BOSTON, May 12, 2008 (PRIME NEWSWIRE) -- Sonesta International Hotels Corporation (Nasdaq:SNSTA) today reported net income of $90,000, or $0.02 per share, in the quarter ended March 31, 2008, compared to a net loss of $821,000, or $(0.22) per share, in the quarter ended March 31, 2007. Operating revenues, excluding other revenues from managed and affiliated properties, were $17,798,000 in the 2008 quarter, compared to $15,383,000 in the 2007 quarter. The Company had operating income of $80,000 in the third quarter of 2008, compared to an operating loss of $737,000 during the same period in 2007.
First quarter 2008 revenues improved both at Royal Sonesta Hotel Boston and Royal Sonesta Hotel New Orleans. Income from management activities also improved, mainly due to higher fee income from managed hotels in Florida, and from the Company's collection of managed hotels and cruise vessels in Egypt. Net income in the 2008 first quarter improved due to increased profits from Royal Sonesta Hotel Boston, and improved income from management activities. In addition, the 2008 first quarter result benefited from a $422,000 pretax gain on the sale of an asset.
For full details on the 2008 first quarter results, we refer to our quarterly report on Form 10-Q for the quarter ended March 31, 2008, which was filed on May 12, 2008. This report may be accessed through our website, Sonesta.com.
Sonesta's stock is traded on the NASDAQ Global stock market under the symbol SNSTA.
SONESTA INTERNATIONAL HOTELS CORPORATION
Financial Summary
(000 omitted except for per share data) Three months ended
March 31
2008 2007
Operating revenues $17,798 $15,383
Other revenues from managed
and affiliated properties 5,117 4,900
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Total revenues 22,915 20,283
Costs and expenses, including
depreciation and amortization (17,718) (16,120)
Other expenses from managed
and affiliated properties (5,117) (4,900)
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Total expenses (22,835) (21,020)
Operating income (loss) 80 (737)
Other income (deductions):
Interest expense (747) (743)
Interest income 371 397
Gain on sales of assets 422 --
Foreign exchange gain 7 2
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53 (344)
Income (loss) before income taxes 133 (1,081)
Federal, foreign and state income tax
expense (benefit) 43 (260)
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Net income (loss) $90 ($821)
Income (loss) per share of common stock $0.02 ($0.22)
Average number of common shares outstanding 3,698 3,698