PHOENIX, June 2 /PRNewswire-FirstCall/ -- InnSuites Hospitality Trust (AMEX:IHT) Highlights: * Diluted earnings per share for the first fiscal quarter doubled to
$0.06 from $0.03 in the prior year
* Net income attributable to Shares of Beneficial Interest increased
$281,000 over the prior year period, reflecting improved property
operating results. * The Trust continues to benefit from strengthening industry conditions
with increased occupancy and improved operations, and has begun the
process of converting two suite hotels to individual condo ownership.
InnSuites Hospitality Trust reported operating income of $1.3 million for the first quarter ended April 30, 2006, an improvement of $366,000 from the prior year period operating income of $909,000. This increase reflects the continued improvement in the operations of the Trust's five core suite hotels and improved management and licensing fee revenues.
The Trust reported net income attributable to Shares of Beneficial Interest of $686,000, or $0.07 per basic and $0.06 per diluted share, for the first quarter ended April 30, 2006, an improvement of $281,000 from $404,000, or $0.05 per basic and $0.03 diluted share, for the prior year period.
The Trust reported earnings before minority interest, interest, taxes, depreciation and amortization ("Adjusted EBIDTA") of $1.8 million for the three months ended April 30, 2006, compared to $1.4 million in the prior year period. Adjusted EBITDA is a non-GAAP financial measure that management believes provides meaningful insight into the Trust's operating performance. A reconciliation of Adjusted EBITDA to net income attributable to shareholders of beneficial interest follows: For the three months ended
April 30, 2006 April 30, 2005 Net income attributable to
shareholders of
beneficial interest $685,510 $404,301
Add back:
Minority interest 70,198 (29,953)
Non-cash depreciation 514,351 516,465
Interest expense 441,779 503,169
Income tax expense 78,500 32,000
Less:
Interest income (1,213) (472)
Adjusted EBITDA $1,789,125 $1,425,510
The Trust reported revenue of $6.5 million for the first quarter ended April 30, 2006, compared to $6.6 million for the prior year period. The Trust's revenues for the three months ended April 30, 2006 reflect the absence of the Trust's Phoenix, Arizona property, which was sold during the second quarter of fiscal year 2006. This was offset by improved occupancy, increased management and licensing fees, and payroll reimbursements received in connection with the management agreements.
The Trust's hotel operations continue to improve as economic and industry conditions become more favorable, with occupancy at the Trust properties increasing 4.9% over the prior year period. In addition, the Trust continues to benefit from management and trademark licensing agreements acquired during fiscal year 2005. The Trust is moving forward with the conversion of two of its properties to individual condo ownership.
Your Suite Choice(R)-Value Concept InnSuites Hospitality Trust is a mid-market studio and two-room suite hospitality trust owning 5 moderate service and full service suite hotels containing 843 hotel suites and managing and/or licensing 11 hotels with 1,692 suites located in Arizona, New Mexico, Texas and Southern California. For reservations, call 1-888-INNSUITES, or visit http://www.innsuites.com/. For investor information, visit http://www.innsuitestrust.com/.
Certain matters within this press release may be discussed using forward- looking language as specified in the 1995 Private Securities Litigation Reform Act and InnSuites Hospitality Trust intends that such forward-looking statements be subject to the safe-harbor created thereby. Such forward- looking statements include, but are not limited to: (i) expectations of growth in the financial and operating results of the Trust, (ii) expectations of reductions in costs incurred by the Trust, (iii) expectations that the travel and hospitality industries will continue to rebound in the near future, and (iv) expectations of the benefits of condo-hotel conversions. InnSuites Hospitality Trust cautions that these statements may involve known and unknown risks, uncertainties and other factors that may cause the actual results or performance to differ from those projected in the forward-looking statements contained herein. Such risks include, but are not limited to: a) fluctuations in hotel occupancy rates, b) changes in room rental rates which may be charged by InnSuites Hotels in response to market rental rate changes or otherwise, c) seasonality of our business, d) interest rate fluctuations, e) changes in governmental regulations, including federal income tax laws and regulations, f) competition, g) any changes in the Trust's financial condition or operating results due to acquisitions or dispositions of hotel properties, h) insufficient resources to pursue our current growth strategy, i) concentration of our investments in our InnSuites Hotels(R) brand, j) loss of franchise contracts, k) real estate and hospitality market conditions, l) hospitality industry factors, m) our ability to meet present and future debt obligations, n) terrorist attacks or other acts of war, o) outbreaks of communicable diseases, p) natural disasters, q) loss of key personnel, r) market demand or lack of demand for condo-hotel conversions, s) local or national economic and business conditions, including, without limitation, conditions which may affect public securities markets generally, the hospitality industry or the markets in which the Trust operates or will operate, and t) uncertainties the Trust might encounter in changing from a REIT to a tax-paying entity. From time to time, these and other risks are discussed in the Trust's Annual Report on Form 10-K and other filings with the Securities and Exchange Commission. DATASOURCE: InnSuites Hospitality Trust CONTACT: Marc Berg, Executive Vice President of InnSuites Hospitality Trust, +1-602-944-1500 , Web site: http://www.innsuites.com/ http://www.innsuitestrust.com/
|