Records $0.18 Earnings Per Share for 1st Half of 2001
SPRINGFIELD, Mo.-- Aug. 8, 2001--John Q. Hammons Hotels, Inc. (AMEX:JQH)
today reported basic earnings per share in the 2001 second quarter of $0.13,
compared to basic earnings per share of $0.16 in the 2000 second quarter.
In the first half of 2001, basic earnings per share for the Company
were $0.18, compared to $0.02 for the same period in 2000.
Total earnings before interest expense, taxes, depreciation, and amortization
(EBITDA) were $34.6 million for the second quarter, down 2.5% compared
to the 2000 second quarter EBITDA of $35.5 million, reflecting the impact
of a weakening economy.
In spite of the weaker economy, the Company continued to surpass the
performance of the hotel industry. For example, the Company's average room
rate for the 2001 second quarter was $101.39, up 3.0% compared to the 2000
second quarter average room rate of $98.40. In comparison, the average
room rate for the hotel industry was $86.21 in the 2001 second quarter,
up 1.8% from $84.67 in the 2000 second quarter. The Company's occupancy
for the 2001 second quarter was 67.3%, down 1.0 percentage point from the
2000 second quarter occupancy rate of 68.3%. Occupancy for the hotel industry
was 64.7% for the 2001 second quarter, down 3.0 percentage points from
the 2000 second quarter. The Company's Revenue Per Available Room (RevPAR)
was $68.22 for the 2001 second quarter, up 1.5% from $67.20 in the 2000
second quarter. RevPAR for the hotel industry was $55.81 in the 2001 second
quarter, down 2.6% from $57.28 in the 2000 second quarter. RevPAR for the
Company was 22.2% above the hotel industry average during the 2001 second
quarter.
John Q. Hammons, Chairman and Chief Executive Officer, stated: "The
Company's strong performance in the midst of a weakening economy this quarter
was encouraging. We will continue to pursue improved hotel operating results
as we move forward."
Although the Company continues its moratorium on developing new hotels,
Mr. Hammons has personally developed three projects that opened during
2000 and the first half of 2001: an Embassy Suites Hotel in Lincoln, Nebraska
(opened May 2000); a Marriott Courtyard in Springfield, Missouri (opened
April 2000); and a Renaissance Hotel in Richardson, Texas (opened May 2001).
In addition, Mr. Hammons has two hotels under development which will
open in the second half of 2001: an Embassy Suites Hotel in Nashville,
Tennessee (Franklin, opening August 2001); and a Residence Inn in Springfield,
Missouri (opening September 2001). The Company will manage all of these
properties.
JOHN Q. HAMMONS HOTELS, INC.
(Amounts in thousands except earnings per share
and operating data)
Three Months Ended Six Months Ended
June 29, June 30, June 29, June
30,
2001 2000
2001 2000
------- ------- -------
-------
Total Revenue
$ 116,950 $ 114,498 $ 232,259 $ 218,622
EBITDA
$ 34,568 $ 35,505 $ 67,601 $
63,744
EBITDA Margin
(Percentage of
Total Revenue)
29.6% 31.0%
29.1% 29.2%
Net Income
$ 650 $ 846
$ 917 $ 88
Earnings Per Share --
Basic and Diluted:
Basic Earnings per share $ 0.13
$ 0.16 $ 0.18 $
0.02
Weighted Average
Shares Outstanding
5,070,073 5,459,790 5,067,318 5,492,775
Diluted Earnings Per
Share Allocable to
the Company
$ 0.12 $ 0.16 $
0.17 $ 0.02
Diluted Weighted Average
Shares Outstanding
5,284,969 5,459,790 5,282,214 5,492,775
Hotels Operating Data
Mature Hotels:
Occupancy
67.0% 69.1%
65.3% 66.0%
Average Room Rate
$ 100.67 $ 96.74 $ 101.93
$ 96.51
RevPar (Room Revenue per
available
room) $ 67.43 $ 66.89 $
66.52 $ 63.74
New Hotels(a):
Occupancy
73.1% 62.8%
70.3% 58.9%
Average Room Rate
$ 114.29 $ 110.24 $ 113.03 $
113.19
RevPar (Room Revenue per
available
room) $ 83.59 $ 69.20 $
79.42 $ 66.69
Total Owned Hotels:
Occupancy
67.3% 68.3%
65.5% 65.2%
Average Room Rate
$ 101.39 $ 98.40 $ 102.50
$ 98.39
RevPar (Room Revenue per
available
room) $ 68.22 $ 67.20 $
67.15 $ 64.11
June 29,
Dec. 29,
2001
2000
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Selected Balance Sheet Data
Current Assets
$ 82,312
$ 67,208
Total Assets
$ 920,233 $
920,884
Current Liabilities
Excluding Debt
$ 52,012
$ 48,387
Total Debt Including
Current Portion
$ 827,528 $
836,707
Total Cash and Equivalents
and Marketable Securities
$ 62,657
$ 49,171
(a) New Hotels include: Oklahoma City Renaissance
and North Charleston Embassy Suites |
The Company currently owns and manages 54 hotels, including seven managed
hotels, with 13,325 rooms in 21 states. The new hotels under development
by Mr. Hammons personally will add 386 suites and rooms, an increase of
2.9% to the Company's portfolio.
Certain matters discussed within this press release are forward-looking
statements within the meaning of the Private Securities Litigation Reform
Act of 1995.
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