FelCor Lodging Trust Incorporated (FCH) swung to a net profit for the quarter ended Dec. 31, 2016. The company has made a net profit of $0.13 million, or $ 0.04 a share in the quarter, against a net loss of $4.16 million, or $0.07 a share in the last year period.
Revenue during the quarter dropped 5.03 percent to $195.92 million from $206.30 million in the previous year period.
Cost of revenue dropped 8.84 percent or $13.55 million during the quarter to $139.78 million. Gross margin for the quarter expanded 298 basis points over the previous year period to 28.66 percent.
Total expenses were $175.73 million for the quarter, down 7.91 percent or $15.08 million from year-ago period. Operating margin for the quarter expanded 280 basis points over the previous year period to 10.31 percent.
Operating income for the quarter was $20.20 million, compared with $15.49 million in the previous year period. However, the adjusted EBITDA for the quarter stood at $51.36 million compared with $50 million in the prior year period. At the same time, adjusted EBITDA margin improved 198 basis points in the quarter to 26.22 percent from 24.24 percent in the last year period.
For fiscal year 2017, Felcor Lodging Trust forecasts net income to be in the range of $33.90 million to $40.40 million. The company projects diluted earnings per share to be in the range of $0.06 to $0.11.
Occupancy revenue was $147.08 million for the quarter, down 2.94 percent or $4.45 million. Food and beverage revenue was $37.74 million during the quarter, down 10.50 percent or $4.43 million from year-ago period. Revenue from other hotel operating activities was $10.61 million for the quarter, down 10.60 percent or $1.26 million from year-ago period.
Other income during the quarter was $0.50 million, down 33.20 percent or $0.25 million from year-ago period.
"On behalf of the entire team, we are very pleased to extend a warm welcome to Steve Goldman, who will join us next week as FelCor’s new chief executive officer. Steve is a terrific industry leader who brings to FelCor extensive experience in all aspects of hotel operations, acquisitions and divestitures, finance and development that will add measurably to our prospects for future success. We are looking forward to working with him as we continue to build value for stockholders," said Troy A. Pentecost, FelCor’s president, Interim Senior executive officer and chief operating officer.
Net receivables were at $42.08 million as on Dec. 31, 2016, up 49.56 percent or $13.94 million from year-ago.
Total assets declined 8.51 percent or $158.82 million to $1,707.09 million on Dec. 31, 2016. On the other hand, total liabilities were at $1,469.62 million as on Dec. 31, 2016, down 5.20 percent or $80.68 million from year-ago.
Return on assets moved up 34 basis points to 1.16 percent in the quarter. Return on equity for the quarter stood at negative 2.64 percent as compared to a negative 3.35 percent for the previous year period.
Debt comes down
Total debt was at $1,338.33 million as on Dec. 31, 2016, down 5.08 percent or $71.56 million from year-ago. Shareholders equity stood at $232.58 million as on Dec. 31, 2016, down 25.25 percent or $78.56 million from year-ago. As a result, debt to equity ratio went up 122 basis points to 5.75 percent in the quarter.
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