Four Seasons Hotels Inc. Reports 1996 Fourth Quarter and Year End Results Balance Sheet Significantly Strengthened by Recent Equity Issue Trading Commenced on New York Stock Exchange.TORONTO--(BUSINESS WIRE)--Feb. 18, 1997--FOUR SEASONS HOTELS(TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). , ME FSH FSH follicle-stimulating hormone. FSH abbr. follicle-stimulating hormone Facioscapulohumeral muscular dystrophy (FSH) ., NYSE NYSE See: New York Stock Exchange FS. ) Four Seasons Hotels Inc. today reported its fourth quarter 1996 and year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. results for the period ended December December: see month. 31, 1996. Net earnings for the quarter ended December 31,1996, increased to $11.2 million ($.39 per share) compared to a net loss of $86.2 million ($3.03 per share) for the quarter ended December 31,1995. On a normalized basis, excluding the accounting provision of $95 million taken in 1995 for certain 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. and other real estate interests, net earnings increased 28%. For the full year ended December 31, 1996, net earnings increased 46% to $29.9 million ($1.04 per share) compared to normalized net earnings of $20.4 million ($.72 per share) for the year ended December 31, 1995. Isadore Sharp Isadore "Issy" Sharp, O.C. (born October 8, 1931) is a Jewish-Canadian businessman and founder, chairman and CEO of Four Seasons Hotels and Resorts. In 1952, he graduated from the Ryerson University with a degree in architecture. , Chairman and Chief Executive Officer, said, "We are pleased with the results of the 1996 fourth quarter and full year which reflect the transition of Four Seasons to a global luxury management company. We believe that the Company is poised for significant growth due to the favourable dynamics in 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 and Four Seasons strong position in that industry, which is a result of our management expertise, global diversity and the strength of the Four Seasons and Regent REGENT. 1. A ruler, a governor. The term is usually applied to one who governs a regency, or rules in the place of another. 2. In the canon law, it signifies a master or professor of a college. Dict. du Dr. Call. h.t. 3. brand names. These competitive advantages should continue to enhance our position and build shareholder value." OPERATING PERFORMANCE Operating earnings Operating Earnings Profits after subtracting expenses such as marketing, cost of goods sold, administration and general operating costs from revenue. Notes: Tax and interest expenses are not subtracted - operating earnings are synonymous with EBIT (earnings before (before other operating items, including investment income, depreciation and amortization, and provision for loss) decreased by 5.7% to $19.4 million in the fourth quarter of 1996 from $20.6 million in the fourth quarter of 1995. This reduction in operating earnings was expected and reflects the disposition of a 50% interest in the Four Seasons Hotel London London, city, Canada London, city (1991 pop. 303,165), SE Ont., Canada, on the Thames River. The site was chosen in 1792 by Governor Simcoe to be the capital of Upper Canada, but York was made capital instead. London was settled in 1826. in December 1995, and was more than offset by a related reduction in net interest, depreciation and tax expenses. Operating earnings for the year ended December 31, 1996 decreased 3.5% to$64.3 million, as compared to $66.7 million in 1995. Consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: revenues decreased 11% to $120.7 million for the year ended December 31, 1996,as compared to $135.6 million in 1995, also due to the sale of the Four Seasons Hotel London noted above. Fully opened hotels under management during both the quarter and year ended December 31,1995 and 1996 showed an average increase of approximately 12% in yield in 1996 as compared to 1995 (where yield is average room revenue per available room). These strong yield improvements resulted from a continued growth in demand, as virtually no increases were made in the supply of luxury hotel rooms in the Company's primary markets. The annual yield increases on a regional basis were approximately 13% in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. and Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). , 10%
