CapStar Hotel Company announces fourth quarter and year end results.WASHINGTON Washington, town, England Washington, town (1991 pop. 48,856), Sunderland metropolitan district, NE England. Washington was designated one of the new towns in 1964 to alleviate overpopulation in the Tyneside-Wearside area. , D.C.--(BUSINESS WIRE)--February 3, 1997--CapStar Hotel Company (NYSE NYSE See: New York Stock Exchange :CHO CHO Carbohydrate (chemical formla Carbon Hydrogen Oxygen) CHO Chinese Hamster Ovary CHO Chemical Hygiene Officer CHO Chief Health Officer (corporate title) ) today announced financial results for the fourth quarter and year ended December December: see month. 31, 1996. The Company also announced it had completed the acquisitions of the 295 room Westchase Westchase is a placename used in the United States:
American hotel-chain organizer who acquired hotels in many American cities and in 1946 founded the Hilton Hotel Corporation. in Houston, Texas “Houston” redirects here. For other uses, see Houston (disambiguation). Houston (pronounced /'hjuːstən/) is the largest city in the state of Texas and the and the 294 room Doubletree dou·ble·tree n. A crossbar on a wagon or carriage to which two whiffletrees are attached for harnessing two animals abreast. Noun 1. Hotel in Albuquerque, New Mexico “Albuquerque” redirects here. For other uses, see Albuquerque (disambiguation). Albuquerque (pronounced [ˈæl.bə.kɚ.kiː], Spanish: [al.βu. on January January: see month. 31, 1997. Pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma net income for the quarter increased 250% to $ 2.7 million or $ 0.21 per share, compared to net income of $ 0.8 million, or $ 0.06 per share, on a pro forma basis for the fourth quarter of 1995. Pro forma earnings pro forma earnings Income not necessarily calculated in accordance with generally accepted accounting principles. For example, a company might report pro forma earnings that exclude depreciation expense and nonrecurring expenses such as restructuring costs. before interest, income taxes, depreciation and amortization (EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become ) for the fourth quarter of 1996 were $ 7.9 million, compared to pro forma EBITDA of $ 4.4 million, a 77% increase versus the fourth quarter of last year. Pro forma revenues increased to $ 30.5 million from $ 27.4 million in the comparable period last year. Pro forma net income for the year was $ 9.8 million, or $ 0.76 per share, a 72% increase over net income of $ 5.7 million, or $ 0.44 per share, on a pro forma basis in 1995. Pro forma EBITDA for 1996 rose 31% to $ 30.1 million, compared to $ 22.9 million, on a pro forma basis, for 1995. Pro forma revenues for the 1996 rose to $ 122.7 million compared to $ 114.0 million last year. Pro forma results assume CapStar s Initial Public Offering (IPO (Initial Public Offering) The first time a company offers shares of stock to the public. While not a computer term per se, many founders, employees and insiders of computer companies have found this acronym more exciting than any tech term they ever heard. ) and the acquisition of the Company s initial 12 owned hotels had occurred at the beginning of the periods presented. Pro forma earnings per share are based on 12.75 million shares outstanding for the fourth quarter and year ended December 31, 1996 and 1995. Fourth quarter 1996 pro forma Revenue Per Available 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. ) was $ 56.01, compared to $50.24 for the same period last year, an increase of 11.5%. Pro forma Average Daily Rate (ADR ADR - Astra Digital Radio ) for the fourth quarter was $82.58, an increase of $7.48 or 10%, versus the fourth quarter of 1995. Fourth quarter pro forma occupancy rates Noun 1. occupancy rate - the percentage of all rental units (as in hotels) are occupied or rented at a given time pct, per centum, percent, percentage - a proportion in relation to a whole (which is usually the amount per hundred) increased 1.3% to 67.8% from 66.9% in the comparable period last year. Pro forma RevPAR for 1996 increased 12.3% to $61.11 from $54.44 in 1995. Pro forma ADR for 1996 grew 11.4% to $83.82 from $75.25 in 1995, while pro forma occupancy rates increased 0.7% to 72.9% from 72.4%. "We are extremely pleased with our accomplishments since the successful completion of our August IPO," said Paul Whetsell, president and chief executive officer. "We have acquired ten properties in the last five months in areas experiencing strong economic growth, all at a significant discount to replacement cost. Through our yield management programs, we were able to drive our average daily rate which led to significant gains in net income. Finally, our renovation schedule remains on track and we anticipate that current projects will be completed in the first quarter of 1997." Whetsell continued, "We are very enthusiastic about the upcoming year as we continue the execution of our aggressive growth strategy. The outlook for the upscale, full-service sector is strong and our acquisition pipeline remains full. We continue to identify an abundance Abundance See also Fertility. Amalthea’s horn horn of Zeus’s nurse-goat which became a cornucopia. [Gk. Myth.: Walsh Classical, 19] cornucopia conical receptacle which symbolizes abundance. [Rom. Myth. of properties at discounted prices in our target markets, which we believe could benefit from our yield management programs and generate substantial growth in EBITDA and earnings going forward." CapStar owns and manages upscale, full service hotels throughout the U.S. under such nationally known brands as Hilton, Sheraton, Marriott and Westin. The company currently owns 22 upscale, full service hotels, with 5,981 rooms. CapStar is one of the nation's largest hotel management companies and currently manages 53 hotels with 11,002 rooms.
