Sotherly Hotels (SOHO) swung to a net loss for the quarter ended Sep. 30, 2016. The company has made a net loss of $1.38 million, or $ 0.11 a share in the quarter, against a net profit of $3.87 million, or $0.27 a share in the last year period.
Revenue during the quarter grew 9.82 percent to $37.28 million from $33.94 million in the previous year period.
Cost of revenue rose 8.61 percent or $2.23 million during the quarter to $28.19 million. Gross margin for the quarter expanded 84 basis points over the previous year period to 24.37 percent.
Total expenses were $33.54 million for the quarter, up 4.89 percent or $1.56 million from year-ago period. Operating margin for the quarter expanded 423 basis points over the previous year period to 10.02 percent.
Operating income for the quarter was $3.74 million, compared with $1.97 million in the previous year period. However, the adjusted EBITDA for the quarter stood at $7.72 million compared with $12.73 million in the prior year period. At the same time, adjusted EBITDA margin contracted 1679 basis points in the quarter to 20.70 percent from 37.49 percent in the last year period.
For fiscal year 2016, Sotherly Hotels projects revenue to be in the range of $152.30 million to $153.83 million. It expects net income to be in the range of $0.91 million to $1.53 million.
Occupancy revenue was $26.67 million for the quarter, up 10.50 percent or $2.53 million. Food and beverage revenue was $8.41 million during the quarter, up 11.33 percent or $0.86 million from year-ago period. Revenue from other hotel operating activities was $2.20 million for the quarter, down 2.46 percent or $0.06 million from year-ago period.
Andrew M. Sims, chairman and chief executive officer of Sotherly Hotels Inc., commented, "We posted solid quarterly results for the third quarter despite general headwinds in our region and negative market conditions in Houston and Miami. Year-to-date, we are pleased with the results given our relative peer group performance; however, Hurricane Matthew affected six of our hotels in early October, resulting in diminished results in a month that has historically been one of our strongest. Our outlook for the fourth quarter has been adjusted accordingly, which will require us to lower guidance for the year."
Receivables remain almost stable
Net receivables stood at $4.74 million as on Sep. 30, 2016.
Total assets stood at $401.95million as on Sep. 30, 2016. On the other hand, total liabilities were at $314.99 million as on Sep. 30, 2016.
Return on assets was at 0.77 percent in the quarter. Return on equity was negative at 1.97 percent in the quarter.
Total debt was at $295.06 million as on Sep. 30, 2016. Shareholders equity was at $86.96 million as on Sep. 30, 2016. Meanwhile, debt to equity ratio was at 3.39 percent in the quarter.
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