Amerihost Properties Inc. Announces Second Quarter Financial Results; EBITDAR Up 30%; Strong AmeriHost Inn Brand Performance.DES PLAINES Des Plaines, city, United States Des Plaines (dĕs plānz), city (1990 pop. 53,223), Cook co., NE Ill., a suburb of Chicago on the Des Plaines River; inc. 1925. Among its manufactures are chemicals and electronic equipment. , Ill.--(BUSINESS WIRE)--Aug. 4, 1999-- Amerihost Properties, Inc. (Nasdaq/NM: HOST) today announced its results for the three months ended June June: see month. 30, 1999. Net income for the second quarter totaled $797,709, or $0.13 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, compared to a net loss of ($130,368), after an extraordinary item charge, or ($0.02) per diluted share in the second quarter of 1998. Earnings Before Interest, Taxes, Depreciation, Amortization and Rents ("EBITDAR Earnings Before Interest, Taxes, Depreciation, Amortization, and Restructuring Costs - EBITDAR An indicator of a company's financial performance calculated as: = Revenue - Expenses (excluding tax, interest, depreciation, amortization, and restructuring costs) ") for the second quarter of 1999 increased 30.3% to $5.4 million, from $4.1 million in the second quarter of 1998. Revenues totaled $19.1 million compared to $18.9 million in the second quarter of 1998. The extraordinary item charge in 1998 was $332,738, net of tax, and related to the write-off Write-Off A reduction in the value of an asset or earnings by the amount of an expense or loss. Companies are able to write off certain expenses that are required to run the business, or have been incurred in the operation of the business and detract from retained revenues. of deferred loan costs associated with the sale of hotels. For the six-month period ended June 30, 1999, the net loss totaled ($967,282), or ($0.16) per diluted share, compared to a net loss of ($1.3) million, or ($0.21) per diluted share in the six-month period ended June 30, 1998. EBITDAR for the six-month period ended June 30, 1999 increased 30% to $6.7 million, from $5.2 million. Revenues totaled $33.8 million compared to $32.9 million in the six-month period ended June 30, 1998. Same room RevPAR RevPAR A performance metric in the hotel industry which stands for "revenue per available room." RevPAR is typically calculated by multiplying a hotel's average daily room rate (ADR) by its occupancy rate. for the second quarter ended June 30, 1999 (which includes wholly-owned, minority-owned and managed-only AmeriHost Inn(R) hotels) was up 5.3% to $35.42, compared to the same period last year. This same room RevPAR increase is the result of a relatively flat growth in occupancy to 61.9%, and a 4.6% increase in average daily rate to $57.22. These results relate to the 67 AmeriHost Inn(R) hotels that were open at least 13 months during the three-month period ended June 30, 1999. Same room RevPAR for the six-month period ended June 30, 1999 was up 7.0% to $31.82, compared to the same period last year. This same room RevPAR increase is the result of a 4.5% growth in occupancy to 56.7%, and a 4.3% increase in average daily rate to $56.12. These results relate to the 69 AmeriHost Inn(R) hotels that were open at least 13 months during the six-month period ended June 30, 1999. Amerihost Chairman, President & Chief Executive Officer, Michael P. Holtz, commented, "We are very pleased with the performance of the AmeriHost Inn(R) hotel brand. Revenues from our consolidated AmeriHost Inn(R) hotels increased 71.7% to $13.2 million in the second quarter of 1999, compared to $7.7 million in the second quarter of 1998. The operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. from these hotels also increased 30.1% to $1.9 million in 1999, from $1.5 million in 1998." On March 3, 1999, Amerihost announced that the AmeriHost Inn(R) hotel brand is available for franchising. "Since our announcement in March, we have sold five AmeriHost Inn(R) franchises," continued Holtz. "To date, we are able to sell AmeriHost Inn(R) franchises in all 50 states, and have assembled as·sem·ble v. as·sem·bled, as·sem·bling, as·sem·bles v.tr. 1. To bring or call together into a group or whole: assembled the jury. 2. a franchise sales team consisting of seven well-qualified team members with an impressive franchise sales record. The franchising effort should enable Amerihost to grow the AmeriHost Inn(R) hotel brand more aggressively and improve our balance sheet and income statement with fee-based income," he said. As of June 30, 1999, there were 77 AmeriHost Inn(R) hotels open and operating. On July 1, 1999, Amerihost sold two AmeriHost Inn(R) hotels and took back a franchise agreement with respect to those hotels. The gain of approximately $1.2 million, pre-tax, from the sale of these AmeriHost Inn(R) hotels will be realized in the third quarter. At June 30, 1999, Amerihost had a controlling ownership or leasehold An estate, interest, in real property held under a rental agreement by which the owner gives another the right to occupy or use land for a period of time. leasehold n. interest in 65 of these AmeriHost Inn(R) hotels.
SUMMARY OF FINANCIAL HIGHLIGHTS (UNAUDITED)
Three Months Six Months
Ended Ended
6/30/99 6/30/98 6/30/99 6/30/98
--------- --------- --------- ---------
Revenues $19,088,251 $18,892,934 $33,807,198 $32,930,643
========== ========== ========== ==========
EBITDAR $5,407,066 $4,149,030 $6,740,858 $5,195,030
========= ========= ========= =========
Net income (loss) $797,709 ($130,368) ($967,282)($1,259,459)
======= ========= ========= ==========
Net income (loss)
per diluted share- $0.13 $0.03 ($0.16) ($0.16)
Before extraordinary item
Extraordinary item, net of
income tax -- ($0.05) -- ($0.05)
------- ------- --------- ---------
Net income (loss)
per diluted share $0.13 ($0.02) ($0.16) ($0.21)
======= ======= ======== =========
Weighted average shares
outstanding -
on a diluted basis 6,145,998 6,572,750 6,196,644 6,579,778
========= ========= ========= =========
Amerihost Properties, Inc. is a hotel development, operations, management and franchise company that owns, builds, manages and franchises mid-priced hotels. Currently, Amerihost manages or franchises 92 properties (with an ownership position in 87 of these hotels) in 18 states, including 77 properties within its proprietary brand - AmeriHost Inn(R). Each hotel offers an amenity a·men·i·ty n. pl. a·men·i·ties 1. The quality of being pleasant or attractive; agreeableness. 2. Something that contributes to physical or material comfort. 3. package not often found in other mid-priced hotels. In addition, every AmeriHost Inn(R) hotel is "three-diamond" rated by AAA AAA: see American Automobile Association. (Triple A) A common single-cell battery used in a myriad of electronic devices of all variety. Like its double A (AA) cousin, it provides 1.5 volts of DC power. When used in series, the voltage is multiplied. . Certain statements appearing in this press release can be construed as forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. within the meaning of Section 27A of the Securities Exchange Act of 1934, as amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. . These statements are subject to risks and uncertainties that could cause actual results to differ materially from those set forth in the forward-looking statements, including without limitation, risks relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the development and operation of hotels, the availability of capital to finance growth, franchising of the AmeriHost Inn(R) hotel brand, and the historical cyclicality of the lodging Lodging or holiday accommodation is a type of accommodation. People who travel and stay away from home for more than a day need lodging mainly for sleeping. Other purposes are safety, shelter from cold and rain, having a place to store luggage and being able to take a industry. |
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