Market Data
Core Strengths
Fiancial Highlights
Press Releases |
SUPERTEL ANNOUNCES THIRD QUARTER
1997 RESULTS; NET INCOME UP 35 PERCENT
NORFOLK, Neb. - October 23, 1997 - Supertel
Hospitality, Inc. (NASDAQ: SPPR) reported a 27.1 percent increase in operating income on a
17.7 percent gain in revenues for the third quarter, ended September 30, 1997. Net
income was $1.7 million, or 36 cents per share, compared to $1.3 million, or 26 cents per
share, in the third quarter of 1996, an increase of 35.1 percent in net income.
Total revenues increased to $13.5 million for the
third quarter of 1997 from $11.4 million in the year-ago period. Operating income
for the period was $4.0 million in 1997 compared to $3.2 million in the third quarter of
1996. Earnings before interest, taxes and depreciation (EBITDA) were $5.1 million
and $4.0 million for the third quarter of 1997 and 1996, respectively, an increase of 26.0
percent.
"Continuing the trend established in the
second quarter of 1997, we again experienced very strong year-over-year revenue and income
comparisons in the third quarter," said Paul J. Schulte, president and CEO of
Supertel Hospitality, Inc. "Of particular note was the 8.8 percent gain in
revenue per available room (REVPAR) and the 1.3 percentage point increase in the occupancy
rate- the first year-over-year improvement in occupancy in two years."
The company credited much of its improved
performance to the successful introduction of an open-book management system, which gives
managers more responsibility and accountability at the property level. "By
sharing property-level P&L statements with our managers and making everyone part of
the drive to improve motel operating income, we are seeing improvements in this critical
measure of success," stated Schulte.
For the third quarter of 1997, total occupancy
increased to 72.7 percent from 71.4 percent for the same period in 1996. For
seasoned properties (those owned/operated for over one year), occupancy was 73.8 percent
for the third quarter of 1997 versus 75.6 percent for the year-ago period. Over the
same period, the average daily room rate (ADR) increased to $45.71 from $42.81, an
increase of 6.8 percent. The result was an 8.8 percent gain in REVPAR to $33.25 for
the third quarter of 1997 from $30.55 for the third quarter of 1996.
During the third quarter of 1997, Supertel opened
its second Wingate Inn, a 101-room property near the Bush Intercontinental Airport in
Houston, Texas. At the end of the third quarter, the company's room count totaled
4,460, up 7.3 percent from 4,156 at year-end 1996.
For the first nine months of 1997, revenues
increased 23.7 percent to $34.8 million from $28.2 million for the year-ago period.
Operating income was $8.8 million compared to $7.1 million, an increase of 24.8
percent. Net income was $3.3 million, or 68 cents per share, and $2.8 million, or 57
cents per share, for the first nine months of 1997 and 1996, respectively.
Supertel Hospitality, Inc. owns and operates
limited-service motel properties under the Super 8, Comfort Inn and Wingate Inn names.
The company has 62 motels, primarily in the Midwest and Texas. |