BOSTON, Nov. 12, 2008 (GLOBE NEWSWIRE) -- Sonesta International Hotels Corporation (Nasdaq:SNSTA) today reported net income of $2,792,000, or $0.76 per share, in the quarter ended September 30, 2008, compared to net income of $442,000, or $0.12 per share, in the quarter ended September 30, 2007. Operating revenues, excluding other revenues from managed and affiliated properties, were $16,398,000 in the 2008 quarter, compared to $15,599,000 in the 2007 quarter. The Company had operating income of $4,411,000 in the third quarter of 2008, compared to operating income of $809,000 during the same period in 2007.
For the nine-month period ended September 30, 2008, net income was $4,388,000, or $1.19 per share, compared to net income of $383,000, or $0.10 per share, for the nine-month period ended September 30, 2007. Operating revenues, excluding other revenues from managed and affiliated properties, were $54,618,000 in the 2008 period, compared to $49,100,000 in 2007. Operating income was $7,221,000 during the first nine months of 2008, compared to operating income of $1,708,000 in the first nine months of 2007.
In the 2008 third quarter, the Company recorded pre-tax income of $3,279,000 related to the settlement of a dispute with the owner of Trump International Sonesta Beach Resort in Sunny Isles, Florida. The Company terminated the management agreement for this hotel effective April 1, 2008, and a dispute related to a termination payment was settled in October 2008.
Royal Sonesta Hotel Boston continued to perform well in the 2008 third quarter. Royal Sonesta Hotel New Orleans' results during the third quarter suffered from the effects of Hurricane Gustav. Income from management activities improved, mainly due to higher income from Sonesta Bayfront Hotel Miami, higher income from the Company's managed hotels in Egypt, and higher fee income from hotels in South America and St. Maarten to which the Company has licensed the use of its name.
For full details on the 2008 third quarter results, and the results for the nine-month period ending September 30, 2008, we refer to our report on Form 10-Q for the quarter ended September 30, 2008, which was filed on November 12, 2008. This report may be accessed through our website, Sonesta.com.
SONESTA INTERNATIONAL HOTELS CORPORATION
Financial Summary
(000 omitted except
for per share data) Three months ended Nine months ended
September 30 September 30
2008 2007 2008 2007
Operating revenues $16,398 $15,599 $54,618 $49,100
Other revenues from
managed and
affiliated
properties 1,286 4,537 7,749 14,115
------- ------- ------- -------
Total revenues 17,684 20,136 62,367 63,215
Costs and expenses,
including depreciation
and amortization (15,266) (14,790) (50,676) (47,392)
Other expenses
from managed and
affiliated
properties (1,286) (4,537) (7,749) (14,115)
------- ------- ------- -------
Total expenses (16,552) (19,327) (58,425) (61,507)
Income from Management
Agreement settlement,
net 3,279 0 3,279 0
------- ------- ------- -------
Operating income 4,411 809 7,221 1,708
Other income
(deductions):
Interest expense (744) (759) (2,233) (2,253)
Interest income 312 486 925 1,270
Gain on sales of assets 138 198 581 214
Other income (deductions) (9) 14 2 17
------- ------- ------- -------
(303) (61) (725) (752)
Income before income taxes 4,108 748 6,496 956
Federal, foreign and
state income tax
expense 1,316 306 2,108 573
------- ------- ------- -------
Net income $ 2,792 $ 442 $ 4,388 $ 383
Net income per share
of common stock $ 0.76 $ 0.12 $ 1.19 $ 0.10
Average number of common
shares outstanding 3,698 3,698 3,698 3,698