CapStar Hotel Company
Consolidated Statements Of Operations
(unaudited)
-PRO FORMA-
Three Months Ended Dec. 31, Year Ended Dec. 31,
1996 1995 1996 1995
Rooms $18,072,539 $16,208,486 $77,551,952 $70,427,377
Food and Beverage 9,684,329 9,135,203 34,741,710 34,326,566
Management Fees
and Other Revenue 2,755,690 2,070,144 10,434,397 9,244,823
Total Revenue 30,512,558 27,413,833 122,728,059 113,998,766
Hotel Operating Expenses
by Department Rooms 4,846,485 4,452,989 19,574,598 18,462,214
Food and Beverage 7,357,787 7,189,467 27,826,165 27,850,281
Other Operating Expenses 655,716 671,065 2,858,162 2,837,480
Undistributed Operating
Expenses Administrative
and General 5,230,309 6,601,063 23,605,759 26,145,846
Property Operating
Costs 3,338,425 2,509,629 13,491,108 9,625,887
Property Taxes,
Insurance and Other 1,246,473 1,558,509 5,298,101 6,257,086
Depreciation and
Amortization 2,152,533 2,041,559 9,324,980 8,876,343
Total Operating
Expenses 24,827,728 25,024,281 101,978,873 100,055,137
Interest Expense, net 1,173,069 1,106,922 4,494,452 4,577,293
Income Before Minority
Interest, Income Taxes 4,511,761 1,282,630 16,254,734 9,366,336
Minority Interest 18,940 14,759 1,077 59,036
Income Before
Income Taxes 4,530,701 1,297,389 16,255,811 9,425,372
Income Taxes 1,812,280 518,956 6,502,324 3,770,149
Net Income $ 2,718,421 $ 778,433 $ 9,753,487 $ 5,655,223
Earnings Per Share $ 0.21 $ 0.06 $ 0.76 $ 0.44
Occupancy 67.8% 66.9% 72.9% 72.4%
ADR $ 82.58 $ 75.10 $ 83.82 $ 75.25
RevPAR $ 56.01 $ 50.24 $ 61.11 $ 54.44
CapStar Hotel Company
Consolidated Statements Of Operations
(including predecessor entity)
(unaudited)
-ACTUAL-
Three Months Ended Dec. 31, Year Ended Dec. 31,
1996 1995 1996 1995
Rooms $ 19,537,388 $6,659,012 $68,497,515 $14,456,387
Food and Beverage 10,442,441 3,385,999 30,967,825 5,900,238
Management Fees
and Other Revenue 2,684,233 2,107,351 10,326,882 6,006,723
Total Revenue 32,664,062 12,152,362 109,792,222 26,363,348
Hotel Operating Expenses
by Department
Rooms 5,277,069 2,104,133 17,509,304 4,190,299
Food and Beverage 7,969,055 2,880,335 24,588,818 4,923,790
Other Operating Expenses 715,343 267,269 2,513,368 512,791
Undistributed Operating
Expenses Administrative
and General 5,658,222 3,603,590 20,555,689 8,078,304
Property Operating Costs 3,665,933 807,293 12,586,008 2,623,626
Property Taxes, Insurance
and Other 1,340,056 833,319 4,565,013 1,310,517
Depreciation
and Amortization 2,293,072 1,131,539 8,247,649 2,097,512
Total Operating Expenses 26,918,750 11,627,478 90,565,849 23,736,839
Interest Expense, net 1,810,585 1,281,906 12,238,482 2,413,348
Income (Loss) Before
Minority Interest,
Income Taxes and
Extraordinary Loss 3,934,727 (757,022) 6,987,891 213,161
Minority Interest 18,940 17,415 38,838 17,415
Income (Loss) Before
Income Taxes and
Extraordinary Loss 3,953,667 (739,607) 7,026,729 230,576
Income Taxes 1,581,466 0 2,673,369 0
Income before
Extraordinary Loss 2,372,201 (739,607) 4,353,360 230,576
Extraordinary Loss from
Early Extinguishment
of Debt, net of
Deferred Tax Benefit 0 887,631 1,956,180 887,631
Net Income (Loss) $2,372,201 ($1,627,238) $2,397,180 ($657,055)
CONTACT: CapStar Hotel Company John Emery emery: see corundum. emery Granular rock consisting of a mixture of the mineral corundum (aluminum oxide, Al2O3) and iron oxides such as magnetite (Fe3O4) or hematite (Fe2O3). , 202/965-4455 or Morgen-Walke Associates Robert Jones/Christine DiSanto/Jim Cappuccio Stan STAN Stanchion STAN Stärke- und Ausrüstungsnachweis (German) Stan Standard Man (human patient simulator) STAN SEMCIP Technical Assistance Network STAN System Trace Audit Number STAN Star Trek Area Network Froelich/Leslie Feldman - Media Relations 212/850-5600 |
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