When I was a boy following my beloved Boston Red Sox, legendary announcer Kurt Gowdy often referred to a well-executed double play as a 'room service' play. I'm still not certain where the term came from, but it described unusual infield prowess.
Hilton Hotels (NYSE: HLT) definitely delivered "room service" quarterly results on Wednesday. In the process, it reported net income nearly double the year-ago figure, along with a significant increase in EBITDA (earnings before interest, taxes, depreciation and amortization), and a surge in revenues from leased hotels.
Hilton's income for the quarter reached $207 million, compared with $105 million in the same quarter of 2005. Its diluted per-share earnings increased to $0.50, from $0.26 the prior year, a jump of 92%. Its EBITDA was up 78% to $485 million.
Revenue for Hilton's final 2006 quarter grew to $2.23 billion, up 106% from the $1.08 billion the prior year. It's owned hotels contributed $683 million in revenues for the quarter, while the leased hotels weighed in with another $731 million, versus just $24 million in the final quarter of 2005. Timeshare and other income was $161 million, while other revenue from managed and franchised properties grew fully 55% to $475 million.
External Source - For the complete article click here
Source - Motley Fool
Logos, product and company names mentioned are the property of their respective owners.
