BOSTON, March 29, 2010 (GLOBE NEWSWIRE) -- Sonesta International Hotels Corporation (Nasdaq:SNSTA) today reported net income for the quarter ended December 31, 2009 of $219,000, or $0.06 per share, compared to a net loss of $308,000, or $(0.09) per share, for the quarter ended December 31, 2008. Revenues, excluding other revenues from managed and affiliated properties, were $16,341,000 in the fourth quarter of 2009, compared to $16,934,000 in the same period in 2008.
Net income for the year 2009 was $25,277,000, or $6.84 per share, compared to net income of $4,080,000, or $1.10 per share, in 2008. Operating revenues, excluding other revenues from managed and affiliated properties, were $60,458,000 in 2009, compared to $71,552,000 in 2008. The Company reported an operating loss of $951,000 in 2009, compared to operating income of $6,671,000 in 2008.
Revenues from Royal Sonesta Hotel Boston and from management activities decreased in the fourth quarter of 2009 compared to 2008. These decreases were partially offset by increased revenues from Royal Sonesta Hotel New Orleans, which saw business rebound in the 2009 fourth quarter. Fourth quarter 2009 net income improved due to better results at Royal Sonesta Hotel New Orleans and lower corporate costs.
During the third quarter of 2009 the Company recorded a pre-tax gain of $41,843,000 on the dissolution of a development partnership in which the Company owned a 50% limited partnership interest. The partnership sold its assets, comprising the former Sonesta Beach Resort Key Biscayne, during September 2009. The Company contributed the Resort to the partnership in April 2005, with the intent to develop a new condominium resort on the Resort site, but due to permitting issues and the deterioration of the real estate market in South Florida these plans did not materialize. Due to the Company's continuing involvement in the development partnership, gain on this transaction was previously deferred.
For full details on our results please refer to our 2009 Annual Report on Form 10-K which was filed on March 29, 2009. This report may be accessed through our website, Sonesta.com.
Sonesta's stock is traded on the NASDAQ stock market under the symbol SNSTA.
The Sonesta International Hotels Corporation logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=7017
| SONESTA INTERNATIONAL HOTELS CORPORATION | ||||
| Financial Summary | ||||
| (000 omitted except for per share data) | Three months ended | Year ended | ||
| December 31 | December 31 | |||
| 2009 | 2008 | 2009 | 2008 | |
| Operating revenues | $16,341 | $16,934 | $60,458 | $71,552 |
| Other revenues from managed and affiliated properties | 1,013 | 1,216 | 4,361 | 8,965 |
| Total revenues | 17,354 | 18,150 | 64,819 | 80,517 |
| Costs and expenses, including depreciation and amortization | (15,403) | (17,484) | (61,409) | (68,160) |
| Other expenses from managed and affiliated properties | (1,013) | (1,216) | (4,361) | (8,965) |
| Total expenses | (16,416) | (18,700) | (65,770) | (77,125) |
| Income from Management Agreement settlement, net | 0 | 0 | 0 | 3,279 |
| Operating income (loss) | 938 | (550) | (951) | 6,671 |
| Other income (deductions): | ||||
| Interest expense | (713) | (737) | (2,865) | (2,970) |
| Interest income | 70 | 257 | 402 | 1,182 |
| Gain (loss) on sales of assets and dissolution of | ||||
| development partnership | 1 | (5) | 41,875 | 576 |
| Other income deductions | (1) | (4) | (16) | (2) |
| (643) | (489) | 39,396 | (1,214) | |
| Income (loss) before income taxes | 295 | (1,039) | 38,445 | 5,457 |
| Federal, foreign and state income tax expense (benefit) | 76 | (731) | 13,168 | 1,377 |
| Net income (loss) | $219 | ($308) | $25,277 | $4,080 |
| Income (loss) per share of common stock | $0.06 | ($0.09) | $6.84 | $1.10 |
| Average number of common shares outstanding | 3,698 | 3,698 | 3,698 | 3,698 |