in Asia and 16% in the South Pacific.HOTEL MANAGEMENT These yield increases, combined with the Company's profit retention practices, allowed the operating profitability of hotels under management to increase 21% for both the quarter and year ended December 31, 1996, as compared to similar periods in 1995. Revenues under management for the year ended December 31, 1996 increased 3.5% to $1.9 billion compared to $1.8 billion for the year ended December 31, 1995. This increase in revenues under management is a combination of solid growth in existing hotels and resorts, and the addition of new properties under management, offset by the loss of three management contracts during the year as a result of the sale of certain hotels and the cessation cessation Vox populi The stopping of a thing. See Smoking cessation. of management of those properties by the Company. This revenue under management improvement contributed to an increase of 7.1% in fee revenues to $94.7 million for 1996, as compared to $88.5 million for 1995. Excluding the impact of contracts lost during 1996, management fees from existing hotels were 13% higher than 1995. The improvement in gross operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. of these hotels positively affected growth in the Company's management incentive fees, which are tied to the profitability of certain of the managed hotels. Incentive fees were 28.9% higher in 1996 compared to 1995, and accounted for 20% of total fees earned for 1996 as compared to 17% for 1995. Hotel management earnings before other operating items for the fourth quarter of 1996 were $16.6 million ($15.8 million in the fourth quarter of 1995), bringing the full year management earnings to $55.7 million as compared to $51.8 million in 1995. The Company's hotel management operations contributed 87% of total operating earnings for the year ended December 31, 1996. The hotel management business continues to achieve high profitability margins. The operating profit margin Operating profit margin The ratio of operating profit to net sales. for the hotel management business was 61% in the fourth quarters of 1996 and 1995. For the full year, the management operations profit margin was 59% in both 1996 and 1995. With the continued growth in management fee revenues and modest increases to the corporate cost base, the profitability of the Company's hotel management business has improved from 46% in 1993 to 59% in 1996. Given the expected growth in fees combined with high profit retention on new management contracts, the Company's objective is to achieve a 60% margin in 1997. HOTEL OWNERSHIP Hotel ownership earnings before other operating items decreased 43% to $2.8 million in the fourth quarter of 1996 ($4.8 million in the fourth quarter of 1995) and decreased 42% to $8.7 million for the year ended December 31, 1996, as compared to $14.9 million in 1995. This expected reduction in hotel ownership earnings is the result of the Company's asset disposition programme which included the sale of the Four Seasons Hotel London, the ownership of which was previously proportionately pro·por·tion·ate adj. Being in due proportion; proportional. tr.v. pro·por·tion·at·ed, pro·por·tion·at·ing, pro·por·tion·ates To make proportionate. consolidated by the Company until its disposition on December 15, 1995. The asset disposition programme initiated in 1993 was successfully completed in early 1997 and during that period resulted in the sale of 14 hotel ownership interests for net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). of $146 million, used primarily to reduce corporate debt. At the end of 1996 the partnership which held the Company's leasehold interest in the Four Seasons Hotel Vancouver Vancouver, city, Canada Vancouver, city (1991 pop. 471,844), SW British Columbia, Canada, on Burrard Inlet of the Strait of Georgia, opposite Vancouver Island and just N of the Wash. border. and The Pierre Pierre (pēr), city (1990 pop. 12,906), state capital (since 1889) and seat of Hughes co., central S.Dak., on the east bank of the Missouri River, opposite Fort Pierre; inc. 1883. in New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of was effectively dissolved dis·solve v. dis·solved, dis·solv·ing, dis·solves v.tr. 1. To cause to pass into solution: dissolve salt in water. 2. . At that time, all claims against the Company by its partner were settled. As a result of the effective dissolution Act or process of dissolving; termination; winding up. In this sense it is frequently used in the phrase dissolution of a partnership. The dissolution of a contract is its Rescission by the parties themselves or by a court that nullifies its binding force and reinstates each of the partnership, the Company consolidated the operations of these two hotels as at December 31, 1996. The Company's investment in the partnership as at December 31, 1996 was $3.5 million and accordingly, the consolidation of these hotels will not have a material effect on the balance sheet of the Company. It is expected that the 1997 full year impact on the income statement of the reconsolidation Re`con`sol`i`da´tion n. 1. The act or process of reconsolidating; the state of being reconsolidated. of these properties will not be material. However,since the