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Vancouver, B.C. - Allied Hotel Properties Inc. ("Allied", stock symbol AHP) has reported its financial results for the three months ended March 31, 2002.
Revenues were $10.2 million and gross profit was $4.6 million for the three months ending March 31, 2002, decreasing from $15.6 million and $7.5 million, respectively, from the prior year period. Operating loss of $1.2 million was reported for the three month period, an improvement of 20% from $1.5 million for the same period in 2001. The Company transferred its interest in two hotel properties prior to the end of 2001, accounting for the majority of the decrease in revenues and gross profit. Lower levels of business travel as a result of the general economic decline in North America, in conjunction with the events of September 11th, also contributed to the decrease in revenues in the current year.
Net loss for the three month period was slightly under $2.0 million (2? per share), an improvement of 45% compared to $3.6 million (3? per share) for the first three months of 2001. Lower interest expense and Company wide cost-saving measures contributed to this improvement to the bottom line.
Allied is a 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, Vancouver Airport Conference Resort, 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: 604-669-5335
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.
Consolidated Balance Sheets
March 31, 2002 and December 31, 2001
(in thousands of dollars)
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March 2002 December 2001
Unaudited Audited
Assets
Current assets:
Cash and cash equivalents $ ? $ 179
Accounts receivable 1,916 2,281
Due from affiliated company ? 72
Inventories 441 482
Prepaid expenses 568 506
Future income taxes 74 74
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2,999 3,594
Income-producing properties 117,365 118,059
Investments 2,550 916
Deferred costs, net of amortization 382 390
Future income taxes 4,947 4,566
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$ 128,243 $ 127,525
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Liabilities and Shareholders' Equity
Current liabilities:
Bank indebtedness $ 961 $ ?
Accounts payable and accrued liabilities 13,038 12,749
Deferred revenue 3,165 254
Capital lease obligation 413 444
Long-term debt 99,188 3,532
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116,765 16,979
Deferred revenue 2,167 2,212
Long-term debt ? 96,623
Capital lease obligation 491 557
Non-controlling interest 484 819
119,907 117,190
Shareholders' equity:
Share capital 29,868 29,868
Deficit (21,532) (19,533)
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8,336 10,335
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$ 128,243 $ 127,525
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ALLIED HOTEL PROPERTIES INC.
Unaudited Consolidated Statements of Operations
Three months ended March 31, 2002 and 2001
(in thousands of dollars, except per share amounts)
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2002 2001
Revenues:
Rooms $ 5,597 $ 9,709
Food and beverage 3,405 4,647
Other 1,232 1,205
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10,234 15,561
Cost of sales:
Rooms 2,092 3,533
Food and beverage 3,180 4,105
Other 344 371
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5,616 8,009
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Gross profit 4,618 7,552
Operating expenses:
Selling, general and administrative 3,855 5,959
Management fees 126 333
Taxes and insurance 960 1,330
Depreciation and amortization 847 1,395
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5,788 9,017
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Operating loss 1,170 1,465
Other expenses (income):
Interest on long term debt 1,351 2,958
Other interest 193 453
Equity in income of investees (32) (36)
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1,512 3,375
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Loss before income taxes
and non-controlling interest 2,682 4,840
Income taxes (recovery):
Current 33 53
Future (381) (724)
(348) (671)
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Loss before non-controlling interest 2,334 4,169
Non-controlling interest (335) (568)
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Net loss $ 1,999 $ 3,601
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Basic and diluted loss per share $0.02 $0.03
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