BOSTON, Aug. 14, 2008 (PRIME NEWSWIRE) -- Sonesta International Hotels Corporation (Nasdaq:SNSTA) today reported net income of $1,506,000, or $0.41 per share, in the quarter ended June 30, 2008 compared to net income of $762,000, or $0.21 per share, in the quarter ended June 30, 2007. Revenues, excluding other revenues from managed and affiliated properties, were $20,422,000 in the 2008 quarter, compared to $18,118,000 in the 2007 quarter. The Company had operating income of $2,730,000 in the second quarter of 2008, compared to $1,636,000 during the same period in 2007.
For the six-month period ended June 30, 2008, net income was $1,596,000, or $0.43 per share, compared to a net loss of $59,000, or $(0.01) per share, for the six-month period ended June 30, 2007. Revenues excluding other revenues from managed and affiliated properties were $38,220,000 in the 2008 period, compared to $33,501,000 in 2007. Operating income was $2,810,000 in the six-month period ended June 30, 2008 compared to $899,000 in 2007.
Revenues and income in the 2008 second quarter as well as the first six months of 2008 improved at both Royal Sonesta Hotel Boston and Royal Sonesta Hotel New Orleans. Income from management activities also improved, mainly due to higher fee income from domestic hotels, and from the Company's collection of managed hotels and cruise vessels in Egypt. Results for the first six months of 2008 also benefited from a $422,000 pretax gain on the sale of an asset during the first quarter.
For full details on the 2008 second quarter results, and the results for the six-month period ending June 30, 2008, we refer to our report on Form 10-Q for the quarter ended June 30, 2008, which was filed on August 13, 2008. This report may be accessed through our website, Sonesta.com. 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 Six months ended
per share data) June 30 June 30
2008 2007 2008 2007
Operating revenues $ 20,422 $ 18,118 $ 38,220 $ 33,501
Other revenues from
managed and affil-
iated properties 1,346 4,678 6,463 9,578
-------- -------- -------- --------
Total revenues 21,768 22,796 44,683 43,079
Costs and expenses,
including depreciation
and amortization (17,692) (16,482) (35,410) (32,602)
Other expenses from
managed and affil-
iated properties (1,346) (4,678) (6,463) (9,578)
-------- -------- -------- --------
Total expenses (19,038) (21,160) (41,873) (42,180)
Operating income 2,730 1,636 2,810 899
Other income (deductions):
Interest expense (742) (751) (1,489) (1,494)
Interest income 242 387 613 784
Gain on sales of assets 21 16 443 16
Other income 4 1 11 3
-------- -------- -------- --------
(475) (347) (422) (691)
Income before income taxes 2,255 1,289 2,388 208
Federal, foreign and
state income tax
provision 749 527 792 267
-------- -------- -------- --------
Net income (loss) $ 1,506 $ 762 $ 1,596 ($59)
Net income (loss) per
share of common stock $ 0.41 $ 0.21 $ 0.43 ($0.01)
Average number of
common shares outstanding 3,698 3,698 3,698 3,698