first quarter of the year is historically the weakest quarter for these hotels, the impact on the first quarter of 1997 of the consolidation of these leasehold interests is expected to be material, reducing earnings in the first quarter of 1997, as compared to the first quarter of 1996. In 1996, together these two hotels had a loss of approximately $4.0 million in the first quarter,had earnings of approximately $1.4 million in the second quarter, had a loss of approximately $160,000 in the third quarter and had earnings of approximately $2.6 million in the fourth quarter for an overall net loss of approximately $150,000 in 1996. The Company expects that the seasonality trend for these hotels will be similar in 1997, however, it is expected on an annual basis that the contribution to earnings will be positive but not material. CASH FLOW FROM OPERATIONS Cash flow from operations A firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses For the year ended December 31, 1996, cash flow from operations was $43.7 million, as compared to $38.7 million for 1995. Total net spending for 1996 was $26.9 million (including all capital spending capital spending Spending for long-term assets such as factories, equipment, machinery, and buildings that permits the production of more goods and services in future years. and dividends paid, but excluding proceeds from asset disposals), are duction duction /duc·tion/ (duk´shun) in ophthalmology, the rotation of an eye by the extraocular muscles around its horizontal, vertical, or anteroposterior axis. duc·tion n. 1. of $1.9 million over the 1995 total spending level of $28.7 million. EQUITY ISSUE On February February: see month. 12, 1997 the Company completed the issuance of 4,370,000 limited voting Limited voting is a voting system in which electors have fewer votes than there are positions available. The positions are awarded to the candidates who receive the most votes absolutely. shares for net proceeds of approximately $114 million. A portion of the net proceeds (US$36.5 million) was used to repay amounts drawn on the Company's operating line with its principal banker BANKER, com. law. A banker is one engaged in the business of receiving other persons money in deposit, to be returned on demand discounting other persons' notes, and issuing his own for circulation. One who performs the business usually transacted by a bank. . As a result of the equity issue, the Company's total debt position as at December 31, 1996 was$185.8 million (representing 48% of book equity and approximately 15% of market capitalization Market Capitalization A measure of a public company's size. Market capitalization is the total dollar value of all outstanding shares. It's calculated by multiplying the number of shares times the current market price. This term is often referred to as market cap. ) and cash increased to $80 million, both on a proforma Proforma A financial projection based on assumptions. basis. Approximately $34 million of the proceeds will be used to fund a loan by the Company to the owner of the Hotel George V George V, king of Great Britain and Ireland George V (George Frederick Ernest Albert), 1865–1936, king of Great Britain and Ireland (1910–36), second son and successor of Edward VII. that is to be made when the Company obtains the management of this important property in Paris. The Company also began trading on the New York Stock Exchange New York Stock Exchange (NYSE) World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. effective February 7 under the ticker symbol Ticker Symbol An arrangement of characters (usually letters) representing a particular security listed on an exchange or otherwise traded publicly. When a company issues securities to the public marketplace, it selects an available ticker symbol for its securities which investors "FS". OUTLOOK FOR 1997 John Sharpe John Sharpe may refer to:
The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. commented, "In 1997, we expect our growth targets will be met through the combination of continued growth in our hotel management business and significantly lower interest costs resulting from the reduction in debt levels. At the same time we are excited about the expansion of our business base into vacation VACATION. That period of time between the end of one term and beginning of another. During vacation, rules and orders are made in such cases as are urgent, by a judge at his chambers. ownership, our alliance with Carlson Carl·son , Chester Floyd 1906-1968. American inventor of the xerographic process for copying documents (first patented in 1940). Hospitality to expand the Regent brand name around the world, and the openings of new Four Seasons hotels and resorts The creator of this article, or someone who has substantially contributed to it, may have a