BOSTON, May 14, 2007 (PRIME NEWSWIRE) -- Sonesta International Hotels Corporation (Nasdaq:SNSTA) today reported a net loss of $821,000, or $(0.22) per share, in the quarter ended March 31, 2007, compared to net income of $10,000, or $0.003 per share, in the quarter ended March 31, 2006. Revenues, excluding other revenues from managed and affiliated properties, were $15,383,000 in the 2007 quarter, compared to $23,938,000 in the 2006 quarter. The Company had an operating loss of $737,000 in the first quarter of 2007, compared to operating income of $591,000 during the same period in 2006.
The $8,555,000 decrease in operating revenues during the 2007 fourth quarter, compared to last year, was entirely due to the closure, on August 31, 2006, of Sonesta Beach Resort Key Biscayne. Revenues of this hotel were $9,594,000 during the 2006 first quarter. A partnership, in which the Company is a 50% owner, intends to redevelop the hotel's site. The decrease in operating income of $1,328,000 also resulted from the aforementioned closure of Sonesta Beach Resort Key Biscayne. In the 2006 first quarter, which traditionally was the most profitable quarter, the hotel reported operating income of $1,773,000. Excluding Key Biscayne, the combined operating loss from Royal Sonesta Hotel Boston (Cambridge), Royal Sonesta Hotel New Orleans and from management activities decreased by $445,000 in the 2007 first quarter compared to last year.
Sonesta's stock is traded on the NASDAQ stock market under the symbol SNSTA.
SONESTA INTERNATIONAL HOTELS CORPORATION
Financial Summary
(000 omitted except for per share data) Three months ended
March 31
2007 2006
Operating revenues $ 15,383 $ 23,938
Other revenues from managed and
affiliated properties 4,900 4,312
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Total revenues 20,283 28,250
Costs and expenses, including depreciation
and amortization (16,120) (23,347)
Other expenses from managed and
affiliated properties (4,900) (4,312)
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Total expenses (21,020) (27,659)
Operating income (loss) (737) 591
Other income (deductions):
Interest expense (743) (743)
Interest income 397 374
Other income 2 10
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(344) (359)
Income (loss) before income taxes (1,081) 232
Federal, foreign and state income tax
expense (benefit) (260) 222
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Net income (loss) ($ 821) $ 10
Income (loss) per share of common stock ($ 0.22) $ 0.003
Average number of common shares outstanding 3,698 3,698