BOSTON, March 26, 2007 (PRIME NEWSWIRE) -- Sonesta International Hotels Corporation (Nasdaq:SNSTA) today reported a net loss for the quarter ended December 31, 2006 of $1,104,000, or ($0.30) per share, compared to a net loss of $1,898,000, or ($0.51) per share, for the quarter ended December 31, 2005. Revenues, excluding other revenues from managed and affiliated properties, were $15,200,000 in the fourth quarter of 2006, compared to $20,872,000 in the same period in 2005.
Net loss for the year 2006 was $3,523,000, or $(0.95) per share, compared to net income of $4,668,000, or $1.26 per share, in 2005. Operating revenues, excluding other revenues from managed and affiliated properties were $77,595,000 in 2006, compared to $88,125,000 in 2005. The Company reported an operating loss of $3,829,000 in 2006, compared to an operating loss of $1,905,000 in 2005.
The $5,672,000 decrease in operating revenues during the 2006 fourth quarter, compared to last year, was entirely due to the closure, on August 31, 2006, of Sonesta Beach Resort Key Biscayne. Revenues of this hotel were $5,889,000 during the 2005 fourth quarter. A partnership, in which the Company is a 50% owner, intends to redevelop the hotel site. Operating losses during the 2006 fourth quarter decreased by $552,000, compared to the 2005 fourth quarter, due to increased operating income from Royal Sonesta Hotel Boston (Cambridge).
Earnings for the year 2005 benefited from:
1. Non-recurring tax benefits recorded in 2005 of $5,227,000.
2. A pretax gain on the sale of land of $3,950,000.
For full details on the 2006 results, we refer to our 2006 Annual Report on Form 10-K, which was filed on March 26, 2007. This report may be accessed through our website, Sonesta.com.
Sonesta's stock is traded on the NASDAQ stock market under the symbol SNSTA.
SONESTA INTERNATIONAL HOTELS CORPORATION
Financial Summary
(000 omitted except for
per share data) Three months ended Year ended
December 31 December 31
2006 2005 2006 2005
Operating revenues $ 15,200 $ 20,872 $ 77,595 $ 88,125
Other revenues from
managed and affiliated
properties 4,426 3,683 21,237 14,543
--------- --------- --------- ---------
Total revenues 19,626 24,555 98,832 102,668
Costs and expenses,
including depreciation
and amortization (16,631) (22,855) (81,424) (90,030)
Other expenses from
managed and affiliated
properties (4,426) (3,683) (21,237) (14,543)
--------- --------- --------- ---------
Total expenses (21,057) (26,538) (102,661) (104,573)
Operating loss (1,431) (1,983) (3,829) (1,905)
Other income (deductions):
Interest expense (772) (759) (3,025) (3,965)
Interest income 429 376 1,584 1,129
Gain on sales of assets 10 3 14 4,082
Other income (deductions) 6 (18) 35 (28)
--------- --------- --------- ---------
(327) (398) (1,392) 1,218
Loss before income taxes (1,758) (2,381) (5,221) (687)
Federal, foreign and
state income tax benefit (654) (483) (1,698) (5,355)
--------- --------- --------- ---------
Net loss ($1,104) ($1,898) ($3,523) $ 4,668
Loss per share of common
stock ($ 0.30) ($ 0.51) ($ 0.95) $ 1.26
Average number of common
shares outstanding 3,698 3,698 3,698 3,698