BOSTON, Nov. 13, 2007 (PRIME NEWSWIRE) -- Sonesta International Hotels Corporation (Nasdaq:SNSTA) today reported net income of $442,000, or $0.12 per share, in the quarter ended September 30, 2007, compared to a net loss of $2,196,000, or $(0.59) per share, in the quarter ended September 30, 2006. Operating revenues, excluding other revenues from managed and affiliated properties, were $15,599,000 in the 2007 quarter, compared to $15,618,000 in the 2006 quarter. The Company had operating income of $809,000 in the third quarter of 2007, compared to an operating loss of $3,104,000 during the same period in 2005.
For the nine month period ended September 30, 2007, net income was $383,000, or $0.10 per share, compared to a net loss of $2,419,000, or $(0.65) per share, for the nine month period ended September 30, 2006. Operating revenues, excluding other revenues from managed and affiliated properties, were $49,100,000 in the 2007 period, compared to $62,395,000 in 2006. Operating income was $1,708,000 during the first nine months of 2007 compared to an operating loss of $2,398,000 in the first nine months of 2006.
Operating revenues during the 2007 third quarter increased at Royal Sonesta Hotel Boston (Cambridge) and Royal Sonesta Hotel New Orleans. Management fee income from the Company's managed properties in Florida and Egypt also improved. Sonesta Beach Resort Key Biscayne, which closed August 31, 2006, reported revenues in the 2006 third quarter of $2,710,000.
Operating income improved by $3,913,000 during the 2007 third quarter compared to last year. Royal Sonesta Hotel Boston (Cambridge) reported improved operating income of $803,000 during the 2007 third quarter compared to last year. Operating losses from management activities decreased as a result of higher fee income, and lower corporate marketing expenses. The overall third quarter operating loss in 2006 was affected by the $2,381,000 operating loss for that quarter attributable to Sonesta Beach Resort Key Biscayne, which closed on August 31, 2006. Much of that operating loss was due to higher depreciation expense. A partnership in which the Company is a 50% owner intends to redevelop the hotel's site.
Sonesta's stock is traded on the NASDAQ stock market under the symbol SNSTA.
SONESTA INTERNATIONAL HOTELS CORPORATION
Financial Summary
(000 omitted except for Three months ended Nine months ended
per share data) September 30 September 30
2007 2006 2007 2006
Operating revenues $15,599 $15,618 $49,100 $62,395
Other revenues from
managed and affiliated
properties 4,537 8,063 14,115 16,474
------- ------- ------- -------
Total revenues 20,136 23,681 63,215 78,869
Costs and expenses,
including depreciation
and amortization (14,790) (18,722) (47,392) (64,793)
Other expenses from
managed and affiliated
properties (4,537) (8,063) (14,115) (16,474)
------- ------- ------- -------
Total expenses (19,327) (26,785) (61,507) (81,267)
Operating income (loss) 809 (3,104) 1,708 (2,398)
Other income
(deductions):
Interest expense (759) (759) (2,253) (2,253)
Interest income 486 439 1,270 1,155
Gain on sales of assets 198 -- 214 4
Other income
(deductions) 14 (3) 17 29
------- ------- ------- -------
(61) (323) (752) (1,065)
Income (loss) before income
taxes 748 (3,427) 956 (3,463)
Federal, foreign and
state income tax
expense (benefit) 306 (1,231) 573 (1,044)
------- ------- ------- -------
Net income (loss) $442 ($2,196) $383 ($2,419)
Net income (loss) per
share of common stock $0.12 ($0.59) $0.10 ($0.65)
Average number of
common shares
outstanding 3,698 3,698 3,698 3,698