DOUBLETREE REPORTS 1997 FIRST QUARTER RESULTS.PHOENIX--(BUSINESS WIRE)--April 30, 1997--Doubletree Corporation (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :TREE), a leading hotel management and franchise company, reported 1997 first quarter net income of $15.2 million and earnings per share of 38 cents. Excluding the effect of unusual items, net income was $10.0 million which represented a 111 percent increase over 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 1996 first quarter net income of $4.7 million. Earnings per share before unusual items were 25 cents compared to 12 cents in the year ago pro forma period, a gain of 108 percent. Revenues before unusual items increased 15% to $176.2 million. During the quarter, the Company realized three unusual items: (1) a break-up break-up noun 1. separation, split, divorce, breakdown, ending, parting, breaking, splitting, wind-up, rift, disintegration, dissolution, termination noun 2. fee of $10.9 million (net of expenses) related to the terminated ter·mi·nate v. ter·mi·nat·ed, ter·mi·nat·ing, ter·mi·nates v.tr. 1. To bring to an end or halt: Renaissance Renaissance (rĕnəsäns`, –zäns`) [Fr.,=rebirth], term used to describe the development of Western civilization that marked the transition from medieval to modern times. Hotel Group transaction, (2) a $3.0 million gain from the sale of the Company's management rights for a hotel under development, and (3) $5.5 million of expenses for the establishment of long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. compensation plans for senior management. These items contributed $5.2 million and 13 cents, respectively, to 1997 first quarter net income and earnings per share. The Company stated that 1996 pro forma results provide a more meaningful comparison than historical results, because the pro forma financial data assumes that the November November: see month. 8, 1996 acquisition of Red Lion Red Lion may refer to:
In the first quarter of 1997, the average room rate at the Company's comparable hotels (in the system from January 1, 1996 through March 31, 1997) managed under the 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. brand increased 10.7 percent from the year-ago period to $104, and occupancy Gaining or having physical possession of real property subject to, or in the absence of, legal right or title. In a fire insurance policy, for example, the term occupancy improved 1.6 percentage points to 70.8 percent, resulting in a 13.2 percent increase in revenue per available room (REVPAR) for the quarter. Comparable hotels managed under the Red Lion brand achieved a 9.6 percent increase in average room rate to $86 and occupancy declined 1.1 percentage points to 64.4 percent for the first quarter of 1997 versus the prior year period, resulting in a 7.7 percent increase in REVPAR for the quarter. Comparable hotels managed under other franchisors brands or as independent hotels experienced a 5.6 percent increase in average room rate to $75 for the first quarter of 1997 over the prior year period and occupancy declined 1.8 percentage points to 70.9 percent, resulting in a 3.0 percent increase in REVPAR for the quarter. The Company added eight new contracts totaling 1,934 rooms during the 1997 first quarter and terminated two contracts totaling 626 rooms, resulting in a net addition of six contracts aggregating 1,308 rooms. As of March 31, 1997, the Company had a portfolio of 247 properties totaling 57,345 rooms under lease, management (including owned hotels), or franchise agreement. This represents a 47 percent increase in the number of rooms compared to March 31, 1996. Commenting on the first quarter, Richard Ri·chard , Joseph Henri Maurice Known as "Rocket." 1921-2000. Canadian hockey player. A right wing for the Montreal Canadiens (1942-1960), he led his team to eight Stanley Cup championships and was the first player to score 50 goals in a M. Kelleher People named Kelleher:
adj. 1. Almost exact or correct: the approximate time of the accident. 2. 40 to 45 hotels will be converted during the balance of 1997." Doubletree Corporation is a leading hotel management company and is the exclusive franchisor of Doubletree Hotels, Doubletree Guest Suites, Club Hotels by Doubletree and Red Lion hotel brands. Certain matters within this news release are discussed using forward-looking for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. language as specified spec·i·fy tr.v. spec·i·fied, spec·i·fy·ing, spec·i·fies 1. To state explicitly or in detail: specified the amount needed. 2. To include in a specification. 3. in the 1995 Private Securities Litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. Reform Law, and, as such, may involve known and unknown risks, uncertainties and other factors that may cause the actual results or performance to differ from those projected in the forward-looking statement 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. . Although Doubletree believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that its expectations will be attained at·tain v. at·tained, at·tain·ing, at·tains v.tr. 1. To gain as an objective; achieve: attain a diploma by hard work. 2. . From time to time, these risks are discussed in the Company's filings with the Securities and Exchange Commission. -0-
DOUBLETREE CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except per share amounts)
Quarter Ended
March 31,
------------------------
1997 1996
Actual(1) Pro Forma(2)
---------- --------------
Revenues:
Management and franchise fees $12,487 $10,014
Owned hotel revenues 56,592 53,660
Leased hotel revenues 94,833 71,032
Purchasing and service fees 10,573 17,913
Other fees and income 15,686 539
-------- --------
Total revenues 190,171 153,158
-------- --------
Operating costs and expenses:
General and administrative 11,518 6,592
Owned hotel expenses 37,595 36,798
Leased hotel expenses 86,696 64,791
Purchasing and service expenses 9,045 16,311
Depreciation and amortization 12,020 12,085
-------- --------
Total operating costs and expenses 156,874 136,577
-------- --------
Operating income 33,297 16,581
Interest expense (10,948) (10,561)
Interest income 2,747 2,717
-------- --------
Income before income taxes
and minority interest 25,096 8,737
Minority interest share of net income (498) (644)
-------- --------
Income before income taxes 24,598 8,093
Income tax expense 9,416 3,367
-------- --------
Net income $15,182 $4,726
-------- --------
Earnings per share $0.38 $0.12
-------- --------
Weighted average shares outstanding 40,460 39,034
-------- --------
(1) Includes a break-up fee of $10.9 million (net of expenses)
related to the terminated Renaissance Hotel Group transaction, a
$3.0 million gain from the sale of the Company's management rights
for a hotel under development in Atlantic City, and $5.5 million of
expenses for the establishment of long-term compensation plans for
senior management. These items contributed $13.9 million,
$8.5 million, $5.2 million, and 13 cents, respectively, to 1997
first quarter revenues, operating income, net income, and earnings
per share.
