,404,305 -- (1,297,877) (I) -- 106,428 Depreciation and amortization..................... 5,462 (3,906) (F) -- 12 (L) 1,568 Other............................................. 3,626 -- -- (623) (J) 3,003 ----------- --------- ------------ --------- --------- Total hotel operating costs and expenses........ 4,473,527 (27,601) (4,062,126) (909) 382,891 ----------- --------- ------------ --------- --------- Senior living Property-level operating costs and expenses Routine........................................... 153,049 -- -- -- 153,049 Ancillary......................................... 14,493 -- -- -- 14,493 Other operating costs and expenses Depreciation and amortization..................... 24,083 -- -- -- 24,083 Management fees................................... 15,658 -- -- -- 15,658 Property taxes and other.......................... 9,263 -- -- -- 9,263 ----------- --------- ------------ --------- --------- Total senior living operating costs and expenses 216,546 -- -- -- 216,546 ----------- --------- ------------ --------- --------- Other operating costs and expenses..................... 3,733 -- -- (2,738) (M) 736 ....................................................... (259) (J) ----------- --------- ------------ --------- --------- Total operating costs and expenses................ 4,693,806 (27,601) (4,062,126) (3,906) 600,173 ----------- --------- ------------ --------- --------- OPERATING PROFIT....................................... 123,351 (11,764) (52,944) (612) 58,031 Minority interest expense.............................. (1,310) 1,310 (F) -- -- -- Corporate expenses..................................... (16,785) -- -- 2,271 (J) (14,514) Interest expense....................................... (33,347) 4,604 (F) 4,215 (I) -- (24,528) Interest income........................................ 4,237 -- -- -- 4,237 ----------- --------- ------------ --------- --------- INCOME BEFORE INCOME TAXES AND EXTRAORDINARY ITEM.................................. 76,146 (5,850) (48,729) 1,659 23,226 Provision for income taxes............................. (31,601) 2,399 (H) 20,307 (H) (680) (H) (9,575) ----------- --------- ------------ --------- --------- INCOME BEFORE EXTRAORDINARY ITEM....................... $ 44,545 $ (3,451) $ (28,422) $ 979 $ 13,651 =========== ========= ============ ========= ========= BASIC EARNINGS BEFORE EXTRAORDINARY ITEM PER COMMON SHARE.................................... $ 2.76 $ .85 =========== ========= DILUTED EARNINGS BEFORE EXTRAORDINARY ITEM PER COMMON SHARE.................................... $ 2.67 $ .82 =========== ========= BASIC WEIGHTED AVERAGE SHARES OUTSTANDING......................................... 16,151 16,151 =========== ========= DILUTED WEIGHTED AVERAGE SHARES OUTSTANDING......................................... 16,665 16,665 =========== =========

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