BOSTON, Aug. 13, 2007 (PRIME NEWSWIRE) -- Sonesta International Hotels Corporation (Nasdaq:SNSTA) today reported net income of $762,000, or $0.21 per share, in the quarter ended June 30, 2007, compared to a net loss of $233,000, or $(0.06) per share, in the quarter ended June 30, 2006. Revenues, excluding other revenues from managed and affiliated properties, were $18,118,000 in the 2007 quarter, compared to $22,839,000 in the 2006 quarter. The Company had operating income of $1,636,000 in the second quarter of 2007, compared to $115,000 during the same period in 2006.
For the six-month period ended June 30, 2007, the net loss was $59,000, or $(0.01) per share, compared to a net loss of $223,000, or $(0.06) per share, for the six-month period ended June 30, 2006. Revenues, excluding other revenues from managed and affiliated properties, were $33,501,000 in the 2007 period, compared to $46,777,000 in 2006. Operating income was $899,000 in the six-month period ended June 30, 2007 compared to $706,000 in 2006.
Income at the Company's Royal Sonesta Hotel Boston (Cambridge) and Royal Sonesta New Orleans increased in the 2007 second quarter compared to a year ago. Sonesta Beach Resort Key Biscayne, which closed for operations on August 31, 2006, recorded an operating loss of $449,000 during the 2006 second quarter, partly due to higher depreciation expense. In April 2005, the Company contributed the land and improvements of Sonesta Beach Resort Key Biscayne to a partnership in which the Company is a 50% limited partner, with the objective to redevelop the hotel site. Income from management activities also improved slightly in the 2007 second quarter due to higher management income from Sonesta Hotel & Suites, Coconut Grove.
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 Six months ended
June 30 June 30
2007 2006 2007 2006
Operating revenues $ 18,118 $ 22,839 $ 33,501 $ 46,777
Other revenues from managed
and affiliated properties 4,678 4,055 9,578 8,367
-------- -------- -------- --------
Total revenues 22,796 26,894 43,079 55,144
Costs and expenses,
including depreciation and
amortization (16,482) (22,724) (32,602) (46,071)
Other expenses from managed
and affiliated properties (4,678) (4,055) (9,578) (8,367)
-------- -------- -------- --------
Total expenses (21,160) (26,779) (42,180) (54,438)
Operating income 1,636 115 899 706
Other income (deductions):
Interest expense (751) (751) (1,494) (1,494)
Interest income 387 342 784 716
Gain on sales of assets 16 0 16 4
Other income 1 26 3 32
-------- -------- -------- --------
(347) (383) (691) (742)
Income (loss) before income
taxes 1,289 (268) 208 (36)
Federal, foreign and
state income tax
provision (benefit) 527 (35) 267 187
-------- -------- -------- --------
Net income (loss) $ 762 ($ 233) ($ 59) ($ 223)
Net income (loss) per share
of common stock $ 0.21 ($ 0.06) ($ 0.01) ($ 0.06)
Average number of common
shares outstanding 3,698 3,698 3,698 3,698