PHOENIX, Sept. 5 /PRNewswire-FirstCall/ -- InnSuites Hospitality Trust (AMEX:IHT) Highlights: * Operating income increased $637,000, or 120%, to $1.2 million for the
first six months of fiscal year 2007. * Net income attributable to Shares of Beneficial Interest was $345,000,
or $0.04 per basic share for the six months ended July 31, 2006. * The Trust's operations, including occupancy and average daily rate,
continue to trend upwards.
InnSuites Hospitality Trust reported operating income of $1.2 million for the six months ended July 31, 2006, an improvement of $637,000 from the prior year period operating income of $532,000. 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 an operating loss of $(106,000) for the three months ended July 31, 2006, an improvement of $271,000 from the prior year period loss of $(377,000), further reflecting the continued improvement in the operations of the Trust's five core suite hotels.
The Trust reported net income attributable to Shares of Beneficial Interest of $345,000, or $0.04 per basic and $0.02 per diluted share, for the six months ended July 31, 2006, a decrease of $707,000 from $1.1 million, or $0.12 per basic and $0.10 per diluted share, for the prior year period. The prior year period included a gain on the disposition of the Phoenix, Arizona hotel property of $1.8 million, $1.2 million of which was attributable to Shares of Beneficial Interest.
The Trust reported a net loss attributable to Shares of Beneficial Interest of $(341,000), or $(0.04) per basic and diluted share, for the three months ended July 31, 2006, a decrease of $999,000 from net income of $658,000, or $0.07 per basic and diluted share, for the prior year period. The prior year period included a gain on the disposition of the Phoenix, Arizona hotel property of $1.8 million, $1.2 million of which was attributable to Shares of Beneficial Interest.
The Trust reported earnings before minority interest, interest, taxes, depreciation and amortization ("Adjusted EBIDTA") of $2.2 million for the six months ended July 31, 2006, compared to $3.4 million in the prior year period. The prior year period included a gain on the disposition of the Phoenix, Arizona hotel property of $1.8 million. 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 Shares of Beneficial Interest follows: For the six months ended
July 31, July 31,
2006 2005 Net income attributable to Shares of
Beneficial Interest $344,995 $1,052,319 Add back:
Minority interest (145,243) 239,993
Non-cash depreciation 1,038,880 1,043,832
Interest expense 892,527 1,005,870
Income tax expense 77,650 82,000
Less:
Interest income (1,246) (873)
Adjusted EBITDA $2,207,563 $3,423,141
For the six and three month periods ended July 31, 2006, the Trust reported revenue of $11.4 million and $4.9 million, respectively, both of which were consistent with the prior year period. The Trust's revenues for the six and three month periods ended July 31, 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 benefit from improved economic and industry conditions, with occupancy and average daily rate at the Trust properties increasing 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 also 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.innsuitestrust.com/ Web site: http://www.innsuites.com/
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