Hotel Operating Statistics
|SPRINGFIELD, Mo.-- Aug. 12, 2003 -- John Q.
Hammons Hotels, Inc. (AMEX:JQH) today reported on its second quarter 2003
Basic earnings per share for the six months ended July 4, 2003 were $0.06, compared to a loss per share of ($0.15) for the six months ended June 28, 2002. Net income for the six months ended July 4, 2003 was $0.3 million, compared to a net loss of ($0.8) million for the same period in 2002. The 2002 six months included a charge of $6.8 million applicable to debt extinguishment costs, primarily related to the refinancing of a significant portion of our long-term debt completed in May of 2002. We produced EBITDA for the six months ended July 4, 2003 of $61.3 million, compared to $65.1 million in the 2002 period (See attached table for reconciliation of net income to EBITDA and for the definition of EBITDA). The decrease was primarily attributable to increases in property insurance, guest frequency program costs and rising natural gas prices.
Total revenues for the 2003 six months were $218.8 million, a decrease of $3.8 million, compared to the same period in 2002. Revenue Per Available Room (RevPAR) was $64.43 for the 2003 six months, virtually equal to the prior year's level of $64.72, while the industry's RevPAR for the first six months of 2003 was down 2.5% from the first half of 2003, to $48.70, as reported by Smith Travel Research.
Second Quarter Results
Basic earnings per share for the three months ended July 4, 2003 were $0.02, compared to a loss per share of ($0.20) for the same period in 2002. Net income was $0.1 million for the 2003 quarter, compared to a loss of ($1.0) million for the 2002 quarter. The 2002 quarter included the debt extinguishment costs discussed above. EBITDA was $30.6 million for the 2003 quarter, down $3.4 million compared to the 2002 second quarter EBITDA of $34.0 million (See attached table for reconciliation of net income to EBITDA and for the definition of EBITDA). The decrease was primarily attributable increases in property insurance, guest frequency program costs and rising natural gas prices.
Total revenues for the 2003 second quarter were $108.7 million, compared to $115.2 million for the 2002 quarter, reflecting the ongoing weakness in the association and corporate group travel segments of the hospitality industry. Our Revenue Per Available Room (RevPAR) was $65.16 for the 2003 second quarter, compared to the prior year's level of $67.58, while the industry's RevPAR for the second quarter of 2003 was down 3.2% compared to the same period in 2002, to $51.31 as reported by Smith Travel Research.
"Although the ongoing weakness in the industry has been difficult, our goal of strengthening our balance sheet has helped to improve the financial picture of this company," stated Mr. John Q. Hammons, Chairman and Chief Executive Officer. "We continue to reduce debt and maintain quality service levels, thereby positioning ourselves for the economic and industry recovery."
We retired a $6.3 million mortgage (Springdale Hampton Inn) at 9.25%, which was due to mature in the fourth quarter of 2003, bringing total debt reduction in the first half of 2003 to $10.1 million. The remaining current portion of long-term debt ($7.7 million) is attributable only to scheduled principal amortization on various individual hotel mortgages.
We forecast that the lingering industry weakness will continue throughout
the third quarter of 2003, generating year-over-year RevPAR comparable
to, or slightly below last year's levels. Despite this weakness, we expect
to continue our cash generation and will maintain our focus on operational
John Q. Hammons Hotels, Inc. owns 47 hotels located in 20 states, containing 11,629 guest rooms or suites, and manage 11 additional hotels located in seven states, containing 2,623 guest rooms or suites. The majority of these 58 hotels operate under the Embassy Suites, Holiday Inn and Marriott trade names. Most of our hotels are located near a state capitol, university, convention center, corporate headquarters, office park or other stable demand generator.
This press release contains "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934, regarding, among other things, our operations outlook, business strategy, prospects and financial position.
John Q. Hammons Hotels, Inc.
Paul Muellner, 417-864-4300
|Also See:||John Q. Hammons Hotels Reports Net Loss of $1,013,000 for 2002 2nd Qtr; RevPAR Down 0.9% Compared to 2001 2nd Qtr / Aug 2002|
|John Q. Hammons Hotels, Inc. Reports Net loss for Year Ending 2002 of $2.8 million, Compared to a Loss of $3.1 million In 2001 / Feb 2003|