Net Loss of $7,061; Total Revenues Down 2.1%
Compared to Prior Year
Hotel Operating Statistics
|SPRINGFIELD, MO., February 18, 2004 ----
John Q. Hammons Hotels, Inc. (AMEX: JQH) today reported results for the
year-end and fourth quarter 2003.
Basic loss per share for the twelve months ended January 2, 2004 was ($1.39), compared to a loss per share of ($0.54) for the twelve months ended January 3, 2003. Net loss for the twelve months ended January 2, 2004 was $7.1 million, compared to a net loss of $2.8 million for the same period in 2002. The 2003 results included two items, which, after giving effect to minority interest, had an impact of approximately $6.2 million on the Company’s net loss. One of the items was the recognition of a $9.7 million impairment on one of our properties due to the decline of the property’s fair value. The other item was related to the allocation of partnership losses to the limited partner’s minority interest, which are restricted to the limited partner’s net contribution; therefore, the minority interest account cannot be reduced below zero. As a result, the allocations of the partnership losses to the minority interest were limited to $5.9 million rather than the expected $9.7 million based on their approximate 76% ownership interest.
Total revenues for 2003 were $431.2 million, a decrease of 2.1% compared to 2002. We produced EBITDA for 2003 of $108.8 million ($118.5 million before the $9.7 million item related to asset impairment), compared to $121.7 million in the 2002 period, which included 53 weeks, rather than 52 weeks in the 2003 period (See attached table for reconciliation of net income to EBITDA and for the definition of EBITDA).
Revenue Per Available Room (RevPAR) was $63.19 for 2003, up from prior year’s level of $62.68, while the upscale sector of the industry’s RevPAR was down 0.8% as reported by Smith Travel Research.
Fourth Quarter Results
Basic loss per share for the three months ended January 2, 2004 was ($1.47), compared to a loss per share of ($0.18) for the same period in 2002. Net loss was $7.5 million for the 2003 quarter, compared to a loss of $0.9 million for the 2002 quarter, reflecting the impact of the special items discussed above.
EBITDA was $16.2 million for the 2003 quarter, down $13.3 million compared to the 2002 fourth quarter EBITDA of $29.5 million, reflecting the $9.7 million item related to asset impairment in 2003 (See attached table for reconciliation of net income to EBITDA and for the definition of EBITDA).
Total revenues for the 2003 fourth quarter were $103.6 million, compared to $111.9 million for the 2002 quarter. Our Revenue Per Available Room (RevPAR) was $57.15 for the 2003 fourth quarter, up compared to the prior year’s level of $56.62.
“Our operations have continued to remain stable during the industry’s downturn. As lodging demand increases, particularly in the group segments, we should benefit due to our extensive meeting space facilities,” stated Mr. John Q. Hammons, Chairman and Chief Executive Officer.
Financing and Investing Activities
During 2003, we retired a $6.3 million mortgage (Springdale Hampton Inn), set to mature in the fourth quarter of 2003, as well as $5.2 million and $6.6 million notes (Denver Airport Holiday Inn and Ft. Collins Holiday Inn, respectively), bringing total debt reduction for 2003 to over $25 million, including scheduled principal amortization. Our current portion of long-term debt ($7.4 million) is attributable to scheduled principal amortization on various individual hotel mortgages.
We forecast that the industry should recover throughout 2004, generating RevPAR above 2003 levels. This recovery should enhance our cash generation and produce favorable results as we focus on operational efficiencies.
Although we are not developing new hotels, Mr. Hammons personally has
numerous projects in various stages of development, which will be managed
by the public Company upon completion, including properties in St. Charles,
Missouri; Junction City, Kansas; Frisco, Texas; Albuquerque, New Mexico
and North Charleston, South Carolina.
John Q. Hammons Hotels, Inc. is a leading independent owner and manager of affordable upscale, full service hotels located primarily in key secondary markets. We own 47 hotels located in 20 states, containing 11,630 guest rooms or suites, and manage 13 additional hotels located in seven states, containing 3,094 guest rooms or suites.
This press release contains “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934, regarding, among other things, our operations outlook, business strategy, prospects and financial position.
Chief Financial Officer
John Q. Hammons Hotels, Inc.
|Also See:||John Q. Hammons Hotels, Inc. Reports Net loss for Year Ending 2002 of $2.8 million, Compared to a Loss of $3.1 million In 2001 / Feb 2003|
|John Q. Hammons Hotels Reports Full Year Loss of ($0.61) Per Share; More than Half of Loss Attributed to Defective Windows at Nine Hotels / Hotel Operating Data / Feb 2002|