Chatham Lodging Trust (CLDT) has reported a 39.79 percent jump in profit for the quarter ended Mar. 31, 2017. The company has earned $4.61 million, or $0.13 a share in the quarter, compared with $3.30 million, or $0.08 a share for the same period last year.
Revenue during the quarter went up marginally by 0.54 percent to $69.22 million from $68.85 million in the previous year period.
Cost of revenue for the quarter was almost stable at $41.04 million, when compared with the previous year period. Gross margin for the quarter expanded 56 basis points over the previous year period to 40.71 percent.
Total expenses were $57.19 million for the quarter, down 1.15 percent or $0.67 million from year-ago period. Operating margin for the quarter expanded 141 basis points over the previous year period to 17.37 percent.
Operating income for the quarter was $12.03 million, compared with $10.99 million in the previous year period. However, the adjusted EBITDA for the quarter stood at $28.07 million compared with $27.58 million in the prior year period. At the same time, adjusted EBITDA margin improved 50 basis points in the quarter to 40.56 percent from 40.06 percent in the last year period.
For financial year 2017, Chatham Lodging Trust forecasts hotel revenue to be in the range of $287.80 million to $293.20 million. The company projects net income to be in the range of $26.10 million to $30.60 million. It expects diluted earnings per share to be in the range of $0.67 to $0.79.
For the second-quarter, Chatham Lodging Trust forecasts hotel revenue to be in the range of $76.40 million to $77.50 million. Chatham Lodging Trust projects net income to be in the range of $9.70 million to $11.70 million. The company expects diluted earnings per share to be in the range of $0.25 to $0.30.
Occupancy revenue was $64.39 million for the quarter, up 0.72 percent or $0.46 million. Food and beverage revenue during the quarter was almost stable at $1.50 million, when compared with the previous year period. Revenue from other hotel operating activities was $2.45 million for the quarter, up 3.91 percent or $0.09 million from year-ago period.
Other income during the quarter was $0.88 million, down 16.41 percent or $0.17 million from year-ago period.
"Our first quarter results exceeded our guidance expectations for the quarter, driven by a combination of better than expected RevPAR and operating margin performance," said Jeffrey H. Fisher, Chatham's president and chief executive officer. "Despite tough comparisons from the 2016 first quarter and the fact that lower quality brands in our markets have more capacity to grab market share on a relative basis, RevPAR growth for our entire portfolio exceeded its markets’ average by 90 basis points."
Receivables remain almost stable
Net receivables stood at $6.69 million as on Mar. 31, 2017.
Real estate investments stood at $20.12 million as on Mar. 31, 2017.
Total assets stood at $1,299.62million as on Mar. 31, 2017. On the other hand, total liabilities were at $625.18 million as on Mar. 31, 2017.
Return on assets was at 0.90 percent in the quarter. At the same time, return on equity was at 0.68 percent in the quarter.
Total debt was at $585.87 million as on Mar. 31, 2017. Shareholders equity was at $674.44 million as on Mar. 31, 2017. Meanwhile, debt to equity ratio was at 0.87 percent in the quarter.
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