BOSTON, May 14, 2007 (PRIME NEWSWIRE) -- Sonesta International Hotels Corporation (Nasdaq:SNSTA) today reported a net loss of $821,000, or $(0.22) per share, in the quarter ended March 31, 2007, compared to net income of $10,000, or $0.003 per share, in the quarter ended March 31, 2006. Revenues, excluding other revenues from managed and affiliated properties, were $15,383,000 in the 2007 quarter, compared to $23,938,000 in the 2006 quarter. The Company had an operating loss of $737,000 in the first quarter of 2007, compared to operating income of $591,000 during the same period in 2006.
The $8,555,000 decrease in operating revenues during the 2007 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 $9,594,000 during the 2006 first quarter. A partnership, in which the Company is a 50% owner, intends to redevelop the hotel's site. The decrease in operating income of $1,328,000 also resulted from the aforementioned closure of Sonesta Beach Resort Key Biscayne. In the 2006 first quarter, which traditionally was the most profitable quarter, the hotel reported operating income of $1,773,000. Excluding Key Biscayne, the combined operating loss from Royal Sonesta Hotel Boston (Cambridge), Royal Sonesta Hotel New Orleans and from management activities decreased by $445,000 in the 2007 first quarter compared to last year.
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 March 31 2007 2006 Operating revenues $ 15,383 $ 23,938 Other revenues from managed and affiliated properties 4,900 4,312 -------- -------- Total revenues 20,283 28,250 Costs and expenses, including depreciation and amortization (16,120) (23,347) Other expenses from managed and affiliated properties (4,900) (4,312) -------- -------- Total expenses (21,020) (27,659) Operating income (loss) (737) 591 Other income (deductions): Interest expense (743) (743) Interest income 397 374 Other income 2 10 -------- -------- (344) (359) Income (loss) before income taxes (1,081) 232 Federal, foreign and state income tax expense (benefit) (260) 222 -------- -------- Net income (loss) ($ 821) $ 10 Income (loss) per share of common stock ($ 0.22) $ 0.003 Average number of common shares outstanding 3,698 3,698