IHT THIRD FISCAL QUARTER OPERATING RESULTS IMPROVE
Phoenix, AZ, Dec. 14, 2018 (GLOBE NEWSWIRE) -- InnSuites Hospitality Trust (NYSE American: IHT) IHT reported fiscal third quarter revenues from continuing operations of approximately $1.5 million for the fiscal third quarter three months August 1, 2018 to October 31, 2018 up 15% from revenues of approximately $1.3 million for the same prior year period. IHT reported fiscal year to date revenue from continuing operations of approximately $4.8 million for the nine months period February 1, 2018 to October 31, 2018 up 12% from revenues from continuing operations of approximately $4.3 million for the same prior year period.
Basic earnings per share for the three months ended October 31, 2018 was $0.31 compared with $(0.07) for the three months ended October 31, 2017. Basic earnings per share for the nine months ended October 31, 2018 was $0.16 compared with $0.88 for the nine months ended October 31, 2017. Diluted earning per share for the three months ended October 31, 2018 was $0.23. Diluted earning per share for the nine months period ended October 31, 2018 was $0.12 compared to diluted earnings per share for the nine months period ended October 31, 2017 was $0.65.
On August 15, 2018, IHT, through its wholly owned subsidiary InnSuites Hotels, Inc., entered into an agreement to profitably sell its wholly-owned subsidiary, IBC Hotels, LLC (“IBC”) to a wholly-owned subsidiary of OBASA Capital Investments, Inc., an independent third-party purchaser. The new sales price was approximately $2.75 million resulting in a gain on the sale of IBC of approximately $2.2 million.
On October 24, 2018 through its subsidiary Yuma Hospitality Properties, LLLP, IHT closed on its agreement to sell its Yuma Hospitality Property to Palm Springs Inn, LLC, an unrelated third party, for $16,050,000 resulting in a gain on sale of the Yuma hotel of approximately $11.1 million, net of estimated tax of $0.4 million.
For the 12-month trailing periods November 1, 2017 to October 31, 2018, and November 1, 2016 to October 31, 2017, total revenue from continuing operations was approximately $6.1 million and approximately $5.4 million, respectively. Total net income before non-controlling interest was approximately $9.2 million and approximately $8.2 million, respectively. Total net income/gain from discontinued operations was approximately $12.5 million and approximately $10.2 million, respectively. For the same two 12-month trailing periods, non-cash depreciation and amortization was approximately $1.4 million and $1.9 million, respectively. Net income before non-controlling interest before non-cash depreciation and amortization was approximately $10.6 million and $10.1 million for the same 12-month trailing periods, while basic earnings per share was $0.96 and $0.84 for the same 12-month trailing periods.
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With the exception of historical information, the matters discussed in this news release may include “forward-looking statements” within the meaning of the federal securities laws. All statements regarding the Trust’s review and exploration of potential strategic, operational and structural alternatives and expected associated costs and benefits are forward-looking. Actual developments and business decisions may differ materially from those expressed or implied by such forward-looking statements. Important factors, among others, that could cause the Trust’s actual results and future actions to differ materially from those described in forward-looking statements include the uncertain outcome, impact, effects and results of the Trust’s review of strategic, operational and structural alternatives, and the risks discussed in the Trust’s SEC filings. Forward-looking statements are not guarantees of future performance due to numerous risks and uncertainties such as local, national or international economic and business conditions, including, without limitation, conditions that may, or may continue to, affect public securities markets generally, the hospitality industry or the markets in which we operate or will operate; fluctuations in hotel occupancy rates; changes in room rental rates that may be charged by InnSuites Hotels in response to market rental rate changes or otherwise; seasonality of our business; our ability to sell any of our Hotels at market value, listed sale price or at all; interest rate fluctuations; changes in, or reinterpretations of governmental regulations; competition; availability of credit or other financing; our ability to meet, refinance or extend present and future debt service obligations; insufficient resources to pursue our current strategy; concentration of our investments in the InnSuites Hotels® brand; loss of membership contracts; the financial condition of franchises, brand membership companies and travel related companies; our ability to develop and maintain positive relations with “Best Western Plus” or “Best Western” and potential future franchises or brands; our ability to carry out our strategy, including our strategy regarding IBC Hotels; the Trust’s ability to remain listed on the NYSE American; effectiveness of the Trust’s software program; the need to periodically repair and renovate our Hotels at a cost at or in excess of our standard 4% reserve; our ability to cost effectively integrate any acquisitions with the Trust in a timely manner; increases in the cost of labor, energy, healthcare, insurance and other operating expenses as a result of changed or increased regulation or otherwise; terrorist attacks or other acts of war; outbreaks of communicable diseases attributed to our hotels or impacting the hotel industry in general; natural disasters, including adverse climate changes in the areas where we have or serve hotels; airline strikes; transportation and fuel price increases; adequacy of insurance coverage; data breaches or cybersecurity attacks; and other factors. Such uncertainties are described in greater detail in our filings with the Securities and Exchange Commission. Although we believe our current expectations to be based upon reasonable assumptions, we can give no assurance that our expectations will be attained. The Trust expressly disclaims any obligation to update any forward-looking statement contained in this news release to reflect events or circumstances that may arise after the date hereof, all of which are expressly qualified by the foregoing, other than as required by applicable law.
FOR FURTHER INFORMATION:
Marc Berg, Executive Vice President