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Allied Hotel Properties Inc. ("Allied", stock symbol AHP) has reported its financial results for the year ended December 31, 1999.
Allied completed a corporate reorganization with King George Development Corporation effective October 21, 1999. The acquisition was accounted for as a reverse takeover by Allied, such that the consolidated financial statements reflect the results of operations of Allied for a full year and the operations of the merged company for the period from October 21, 1999 to December 31, 1999.
Allied commenced operations on April 30, 1998 when it acquired interests in six hotel properties as part of a corporate reorganization. Consequently, 1999 was Allied's first full year of operations, and comparative figures for 1998 reflect only the operations over an eight month period from May 1, 1998 to December 31, 1998.
Revenues were $65.3 million and gross profit was $36.0 million for the year, up from revenues of $44.3 million and gross profit of $25.9 million for the previous period. Operating expenses totalled $31.0 million, resulting in operating income of $5.0 million, down from $6.8 million in 1998. The decrease in operating income was principally the result of major renovations at two of Allied's hotels in Vancouver and Toronto. Interest on long-term debt was $10.7 million, resulting in a loss before taxes and non-controlling interest of $5.7 million. Net loss for the year was $4.8 million.
Allied's Annual General Meeting will be held at 10 am on Wednesday, May 31, 2000 in the York Room, Crowne Plaza Hotel Georgia, Vancouver, B.C.
Allied is a growth oriented hotel ownership and management company with hotel properties in Greater Vancouver, Edmonton and Toronto. Its hotel portfolio currently consists of: Crowne Plaza Hotel Georgia, Crowne Plaza Chateau Lacombe, Crowne Plaza Toronto Don Valley Hotel, Delta Vancouver Suites, Delta Pacific Resort & Conference Centre, Delta Vancouver Airport and Holiday Inn Vancouver Downtown Hotel. Interested parties can find further information at www.alliedhotels.com.
On behalf of the Board of Directors:
Mr. Ronald G. Erdman
President and Chief Executive Officer
For more information please contact:
Allied Hotel Properties Inc.
Tel: (604) 689-9318
Fax: (604) 689-9332
e-mail: info@alliedhotels.com
THE CANADIAN VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
ALLIED HOTEL PROPERTIES INC.
(formerly King George Development Corporation)
Consolidated Balance Sheets
December 31, 1999 and 1998
(in thousands of dollars)
1999 1998
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Assets
Current assets:
Cash and cash equivalents $ 948 $ 2,170
Accounts receivable 2,629 1,708
Taxes recoverable 202 -
Inventories 1,033 840
Prepaid expenses 450 216
Land held for resale 13,800 -
Due from affiliated companies - 100
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19,062 5,034
Due from affiliated companies - 17,456
Income-producing properties 178,555 142,106
Investments 1,359 1,354
Deferred costs, net of amortization 1,324 2,122
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$ 200,300 $ 168,072
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Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable and accrued
liabilities $ 11,024 $ 6,107
Taxes payable - 238
Current portion of deferred revenue 228 129
Current portion of long-term debt 12,828 8,965
Current portion of capital
lease obligation 403 224
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24,483 15,663
Due to affiliated companies 6,279 17,323
Deferred revenue 1,932 621
Long-term debt 143,300 131,952
Capital lease obligation 1,172 915
Deferred income taxes 711 842
Non-controlling interest 6,655 7,048
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184,532 174,364
Shareholders' equity (deficiency):
Share capital 28,642 1,753
Deficit (12,874) (8,045)
15,768 (6,292)
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$ 200,300 $ 168,072
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ALLIED HOTEL PROPERTIES INC.
(formerly King George Development Corporation)
Consolidated Statements of Operations and Deficit
Years ended December 31, 1999 and 1998
(in thousands of dollars)
1999 1998
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Revenues:
Rooms $ 45,133 $ 31,287
Food and beverage 15,977 10,223
Other 4,170 2,832
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65,280 44,342
Cost of sales:
Rooms 13,602 8,535
Food and beverage 14,205 8,814
Other 1,463 1,006
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29,270 18,355
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Gross profit 36,010 25,987
Operating expenses:
Selling, general and administrative 18,645 10,215
Management fees 1,970 3,225
Taxes and insurance 4,994 3,138
Depreciation and amortization 5,409 2,656
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31,018 19,234
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Operating income 4,992 6,753
Other expenses (income):
Interest on long-term debt 10,669 6,969
Equity in (income) loss of investees (5) 51
Other 22 209
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10,686 7,229
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Loss before income taxes and
non-controlling interest 5,694 476
Income taxes (recovery):
Current (341) 305
Deferred (131) 123
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(472) 428
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Loss before non-controlling interest 5,222 904
Non-controlling interest (393) 4
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Net loss 4,829 908
Deficit, beginning of year
As previously stated 8,533 -
Adjustment to reflect changes
in accounting for depreciation (488) -
As restated 8,045 -
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Deemed distribution to related
parties - 7,137
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Deficit, end of year $ 12,874 $ 8,045
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