Summit Hotel Properties, Inc. (INN) has reported an 87.68 percent plunge in profit for the quarter ended Dec. 31, 2016. The company has earned $10.37 million, or $0.04 a share in the quarter, compared with $84.16 million, or $0.92 a share for the same period last year.
Revenue during the quarter went up marginally by 0.26 percent to $110.32 million from $110.04 million in the previous year period.
Cost of revenue went down marginally by 2.24 percent or $1.63 million during the quarter to $71.26 million. Gross margin for the quarter expanded 165 basis points over the previous year period to 35.41 percent.
Total expenses were $95.56 million for the quarter, up 0.51 percent or $0.48 million from year-ago period. Operating margin for the quarter contracted 21 basis points over the previous year period to 13.38 percent.
Operating income for the quarter was $14.76 million, compared with $14.96 million in the previous year period. However, the adjusted EBITDA for the quarter stood at $36.10 million compared with $33.61 million in the prior year period. At the same time, adjusted EBITDA margin improved 217 basis points in the quarter to 32.72 percent from 30.55 percent in the last year period.
Summit Hotel Properties projects net income to be in the range of $10.90 million to $12.80 million for the first-quarter. For financial year 2017, Summit Hotel Properties projects net income to be in the range of $88.50 million to $96 million. The company expects diluted earnings per share to be in the range of $0.07 to $0.09 for the first-quarter. For fiscal year 2017, the company expects diluted earnings per share to be in the range of $0.77 to $0.85.
Occupancy revenue for the quarter was almost stable at $102.61 million, when compared with the previous year period. Revenue from other hotel operating activities was $7.71 million for the quarter, up 6.07 percent or $0.44 million from year-ago period.
“Our diverse portfolio of premium select-service hotels performed exceptionally well during 2016 while achieving an all-time high pro forma hotel EBITDA margin of 38.0 percent,” said Dan Hansen, the Company’s chairman, president and chief executive officer. “For five years in a row, our portfolio has outperformed the Smith Travel Research Upscale RevPAR growth rate by an average of nearly 200 basis points. This track record of outperformance demonstrates our ability to actively manage our portfolio and drive shareholder value,” commented Mr. Hansen.
Net receivables were at $29.39 million as on Dec. 31, 2016, up 32.16 percent or $7.15 million from year-ago. Accounts payable surged 56.87 percent or $1.68 million to $4.62 million on Dec. 31, 2016.
Total assets grew 8.70 percent or $137.55 million to $1,718.50 million on Dec. 31, 2016. On the other hand, total liabilities were at $705.04 million as on Dec. 31, 2016, down 2.62 percent or $18.99 million from year-ago.
Return on assets moved down 483 basis points to 1 percent in the quarter. At the same time, return on equity moved down 901 basis points to 0.33 percent in the quarter.
Debt comes down marginally
Total debt was at $652.41 million as on Dec. 31, 2016, down 2.85 percent or $19.12 million from year-ago. Shareholders equity stood at $1,013.47 million as on Dec. 31, 2016, up 18.27 percent or $156.54 million from year-ago. As a result, debt to equity ratio went down 14 basis points to 0.64 percent in the quarter.
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