conflict of interest regarding its subject matter. It may require cleanup to comply with Wikipedia's content policies, particularly neutral point of view. in Aviara, California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W). , Goa, India India, officially Republic of India, republic (2005 est pop. 1,080,264,000), 1,261,810 sq mi (3,268,090 sq km), S Asia. The second most populous country in the world, it is also sometimes called Bharat, its ancient name. India's land frontier (c. and Bali Bali (bä`lē), island and (with two offshore islets) province (1990 pop. 2,777,356), c.2,200 sq mi (5,700 sq km), E Indonesia, westernmost of the Lesser Sundas, just E of Java across the narrow Bali Strait. The capital is Denpasar. in 1997." Four Seasons Hotels and Resorts is the world's largest operator of luxury hotels. Upon completion of properties currently under construction or in advanced stages of development, Four Seasons will have 51 hotels operating in 22 countries. All dollar amounts referred to above are Canadian dollars Noun 1. Canadian dollar - the basic unit of money in Canada; "the Canadian dollar has the image of loon on one side of the coin" loonie dollar - the basic monetary unit in many countries; equal to 100 cents unless otherwise noted. Certain statements contained in this press release that do not relate to historical information are "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 the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995 and are thus prospective. Such forward-looking statements are subject to risks, uncertainties and other factors which could cause actual results to differ materially from future results expressed, projected or implied by such forward-looking statements. Such factors include, but are not limited to economic conditions, competition and lodging industry conditions. The Company disclaims any responsibility to update any of such forward-looking statements.
SUMMARY STATISTICS FOR CORE HOTELS 1
1996
----
Full Q4 Q3 Q2 Q1
Year
--- -- -- -- --
Occupancy (Percentage) 74.6 75.3 74.7 75.3 72.8
Achieved Room Rate ($) 323 337 314 323 313
Rev Par2 ($) 241 254 234 243 228
Gross Operating Profit Margin
(Percentage of Gross 32.9 35.1 31.2 33.5 31.3
Operating Revenues)
1995
----
Full Q4 Q3 Q2 Q1
Year
--- -- -- -- --
Occupancy (Percentage) 72.4 72.6 73.8 72.8 70.3
Achieved Room Rate ($) 298 312 285 296 294
Rev Par2 ($) 215 227 210 215 207
Gross Operating Profit Margin
(Percentage of Gross 29.9 31.9 28.5 30.8 28.0
Operating Revenues)
1 For stabilized hotels, which would include all hotels and
resorts that are fully open and are under the Company's
management throughout a particular year and during the last
quarter of the prior year, the Rev Par increase for the full year
1996 was 19 percent.
2 Rev Par or yield is defined as average room revenue per
available room.
Dollar amounts noted above are Canadian dollars.
FOUR SEASONS HOTELS INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
Three months ended Years ended
(unaudited)(Canadian $000's) December 31, December 31,
1996 1995 1996 1995
-------------------------------------------------------------
Consolidated revenues
(note 1) $ 35,152 $ 38,867 $ 120,711 $135,587
-------- -------- --------- --------
-------- -------- --------- --------
HOTEL MANAGEMENT OPERATIONS
Fee revenues
(note 2) $ 27,111 $ 25,941 $ 94,729 $ 88,460
General and
administrative
expenses (10,470) (10,185) (39,057) (36,709)
-------- -------- --------- --------
16,641 15,756 55,672 51,751
HOTEL OWNERSHIP OPERATIONS
Revenues 5,225 11,132 17,639 42,430
Distributions from
hotel investments 3,123 2,172 9,174 6,036
Expenses:
Cost of sales
and expenses (5,284) (8,106) (17,310) (32,187)
Fees to Hotel
Management
Operations (307) (378) (831) (1,339)
-------- -------- --------- --------
2,757 4,820 8,672 14,940
-------- -------- --------- --------
Earnings before other
operating items 19,398 20,576 64,344 66,691
Other operating items:
Investment income 204 159 240 173
Depreciation and
amortization (3,402) (4,628) (13,991) (16,883)
Provision for loss
(note 3) - (95,000) - (95,000)
-------- -------- --------- --------
Earnings (loss)
from operations 16,200 (78,893) 50,593 (45,019)
Interest expense, net (4,448) (6,078) (18,767) (25,669)
-------- -------- --------- --------
Earnings (loss)
before income taxes 11,752 (84,971) 31,826 (70,688)
Income tax expense:
Current (468) (1,085) (1,730) (3,393)
Deferred (67) (170) (230) (490)
-------- -------- --------- --------
(535) (1,255) (1,960) (3,883)
-------- -------- --------- --------
Net earnings (loss) $ 11,217 $(86,226) $ 29,866 $(74,571)
-------- -------- --------- --------
-------- -------- --------- --------
Earnings (loss)
per share $ 0.39 $ (3.03) $ 1.04 $ (2.62)
-------- -------- --------- --------
-------- -------- --------- --------
FOUR SEASONS HOTELS INC.
