-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Aj2JcuD5+KUCdKGdrjRJLBYCaNpoPnQZl7Hiff2PB56BL64vPf+0bIzjHtNCf3CA sdK6AJfgTT6A7xNp0qv0Hg== 0000950137-04-003831.txt : 20040510 0000950137-04-003831.hdr.sgml : 20040510 20040510160104 ACCESSION NUMBER: 0000950137-04-003831 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20040510 ITEM INFORMATION: ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 20040510 FILER: COMPANY DATA: COMPANY CONFORMED NAME: HAMMONS JOHN Q HOTELS INC CENTRAL INDEX KEY: 0000930796 STANDARD INDUSTRIAL CLASSIFICATION: HOTELS & MOTELS [7011] IRS NUMBER: 431695093 STATE OF INCORPORATION: DE FISCAL YEAR END: 0101 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-13486 FILM NUMBER: 04793164 BUSINESS ADDRESS: STREET 1: 300 JOHN Q HAMMONS PKWY STE 900 CITY: SPRINGFIELD STATE: MO ZIP: 65806 BUSINESS PHONE: 4178644300 MAIL ADDRESS: STREET 1: 300 JOHN Q HAMMONS PKWY STREET 2: SUITE 900 CITY: SPRINGFIELD STATE: MO ZIP: 65806 8-K 1 c85373e8vk.txt CURRENT REPORT SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report (Date of earliest event reported): May 10, 2004 JOHN Q. HAMMONS HOTELS, INC. (Exact name of registrant as specified in its charter) DELAWARE 43-1695093 (State or other jurisdiction of incorporation (IRS Employer or organization) Identification No.) 300 JOHN Q. HAMMONS PARKWAY SUITE 900 SPRINGFIELD, MO 65806 (Address of principal executive offices) (417) 864-4300 (Registrant's telephone number, including area code) NOT APPLICABLE (Former name or former address, if changed since last report) ITEM 7. EXHIBITS. Exhibit No. Exhibit ----------- ------- 99.1 Press Release Dated May 10, 2004, issued by the registrant ITEM 12. RESULTS OF OPERATIONS AND FINANCIAL CONDITION. Attached as Exhibit 99.1, and incorporated herein by reference, is a copy of the registrant's first quarter 2004 earnings press release dated May 10, 2004. 2 SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. JOHN Q. HAMMONS HOTELS, INC. By: /s/ Paul E. Muellner ----------------------------------- Name: Paul E. Muellner Title: Chief Financial Officer Date: May 10, 2004 3 EXHIBIT INDEX Exhibit No. Exhibit ----------- ------- 99.1 Press Release Dated May 10, 2004 issued by John Q. Hammons Hotels, Inc. 4 EX-99.1 2 c85373exv99w1.txt PRESS RELEASE EXHIBIT 99.1 Contact: Paul Muellner FOR IMMEDIATE RELEASE Chief Financial Officer John Q. Hammons Hotels, Inc. 417-864-4300 JOHN Q. HAMMONS HOTELS, INC. REPORTS FIRST QUARTER BASIC EARNINGS OF $0.85 PER SHARE (SPRINGFIELD, MO., May 10, 2004) ---- John Q. Hammons Hotels, Inc. (AMEX: JQH) today reported results for the first quarter of 2004. FIRST QUARTER RESULTS Basic earnings per share for the three months ended April 2, 2004 were $0.85, compared to earnings per share of $0.04 for the three months ended April 4, 2003. Net income for the 2004 three months was $4.3 million, compared to net income of $0.2 million for the 2003 quarter. Net income for the 2004 quarter, includes $3.3 million for the recapture of the limited partner's losses we absorbed in the fourth quarter of 2003. An additional $0.5 million must be recaptured before the limited partner can be allocated future earnings in minority interest. The following represents a reconciliation of the net income, as reported, to the net income, as adjusted (in thousands): THREE MONTHS ENDED APR. 2, 2004 APR. 4, 2003 ------------ ------------ Net income, as reported $ 4,349 $207 Deductions: Reallocation of minority interest earnings (3,322) - ----------- ----------- Net income, as adjusted $ 1,027 $207 =========== =========== Total revenues for the 2004 quarter were $114.4 million, an increase of 3.9% compared to the 2003 quarter. We produced EBITDA for the 2004 quarter of $33.3 million, up 8.5% compared to $30.7 million in the 2003 quarter. EBITDA margins (EBITDA to total revenues) increased to 29.1% for the 2004 quarter compared to 27.9% in 2003, primarily as a result of reductions in payroll, property taxes and insurance versus the 