BOSTON, March 27, 2009 (GLOBE NEWSWIRE) -- Sonesta International Hotels Corporation (Nasdaq:SNSTA) today reported a net loss for the quarter ended December 31, 2008 of $308,000, or $(0.09) per share, compared to net income of $954,000, or $0.25 per share, for the quarter ended December 31, 2007. Revenues, excluding other revenues from managed and affiliated properties, were $16,934,000 in the fourth quarter of 2008, compared to $18,838,000 in the same period in 2007.
Net income for the year 2008 was $4,080,000, or $1.10 per share, compared to net income of $1,337,000, or $0.36 per share, in 2007. Operating revenues, excluding other revenues from managed and affiliated properties, were $71,552,000 in 2008, compared to $67,938,000 in 2007. The Company reported operating income of $6,671,000 in 2008, compared to operating income of $2,228,000 in 2007.
Operating revenues and income during the 2008 fourth quarter decreased at both Royal Sonesta Boston and Royal Sonesta New Orleans, compared to the 2007 fourth quarter. The economic downturn affected demand in both locations, primarily from the corporate group and convention market segments. Income from management activities also decreased in the 2008 fourth quarter, due to termination by the Company of the management agreement for Trump International Sonesta Beach Resort Sunny Isles. 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 this hotel.
For full details on our 2008 results please refer to our 2008 Annual Report on Form 10-K which was filed on March 27, 2009. 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 Year ended
December 31 December 31
2008 2007 2008 2007
Operating revenues $16,934 $18,838 $71,552 $67,938
Other revenues from managed
and affiliated properties 1,216 4,632 8,965 18,747
-------- -------- -------- --------
Total revenues 18,150 23,470 80,517 86,685
Costs and expenses, including
depreciation and amortization (17,484) (18,318) (68,160) (65,710)
Other expenses from managed
and affiliated properties (1,216) (4,632) (8,965) (18,747)
-------- -------- -------- --------
Total expenses (18,700) (22,950) (77,125) (84,457)
Income from Management
Agreement settlement, net 0 0 3,279 0
-------- -------- -------- --------
Operating income (loss) (550) 520 6,671 2,228
Other income (deductions):
Interest expense (737) (759) (2,970) (3,012)
Interest income 257 450 1,182 1,720
Gain (loss) on sales of assets (5) 0 576 214
Other income (deductions) (4) 19 (2) 36
-------- -------- -------- --------
(489) (290) (1,214) (1,042)
Income (loss) before income
taxes (1,039) 230 5,457 1,186
Federal, foreign and state
income tax expense (benefit) (731) (724) 1,377 (151)
-------- -------- -------- --------
Net income (loss) ($308) $954 $4,080 $1,337
Income (loss) per share of
common stock ($0.09) $0.25 $1.10 $0.36
Average number of common shares
outstanding 3,698 3,698 3,698 3,698