CONSOLIDATED BALANCE SHEETS
As at As at
December 31, December 31,
(unaudited)(Canadian $000's) 1996 1995
-------------------------------------------------------------
ASSETS
Current assets:
Cash and cash equivalents $ 15,394 $ 36,767
Receivables 51,212 21,571
Inventories 1,629 505
Prepaid expenses 1,625 915
-------- --------
69,860 59,758
Long-term receivables 41,429 39,553
Investments in hotel
partnerships and corporations 62,724 76,191
Fixed assets 33,150 32,120
Investment in management contracts 98,437 92,615
Investment in trademarks
and trade names 59,999 60,908
Other assets 19,688 20,488
-------- --------
$385,287 $381,633
-------- --------
-------- --------
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable and
accrued liabilities 54,670 $ 54,095
Long-term debt due
within one year $ 13,403 85,888
-------- --------
68,073 139,983
Long-term debt 226,586 181,738
Deferred income taxes 2,568 2,678
Shareholders' equity:
Capital stock 177,757 176,418
Contributed surplus 4,784 4,784
Deficit (92,278) (119,102)
Equity adjustment from foreign
currency translation (2,203) (4,866)
-------- --------
88,060 57,234
-------- --------
$385,287 $381,633
-------- --------
-------- --------
FOUR SEASONS HOTELS INC.
CONSOLIDATED STATEMENTS OF CASH PROVIDED BY OPERATIONS
Three months ended Years ended
December 31, December 31,
(unaudited)
(Canadian $000's) 1996 1995 1996 1995
-------------------------------------------------------------
Cash provided by (used in) operations:
HOTEL MANAGEMENT OPERATIONS
Earnings before other
operating items $16,641 $ 15,756 $55,672 $51,751
Items not requiring
an outlay of funds 578 346 1,260 681
-------- -------- --------- --------
Working capital provided by Hotel
Management
Operations 17,219 16,102 56,932 52,432
-------- -------- --------- --------
HOTEL OWNERSHIP OPERATIONS
Earnings before other
operating items 2,757 4,820 8,672 14,940
Items not requiring
(providing) an
outlay (inflow)
of funds (1,191) 64 (1,358) 710
-------- -------- --------- --------
Working capital provided by Hotel
Ownership
Operations 1,566 4,884 7,314 15,650
-------- -------- --------- --------
18,785 20,986 64,246 68,082
Investment income 204 159 240 173
Interest paid, net (1,083) (543) (20,768) (25,576)
Current income
tax expense (468) (1,085) (1,730) (3,393)
Change in non-cash
working capital 5,633 853 1,673 (572)
-------- -------- --------- --------
Cash provided
by operations $ 23,071 $ 20,370 $ 43,661 $38,714
-------- -------- --------- --------
-------- -------- --------- --------
FOUR SEASONS HOTELS INC.
