BOSTON, Nov. 12, 2010 (GLOBE NEWSWIRE) -- Sonesta International Hotels Corporation (Nasdaq:SNSTA) today reported a net loss of $589,000, or $(0.16) per share, in the quarter ended September 30, 2010, compared to net income of $27,379,000, or $7.41 per share, in the quarter ended September 30, 2009. Operating revenues, excluding other revenues from managed and affiliated properties, were $17,737,000 in the 2010 quarter, compared to $14,517,000 in the 2009 quarter. The Company had an operating loss of $443,000 in the third quarter of 2010, compared to operating income of $148,000 during the same period in 2009.
For the nine-month period ended September 30, 2010, net loss was $1,124,000, or $(0.30) per share, compared to net income of $25,058,000, or $6.78 per share, for the nine-month period ended September 30, 2009. Operating revenues, excluding other revenues from managed and affiliated properties, were $51,638,000 in the 2010 period, compared to $44,117,000 in 2009. Operating losses were $9,000 during the first nine months of 2010, compared to operating losses of $1,889,000 in the first nine months of 2009.
Included in the third quarter of 2009 was a pre-tax gain of $41,843,000 related to the dissolution of a development partnership, in which the Company owned a 50% limited partnership interest. The partnership sold its assets, comprising the former Sonesta Beach Resort Key Biscayne, in September 2009. The increase in operating loss during the 2010 third quarter was primarily due to a $611,000 loss incurred during the third quarter of 2010 at Sonesta Bayfront Hotel Coconut Grove. The Company has operated this condominium hotel under a management agreement since its opening in 2002, but acquired the hotel on July 1, 2010. The loss was in line with the Company's expectations. The third quarter is traditionally the slowest quarter for hotels in South Florida.
Excluding the $41,483,000 pre-tax gain on the Key Biscayne transaction, the Company recorded a pre-tax loss of $3,693,000 during the first nine months of 2009 compared to a pre-tax loss of $1,630,000 during the first nine months of 2010, an improvement of $2,063,000. Business levels at the Company's hotels in Boston and New Orleans improved substantially during the first nine months of 2010 compared to 2009.
For full details on our results for the third quarter of 2010 please refer to our Report on Form 10-Q for the quarterly period ended September 30, 2010, which was filed on November 11, 2010. This report may be accessed through our website, Sonesta.com.
The Sonesta International Hotels Corporation logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=7017
| SONESTA INTERNATIONAL HOTELS CORPORATION | ||||
| Financial Summary | ||||
| (000 omitted except for per share data) | Three months ended | Nine months ended | ||
| September 30 | September 30 | |||
| 2010 | 2009 | 2010 | 2009 | |
| Operating revenues | $17,737 | $14,517 | $51,638 | $44,117 |
| Other revenues from managed and affiliated properties | 330 | 1,045 | 3,019 | 3,348 |
| Total revenues | 18,067 | 15,562 | 54,657 | 47,465 |
| Costs and expenses, including depreciation and amortization | (18,180) | (14,369) | (51,647) | (46,006) |
| Other expenses from managed and affiliated properties | (330) | (1,045) | (3,019) | (3,348) |
| Total expenses | (18,510) | (15,414) | (54,666) | (49,354) |
| Operating income (loss) | (443) | 148 | (9) | (1,889) |
| Other income (deductions): | ||||
| Interest expense | (645) | (718) | (1,750) | (2,152) |
| Interest income | 70 | 124 | 195 | 332 |
| Gain (loss) on sales of assets and dissolution of development partnership | 0 | 41,876 | (60) | 41,874 |
| Other income (deductions) | 6 | 3 | (6) | (15) |
| (569) | 41,285 | (1,621) | 40,039 | |
| Income (loss) before income taxes | (1,012) | 41,433 | (1,630) | 38,150 |
| Federal, foreign and state income tax expense (benefit) | (423) | 14,054 | (506) | 13,092 |
| Net income (loss) | ($589) | $27,379 | ($1,124) | $25,058 |
| Net income (loss) per share of common stock | ($0.16) | $7.41 | ($0.30) | $6.78 |
| Average number of common shares outstanding | 3,698 | 3,698 | 3,698 | 3,698 |