(2) 1996 first quarter results are presented on a pro forma basis to
give effect to the November 8, 1996 acquisition of Red Lion Hotels,
Inc. (Red Lion), and related transactions, as if they had occurred
on January 1, 1996.
DOUBLETREE CORPORATION
SUMMARY OPERATING DATA
QUARTER ENDED INCREASE/(DECREASE)
MARCH 31, 1997 VERSUS DECEMBER 31, 1996
-------------- ------------------------
NUMBER OF HOTELS
----------------
DOUBLETREE FULL-SERVICE HOTELS 63 5
DOUBLETREE GUEST SUITE HOTELS 42 6
CLUB HOTELS BY DOUBLETREE 16 0
------- -------
TOTAL DOUBLETREE BRAND
HOTELS 121 11
RED LION HOTELS 52 (4)
NON-DOUBLETREE BRAND HOTELS 74 (1)
------- -------
TOTAL COMPANY HOTEL
PORTFOLIO 247 6
======= =======
NUMBER OF ROOMS
---------------
DOUBLETREE FULL-SERVICE HOTELS 19,317 1,727
DOUBLETREE GUEST SUITE HOTELS 8,987 1,214
CLUB HOTELS BY DOUBLETREE 3,385 52
------- -------
TOTAL DOUBLETREE BRAND
HOTELS 31,689 2,993
RED LION HOTELS 13,520 (1,339)
NON-DOUBLETREE BRAND HOTELS 12,136 (346)
------- -------
TOTAL COMPANY HOTEL
PORTFOLIO 57,345 1,308
======= =======
QUARTER ENDED INCREASE/(DECREASE)
MARCH 31, 1997 VERSUS MARCH 31, 1996
-------------- ---------------------
REVENUE ANALYSIS (1)
--------------------
DOUBLETREE FULL-SERVICE HOTELS
OCCUPANCY PERCENTAGE 69.2% 1.5 PTS
AVERAGE DAILY RATE $97.52 10.7%
REVENUE PER AVAILABLE ROOM $67.47 13.0%
DOUBLETREE GUEST SUITE HOTELS
OCCUPANCY PERCENTAGE 74.4% 2.2 PTS
AVERAGE DAILY RATE $120.08 10.7%
REVENUE PER AVAILABLE ROOM $89.37 14.2%
CLUB HOTELS BY DOUBLETREE (2)
OCCUPANCY PERCENTAGE 69.6% -3.7 PTS
AVERAGE DAILY RATE $74.41 1.4%
REVENUE PER AVAILABLE ROOM $51.83 -3.6%
TOTAL DOUBLETREE BRAND HOTELS
OCCUPANCY PERCENTAGE 70.8% 1.6 PTS
AVERAGE DAILY RATE $104.47 10.7%
REVENUE PER AVAILABLE ROOM $73.98 13.2%
RED LION HOTELS
OCCUPANCY PERCENTAGE 64.4% -1.1 PTS
AVERAGE DAILY RATE $86.43 9.6%
REVENUE PER AVAILABLE ROOM $55.62 7.7%
NON-DOUBLETREE BRAND HOTELS
OCCUPANCY PERCENTAGE 70.9% -1.8 PTS
AVERAGE DAILY RATE $75.21 5.6%
REVENUE PER AVAILABLE ROOM $53.31 3.0%
TOTAL COMPANY HOTEL PORTFOLIO
OCCUPANCY PERCENTAGE 68.5% -0.1 PTS
AVERAGE DAILY RATE $92.50 9.7%
REVENUE PER AVAILABLE ROOM $63.37 9.6%
(1) Revenue statistics are for comparable hotels and includes
information only for those hotels in the system as of March 31, 1997
and managed by Doubletree or Red Lion since January 1, 1996.
(2) Includes results for only two properties.
CONTACT: Doubletree Corporation, Phoenix William William, crown prince of Germany William or Frederick William, 1882–1951, crown prince of Germany, son of William II. In World War I he commanded (1914) an army on the Western Front and was nominal commander in the German attack L. Perocchi, Executive VP & CFO See Chief Financial Officer. , 602/220-6810 |
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