CONSOLIDATED STATEMENTS OF CHANGES IN FINANCIAL POSITION
Three months ended Years ended
December 31, December 31,
(unaudited)
(Canadian $000's) 1996 1995 1996 1995
--------------------------------------------------------------
Cash provided by (used in):
Operations: $ 23,071 $ 20,370 $ 43,661 $38,714
-------- -------- --------- --------
Financing:
Long-term debt,
including current
portion (12,185) (27,887) (44,008) (34,429)
Issuance of shares 550 330 1,339 689
Other (46) 16 (46) (164)
-------- -------- --------- --------
Cash used
in financing (11,681) (27,541) (42,715) (33,904)
-------- -------- --------- --------
Capital investments:
Increase in
long-term
receivables (8,167) (27,419) (9,729) (33,992)
Decrease in
long-term
receivables 4,684 84 10,171 1,123
Disposal of
long-term
receivables - - - 13,154
Hotel investments 1,914 (6,735) (16,033) (13,773)
Disposal of hotel
investments 5,601 65,689 5,601 65,689
Acquisition of
hotel investments (1,302) (1,302) - -
Purchase of
fixed assets (284) (953) (1,342) (2,426)
Investment in
trademarks, trade
names and management
contracts (7,469) (177) (5,083) (866)
Other assets 466 159 (1,841) (2,292)
-------- -------- --------- --------
Cash provided by
(used in) capital
investments (4,557) 30,648 (19,558) 26,617
-------- -------- --------- --------
Dividends - - (3,042) (3,130)
-------- -------- --------- --------
Increase (decrease)
in cash 6,833 23,477 (21,654) 28,297
Increase (decrease)
in cash due to
unrealized foreign
exchange gain
(loss) 296 (408) 281 (966)
Cash and cash equivalents,
beginning of period 8,265 13,698 36,767 9,436
-------- -------- --------- --------
Cash and cash equivalents,
end of period $ 15,394 $ 36,767 $ 15,394 $ 36,767
-------- -------- --------- --------
-------- -------- --------- --------
FOUR SEASONS HOTELS INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)(Canadian $000's)
1. Consolidated revenues for Four Seasons Hotels Inc. are
comprised of fee revenues from Hotel Management Operations,
revenues from Hotel Ownership Operations, distributions from
hotel investments, less fees from Hotel Ownership Operations to
Hotel Management Operations.
2. Total revenues under management were $519,858 for the three
months ended December 31, 1996 $498,450 for the three months
ended December 31, 1995) and $1,901,523 for the year ended
December 31, 1996 ($1,837,945 for the year ended December 31,
1995). Total revenues under management consist of rooms, food
and beverage, telephone and other revenues of all the hotels
which the Company manages. Approximately 67 percent of the fee
revenues earned by the Company in 1996 were calculated as a
percentage of the total revenues under management of all hotels.
3. In December 1995, the Company reviewed the current status and
operating results of the three remaining hotels contributed by
the Company to FRA Properties (Vancouver, Toronto and The Pierre
- New York, each of which is a leasehold interest). In light of
adverse developments with the landlords at each hotel, the
Company concluded that it was unlikely that it would recover all
of its investment in these hotels over the remaining initial
terms of these leases. The Company also reviewed the current
status of two hotel projects under development.
Based on this review, the Company concluded that it was necessary
to record a provision for loss on these hotel investments and
related assets in 1995 of $95,000 in order to write these
investments and related assets down to their estimated net
recoverable value, and to provide for likely losses on debt
guarantees and lease commitments relating to these hotels.
CONTACT: Four Seasons Hotels Inc. Douglas Douglas, city, Isle of Man Douglas, city (1991 pop. 19,950), capital of the Isle of Man, Great Britain. It is a popular resort, connected by rail to Ramsey and Port Erin, on the Irish Sea. Tourism is the chief industry. L. Ludwig Ludwig. For German rulers thus named, use Louis. , 416/ 441-4320 or Four Seasons Hotels Inc. Barbara Barbara maid exemplifying personal and domestic neatness. [Br. Lit.: Old Curiosity Shop] See : Orderliness Henderson Henderson. 1 City (1990 pop. 25,945), seat of Henderson co., NW Ky., on the Ohio River, in an oil, coal, tobacco, corn, and livestock area; founded 1797, inc. as a city 1867. , 416/ 441 4408 |
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