2003 quarter (See attached table for reconciliation of net income to EBITDA and for the definition of EBITDA). Revenue Per Available Room (RevPAR) was $66.33 for the 2004 quarter, up 4.1% from the prior year's level of $63.69. EXECUTIVE COMMENTS "We were extremely pleased with our results this quarter," stated Mr. John Q. Hammons, Chairman and Chief Executive Officer, "The lodging industry appears to be improving and our Company should benefit." FINANCING AND INVESTING ACTIVITIES Since the beginning of 2003, we have reduced total debt by over $27 million, including scheduled principal amortization. Our current portion of long-term debt ($7.3 million) is attributable to scheduled principal amortization on various individual hotel mortgages. OPERATIONS OUTLOOK We forecast that the industry will continue recovery throughout 2004, generating RevPAR and EBITDA above our 2003 levels. This recovery should enhance our cash generation and produce favorable results as we focus on operational efficiencies. Although we are not developing new hotels, Mr. Hammons personally has numerous projects in various stages of development, which we will manage upon completion, including properties in St. Charles and Springfield, Missouri; Junction City, Kansas; Frisco, Texas; Albuquerque, New Mexico and North Charleston, South Carolina. John Q. Hammons Hotels, Inc. is a leading independent owner and manager of affordable upscale, full service hotels located primarily in key secondary markets. We own 47 hotels located in 20 states, containing 11,630 guest rooms or suites, and manage 13 additional hotels located in seven states, containing 3,094 guest rooms or suites. The majority of these 60 hotels operate under the Embassy Suites, Holiday Inn and Marriott trade names. Most of our hotels are located near a state capitol, university, convention center, corporate headquarters, office park or other stable demand generator. A copy of this press release announcing our earnings as well as other financial information will be available in the Investor Relations section of our website at www.jqhhotels.com. *** NOTE - FORWARD-LOOKING STATEMENTS: This press release contains "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934, regarding, among other things, our operations outlook, business strategy, prospects and financial position. These statements contain the words "believe," "anticipate," "estimate," "expect," "forecast," "project," "intend," "may," "will," and similar words. These forward-looking statements are not guarantees of future performance, and involve known and unknown risks, uncertainties and other factors that may cause our actual results to be materially different from any future results expressed or implied by such forward-looking statements. Such factors include, among others: o General economic conditions, including the duration and severity of the current economic slowdown and the pace at which the lodging industry adjusts to the continuing war on terrorism; o The impact of any serious communicable diseases on travel; o Competition; o Changes in operating costs, particularly energy and labor costs; o Unexpected events, such as the September 11, 2001 terrorist attacks, or outbreaks of war; o Risks of hotel operations, such as hotel room supply exceeding demand, increased energy and other travel costs and general industry downturns; o Seasonality of the hotel business; o Cyclical over-building in the hotel and leisure industry; o Requirements of franchise agreements, including the right of some franchisors to immediately terminate their respective agreements if we breach certain provisions; and o Costs of complying with applicable state and federal regulations. These risks and uncertainties should be considered in evaluating any forward-looking statements contained in this press release. We undertake no obligation to update or revise publicly any forward looking statement, whether as a result of new information, future events or otherwise, other than as required by law. - - Tables Attached - - JOHN Q. HAMMONS HOTELS, INC. AND COMPANIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (000'S omitted, except share data)
