Summit Hotel Properties, Inc. (INN) has reported a 100.02 percent jump in profit for the quarter ended Sep. 30, 2016. The company has earned $27.08 million, or $0.25 a share in the quarter, compared with $13.54 million, or $0.11 a share for the same period last year.
Revenue during the quarter dropped 5.40 percent to $118.34 million from $125.09 million in the previous year period.
Cost of revenue dropped 6.20 percent or $4.86 million during the quarter to $73.53 million. Gross margin for the quarter expanded 53 basis points over the previous year period to 37.86 percent.
Total expenses were $96.91 million for the quarter, down 6.06 percent or $6.25 million from year-ago period. Operating margin for the quarter expanded 57 basis points over the previous year period to 18.11 percent.
Operating income for the quarter was $21.43 million, compared with $21.93 million in the previous year period. However, the adjusted EBITDA for the quarter stood at $42.10 million compared with $43.74 million in the prior year period. At the same time, adjusted EBITDA margin improved 62 basis points in the quarter to 35.58 percent from 34.96 percent in the last year period.
For the fourth-quarter 2016, Summit Hotel Properties, Inc. expects net income to be in the range of $7.10 million to $8.90 million.
For fiscal year 2016, Summit Hotel Properties, Inc. expects net income to be in the range of $105.50 million to $107.30 million.
Occupancy revenue was $110.78 million for the quarter, down 6.35 percent or $7.52 million. Revenue from other hotel operating activities was $7.56 million for the quarter, up 11.18 percent or $0.76 million from year-ago period.
"We are extremely pleased with the continued performance of our diversified portfolio of premium select-service hotels. Our hotels acquired over the past two years led the way during the third quarter, which demonstrates our ability to execute a differentiated investment strategy, targeting higher growth hotels in attractive markets," said Dan Hansen, the Company's president and chief executive officer. "In addition, for the second time this year, we are pleased to have announced another common dividend increase. Our dividend increase of 22.6 percent, which is on top of a 12.8 percent increase earlier in the year, is the result of continued strong cash flows generated by our portfolio of high-quality assets," commented Mr. Hansen.
Receivables increase substantially
Net receivables were at $32.81 million as on Sep. 30, 2016, up 165.27 percent or $20.44 million from year-ago. Accounts payable declined 3.30 percent or $0.14 million to $4.16 million on Sep. 30, 2016.
Total assets grew 3.14 percent or $50.53 million to $1,660.23 million on Sep. 30, 2016. On the other hand, total liabilities were at $678.80 million as on Sep. 30, 2016, down 17.71 percent or $146.12 million from year-ago.
Return on assets moved up 69 basis points to 2.04 percent in the quarter. At the same time, return on equity moved up 105 basis points to 2.25 percent in the quarter.
Debt comes down
Total debt was at $618.89 million as on Sep. 30, 2016, down 19.63 percent or $151.15 million from year-ago. Shareholders equity stood at $981.43 million as on Sep. 30, 2016, up 25.06 percent or $196.65 million from year-ago. As a result, debt to equity ratio went down 35 basis points to 0.63 percent in the quarter.
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