Chesapeake Lodging Trust (CHSP) has reported 20.37 percent fall in profit for the quarter ended Mar. 31, 2017. The company has earned $8.02 million, or $0.09 a share in the quarter, compared with $10.07 million, or $0.13 a share for the same period last year.
Revenue during the quarter dropped 4.08 percent to $134.87 million from $140.61 million in the previous year period.
Cost of revenue went down marginally by 1.82 percent or $0.91 million during the quarter to $48.92 million. Gross margin for the quarter contracted 83 basis points over the previous year period to 63.73 percent.
Total expenses were $122.58 million for the quarter, down 1.37 percent or $1.70 million from year-ago period. Operating margin for the quarter contracted 250 basis points over the previous year period to 9.11 percent.
Operating income for the quarter was $12.29 million, compared with $16.33 million in the previous year period.
Occupancy revenue was $98.90 million for the quarter, down 4.69 percent or $4.87 million. Food and beverage revenue was $29.31 million during the quarter, down 4.07 percent or $1.24 million from year-ago period. Revenue from other hotel operating activities was $6.66 million for the quarter, up 6 percent or $0.38 million from year-ago period.
"We are pleased with our results for the first quarter which exceeded our expectations earlier in the year, albeit those expectations were tempered by the challenging environment we have been operating in for the last 18 months," said James L. Francis, Chesapeake Lodging Trust's president and chief executive officer.
For the second-quarter, Chesapeake Lodging Trust forecasts net income to be in the range of $16.10 million to $18 million. The company projects diluted earnings per share to be in the range of $0.27 to $0.30.
For fiscal year 2017, Chesapeake Lodging Trust forecasts net income to be in the range of $42.90 million to $48.90 million. The company projects diluted earnings per share to be in the range of $0.73 to $0.83.
Operating cash flow declinesChesapeake Lodging Trust has generated cash of $23.70 million from operating activities during the quarter, down 5.48 percent or $ 1.37 million, when compared with the last year period. The company has spent $14.43 million cash to meet investing activities during the quarter as against cash outgo of $6.62 million in the last year period.
The company has spent $11.36 million cash to carry out financing activities during the quarter as against cash outgo of $22.04 million in the last year period.
Cash and cash equivalents stood at $40.96 million as on Mar. 31, 2017, down 12.77 percent or $5.99 million from $46.96 million on Mar. 31, 2016.
Net receivables were at $19.76 million as on Mar. 31, 2017, down 8.47 percent or $1.83 million from year-ago.
Total assets went down marginally by 2.44 percent or $50.93 million to $2,032.98 million on Mar. 31, 2017. On the other hand, total liabilities were at $861.77 million as on Mar. 31, 2017, down 3.03 percent or $26.94 million from year-ago.
Return on assets moved down 26 basis points to 0.43 percent in the quarter. At the same time, return on equity moved down 16 basis points to 0.48 percent in the quarter.
Debt comes down marginallyTotal debt was at $754.52 million as on Mar. 31, 2017, down 2.96 percent or $22.99 million from year-ago. Shareholders equity stood at $1,171.21 million as on Mar. 31, 2017, down 2.01 percent or $23.99 million from year-ago. As a result, debt to equity ratio went down 1 basis points to 0.64 percent in the quarter.
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