THREE MONTHS ENDED APRIL 2, 2004 APRIL 4, 2003 ------------- ------------- REVENUES: Rooms $ 70,188 $ 67,403 Food and beverage 30,074 29,139 Meeting room rental, related party management fee and other 14,114 13,588 ----------- ----------- Total revenues 114,376 110,130 OPERATING EXPENSES: Direct operating costs and expenses: Rooms 17,284 16,280 Food and beverage 22,136 21,906 Other 616 692 General, administrative, sales and management service expenses 36,357 36,075 Repairs and maintenance 4,706 4,453 Depreciation and amortization 11,931 12,481 ----------- ----------- Total operating expenses 93,030 91,887 ----------- ----------- INCOME FROM OPERATIONS 21,346 18,243 OTHER INCOME (EXPENSE): Other income - 175 Interest expense and amortization of deferred financing fees, net of $118 and $178 of interest income in April 2, 2004 and April 4, 2003, respectively (16,967) (17,433) ----------- ----------- INCOME BEFORE MINORITY INTEREST AND PROVISION FOR INCOME TAXES 4,379 985 Minority interest in income of partnership - (748) ----------- ----------- INCOME BEFORE PROVISION FOR INCOME TAXES 4,379 237 Provision for income taxes (30) (30) ----------- ----------- NET INCOME ALLOCABLE TO THE COMPANY $ 4,349 $ 207 =========== =========== BASIC EARNINGS PER SHARE: Net earnings allocable to Company $ 0.85 $ 0.04 =========== =========== BASIC WEIGHTED AVERAGE SHARES OUTSTANDING 5,111,270 5,083,829 =========== =========== DILUTED EARNINGS PER SHARE: Net earnings allocable to Company $ 0.74 $ 0.04 =========== =========== DILUTED WEIGHTED AVERAGE SHARES OUTSTANDING 5,856,746 5,151,081 =========== ===========
JOHN Q. HAMMONS HOTELS, INC. AND COMPANIES (AMOUNTS IN THOUSANDS EXCEPT EARNINGS PER SHARE AND OPERATING DATA)
THREE MONTHS ENDED APRIL 2, 2004 APRIL 4, 2003 -------------- -------------- RECONCILIATION OF NET INCOME TO EBITDA: Net income $ 4,349 $ 207 Provision for income taxes 30 30 Minority interest in losses of partnership 0 748 Interest expense and amortization of deferred financing fees, net 16,967 17,433 Other income 0 (175) Depreciation and amortization 11,931 12,481 -------- -------- EBITDA (a) $ 33,277 $ 30,724 ======== ======== EBITDA MARGIN (% OF TOTAL REVENUE) 29.1% 27.9%
(a) EBITDA is defined as income before interest income and expense, income tax expense, depreciation and amortization, minority interest, extinguishment of debt costs and other income. Management considers EBITDA to be one measure of operating performance for the Company before debt service that provides a relevant basis for comparison, and EBITDA is presented to assist investors in analyzing the performance of the Company. This information should not be considered as an alternative to any measure of performance as promulgated under accounting principles generally accepted in the United States, nor should it be considered as an indicator of the overall financial performance of the Company. The Company's calculation of EBITDA may be different from the calculation used by other companies and, therefore, comparability may be limited.
THREE MONTHS ENDED APRIL 2, 2004 APRIL 4, 2003 ------------- ------------- TOTAL OWNED HOTELS: Occupancy 65.5% 62.8% Average Room Rate $ 101.29 $ 101.42 RevPAR (Room Revenue per available room) $ 66.33 $ 63.69
APR. 2, JAN. 2, JAN. 3, 2004 2004 2003 -------- -------- -------- SELECTED BALANCE SHEET DATA Current Assets $ 75,695 $ 54,022 $ 52,020 Total Assets $835,459 $822,183 $859,972 Current Liabilities Excluding Debt $ 51,808 $ 41,043 $ 40,789 Current Portion of Long-Term Debt $ 7,338 $ 7,423 $ 13,683 Total Long-Term Debt Including Current Portion $778,940 $781,072 $806,342 Total Cash and Equivalents, Restricted Cash and Marketable Securities $ 82,066 $ 61,222 $ 50,368 Net Debt $696,874 $719,850 $755,974
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