Royal Host Inc. Announces Second Quarter Results
(firmenpresse) - HALIFAX, NOVA SCOTIA -- (Marketwired) -- 08/13/13 -- Royal Host Inc. ("Royal Host" or the "Company") (TSX: RYL)(TSX: RYL.DB.B)(TSX: RYL.DB.C)(TSX: RYL.DB.D) today announced results for the three and six months ended June 30, 2013 (the "Second Quarter").
SECOND QUARTER HIGHLIGHTS
($000's except key performance indicators)Key events of the three months ended June 30, 2013 include:
For the three months ended June 30, 2013 the Company's revenue declined compared to the same period in the prior year primarily due to the sale of five hotels since March 2012. Also contributing to the drop in revenue was a 5.1% decline in RevPAR on a Comparable Hotel1 basis attributable to both the full service and select service portfolios. In the full service portfolio the Company's largest hotel, the London Hilton, was impacted by a downturn in the local market and several other properties experienced lower demand coinciding with increased supply in their respective markets. In the select service portfolio significant declines were experienced in the Timmins, Ontario market, where the Company has two properties, due to new supply entering the market and a softening in demand by resource companies. Despite the drop in revenue, the Company's efforts to reduce debt levels and contain costs have resulted in improved margins, FFO and a reduced net loss for the three month period ended June 30, 2013 versus the same period in the prior year.
OUTLOOK
The Company has experienced negative cash flow (excluding proceeds received upon hotel dispositions) for several consecutive years. The Company's main focus for the remainder of the year will be to create a corporate and operational structure that is sustainably cash flow positive. This will be pursued, among other ways, by an intense focus on reducing costs at both the corporate and hotel levels, driving additional hotel, tenant and ancillary revenues and reducing debt service expense. We believe there are meaningful process improvements and cost reduction initiatives that can be implemented and sustained to achieve this goal.
For the remainder of the year, we anticipate comparable to positive results from our full service portfolio and negative results from our select service portfolio, in each case compared to the prior year's results and without taking into account the effect of any cost reduction initiatives.
SELECTED FINANCIAL INFORMATION
The following table provides key financial information for the three and six months ended June 30, 2013 and 2012:
ROYAL HOST INC.
Royal Host is a diversified hospitality company that delivers shareholder value through hotel ownership, management, investment and franchising. The Company's hotels, which contain approximately 2,611 rooms, are located in four
Provinces and Territories across Canada. Many of the Company's hotels operate under internationally recognized brands such as Travelodge®, Super 8®, Holiday Inn®, and Hilton®. In addition to its real estate holdings, the Company owns and operates the Travelodge Canada franchise business which is currently comprised of over 90 hotels across nine Provinces and Territories.
Royal Host's common shares and convertible debentures are traded on the Toronto Stock Exchange under the trading symbols "RYL", "RYL.DB.B", "RYL.DB.C" and "RYL.DB.D" respectively.
This press release may contain certain forward-looking statements relating, but not limited to, Royal Host's operations, anticipated financial performance, business prospects, and strategies. Forward-looking information typically contains statements with words such as "anticipate", "does not anticipate", "believe", "estimate", "forecast", "intend", "expect", "does not expect", "could", "may", "would", "will", "should", "budgeted", "plan" or other similar terms and expressions suggesting future outcomes. Such forward-looking statements are subject to risks, uncertainties, and other factors, which could cause actual results to differ materially from future results expressed, projected, or implied by such forward-looking statements. Readers are therefore cautioned that Royal Host's expectations, estimates and assumptions, although considered reasonable, may prove to be incorrect and readers should not place undue reliance on forward-looking statements.
Forward-looking statements contained herein are not guarantees of future performance and involve certain risks, uncertainties, and other factors that are difficult to predict, and could result in the outcome of such events being materially different from those intended, planned, anticipated, believed, estimated, or expected in this news release. Such factors and assumptions include, but are not limited to, general economic conditions, levels of travel in Royal Host's key market areas, political conditions and events, competitive pressures, changes in government policy or regulations, and lodging industry conditions. Royal Host does not undertake any obligation to update or release any revisions to these forward-looking statements to reflect events or circumstances, unanticipated events or circumstances, or should its estimates or assumptions change, after the date hereof, except as expressly required by law.
This press release contains registered trademarks that are the exclusive property of their respective owners. None of the owners of these trademarks has any responsibility or liability for any information contained in this press release.
Contacts:
Royal Host Inc.
Michael McFeters
Chief Financial Officer
902.470.4515
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Datum: 13.08.2013 - 14:53 Uhr
Sprache: Deutsch
News-ID 1254377
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