PHOENIX, Dec. 10 /PRNewswire-FirstCall/ -- InnSuites Hospitality Trust (AMEX:IHT)
Highlights:
-- Net loss attributable to Shares of Beneficial Interest was
$1.1 million or $(0.52) per diluted share for the first nine months
compared to a loss of $2.7 million or $(1.25) per diluted share for
the prior nine month period.
-- Recurring FFO for the first nine months was $76,000 or $0.04 per basic
share, compared to $353,000 or $0.17 per basic share in the prior nine
month period.
InnSuites Hospitality Trust today reported net loss attributable to Shares of Beneficial Interest for the first nine months ended October 31, 2002 of $1.1 million, or $(0.52) per diluted share, compared to a net loss of $2.7 million, or $(1.25) per diluted share, for the prior nine month period. Results for the prior fiscal year's first nine months ended October 31, 2001 included a $577,000 prepayment penalty related to the refinancing of the Ontario property and a charge of $1.6 million related to the acquisition of the InnSuites Hotels Inc., the Trust's lessee (Lessee). The prepayment penalty of $577,000 included $279,000 attributable to Shares of Beneficial Interest and $298,000 allocated to minority interest. The $1.6 million charge related to the acquisition of the Lessee is attributable to Shares of Beneficial Interest. Excluding the effects of these one-time charges, the Trust's net loss attributable entirely to Shares of Beneficial Interest for the nine months ended October 31, 2001 would have been $791,000 or $(0.37) per diluted share.
The Trust had a net loss attributable to Shares of Beneficial Interest of $978,000 or $(0.49) per diluted share for the third quarter of fiscal year 2003 compared to a loss of $781,000 or $(0.36) per diluted share for the same period in fiscal year 2002.
The Trust's recurring Funds From Operations (FFO) was $76,000 or $0.04 per basic share for the first nine months of fiscal year 2003. The recurring FFO was a decrease from the prior year period's recurring FFO of $353,000, or $0.17 per basic share. The effect of a $733,000 or 3% decrease in total revenue primarily caused by a soft economic environment and restrained travel was largely offset by cost-cutting programs.
Positioned for the Future
The travel and hospitality industries continue to be affected from the soft economic environment. The Trust's cost control programs have largely mitigated the effects of lower revenues. The Trust has also taken advantage of the availability of favorable interest rates and expects to continue refinancing its properties at favorable rates to reduce interest expense. The Trust expects occupancy and room rates to remain below the prior year during the final quarter of fiscal year 2003 with potential for improvement in early 2003.
Your Suite Choice(R) - Value Concept
InnSuites Hospitality Trust is a mid-market studio and two-room suite hospitality real estate hotel investment trust with 11 moderate service and full service hotels containing 1,672 hotel suites located in Arizona, New Mexico and Southern California, and holds an option for a 168 suite Texas InnSuites Hotel. InnSuites Hotels distinguishes itself by offering a choice of Studio InnSuites, two-room Executive/Family Suites, and Presidential Jacuzzi Suites under its program, Your Suite Choice(R). InnSuites Hotels create extra value for its guests with complimentary InnSuites Extras(SM), including healthy fruit and cereal breakfast buffet, afternoon social hour, HBO, local phone calls, refrigerator with bottled water, microwave, coffeemaker with coffee and tea, morning newspaper, and more. For reservations, call 1-888-INNSUITES, or visit www.innsuites.com . For investor information, visit www.innsuitestrust.com .
Certain statements in this press release, including statements containing the phrases believes, intends, expects, anticipates, predicted, will be, should be, looking ahead or similar words, constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. The Trust intends that such forward-looking statements be subject to the safe harbors created by such Acts. Those forward-looking statements include statements regarding the intent, belief or current expectations of the Trust, its Trustees or its officers in respect of (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 rebound in the near future; (iv) the Trust's financing plans; (v) the Trust's position regarding investments, acquisitions, developments, financings, conflicts of interest and other matters; and (vi) trends affecting the Trust's or any of its hotel's financial condition or results of operations.
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