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InnSuites Hospitality Trust (IHT) Reports Improved Fiscal 2005 Year-End Earnings of $0.10 Per Share |
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InnSuites Hospitality Trust reported net income attributable to Shares of Beneficial Interest of $240,000, or $0.10 per basic and diluted share, for the fiscal year ended January 31, 2005, an improvement of $2.8 million from the loss of $(2.6 million), or $(1.27) per basic and diluted share, for the prior fiscal year. |
InnSuites Hospitality Trust (AMEX:IHT) Highlights:
• Net income attributable to Shares of Beneficial Interest increased $2.8 million over the prior year, reflecting the positive effects of the disposal of underperforming assets and the improvement of operating results for its remaining core hotels. Fiscal year 2005 net income per basic and diluted share increased to $0.10.
• The Trust disposed of certain hotel properties for substantial gains and acquired its management and licensing agreements to streamline its operations.
• The Trust completed its plan to regain compliance with the listing standards of the American Stock Exchange and increased its stockholder's equity to $6.3 million.
InnSuites Hospitality Trust reported net income attributable to Shares of Beneficial Interest of $240,000, or $0.10 per basic and diluted share, for the fiscal year ended January 31, 2005, an improvement of $2.8 million from the loss of $(2.6 million), or $(1.27) per basic and diluted share, for the prior fiscal year.
The Trust had a net loss attributable to Shares of Beneficial Interest of $(476,000), or $(0.17) per basic and diluted share, for the fourth fiscal quarter of fiscal year 2005 ended January 31, 2005, which was an improvement of $306,000 from the same period in fiscal year 2004, which was a loss of $(782,000), or $(0.38) per basic and diluted share.
The Trust reported revenue of $22.9 million for the fiscal year ended January 31, 2005, a decrease of 6% from $24.2 million for the prior year. The Trust's revenues decreased due to the sales of certain of the Trust's property during the latter part of fiscal year 2004 and beginning of fiscal year 2005. This decrease was partially offset by fee revenue and payroll reimbursements recognized by the Trust related to management and licensing agreements acquired by the Trust during the second quarter of fiscal year 2005.
During the first quarter of fiscal year 2005, the Trust sold its Tempe, AZ property and used the proceeds to reduce debt by $6.8 million and sold its San Diego, CA property for $9.7 million, recognizing a gain of $5.1 million on the sale, $2.9 million of which was allocated to the Trust.
During the second quarter of fiscal year 2005, the Trust acquired the management contracts and licensing agreements under which management and licensing services were provided to the Trust's hotels, which is expected to add a new source of growth and profit to the Trust. The Trust manages its six hotels, three related party hotels and one unrelated hotel. The Trust also licenses and provides registered and unregistered InnSuites trademarks and tradenames to its six hotels, three related party hotels and two unrelated hotels.
As of January 31, 2005, the Trust has total shareholders' equity of $6.3 million, representing a $7.8 million improvement from fiscal year 2004, permitting the Trust to regain compliance with AMEX continued listing standards.
Positioned for Full Service Hotel Operations
The Trust has begun to recover from the general economic slowdown and, specifically, the difficulties in the travel and hospitality industries. The Trust has continued to tighten its cost controls and has disposed of underperforming assets, all of which the Trust believes have helped to mitigate the impact of the economic slowdown and positioned the Trust to benefit from the early stages of recovery in the travel industry. Although the Trust has benefited from the pickup in the economy during fiscal year 2005, it continues to take aggressive steps to cut costs and increase sales.
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