Sotherly Hotels (SOHO) swung to a net profit for the quarter ended Dec. 31, 2016. The company has made a net profit of $0.06 million, or $ 0.05 a share in the quarter, against a net loss of $0.52 million, or $0.04 a share in the last year period.

Revenue during the quarter went down marginally by 2.22 percent to $35.94 million from $36.75 million in the previous year period.

Cost of revenue went down marginally by 1.56 percent or $0.44 million during the quarter to $27.54 million. Gross margin for the quarter contracted 52 basis points over the previous year period to 23.35 percent.

Total expenses were $33.03 million for the quarter, down 3.22 percent or $1.10 million from year-ago period. Operating margin for the quarter expanded 96 basis points over the previous year period to 8.09 percent.

Operating income for the quarter was $2.91 million, compared with $2.62 million in the previous year period. However, the adjusted EBITDA for the quarter stood at $6.73 million compared with $6.91 million in the prior year period. At the same time, adjusted EBITDA margin contracted 7 basis points in the quarter to 18.73 percent from 18.80 percent in the last year period.

For fiscal year 2017, Sotherly Hotels expects revenue to be in the range of $156.02 million to $158.49 million. It forecasts net income to be in the range of $5.34 million to $6.11 million.

Occupancy revenue was $24.30 million for the quarter, down 2.86 percent or $0.72 million. Food and beverage revenue was $9.14 million during the quarter, down 2.57 percent or $0.24 million from year-ago period. Revenue from other hotel operating activities was $2.49 million for the quarter, up 5.98 percent or $0.14 million from year-ago period.

Andrew M. Sims, chairman and chief executive officer of Sotherly Hotels Inc., commented, "The company experienced a difficult quarter largely as the result of two events. Hurricane Matthew disrupted operations at six of our twelve hotels during the high season. Because we have not concluded negotiations with our insurance carriers, we have not included any lost revenue in the fourth quarter financials. In addition, the Zika scare had a negative effect on the Miami market that severely hurt our Hollywood operations in the fourth quarter. On a more positive note, for 2016, Total Revenue increased 10.3% over the prior year, exceeding industry averages for the same period. For 2016, Hotel EBITDA increased 9.8% and FFO increased 7.3%. With these two acts of God behind us, we look forward to returning to good operating metrics in the first quarter of 2017."

Net receivables were at $4.13 million as on Dec. 31, 2016, down 40.10 percent or $2.77 million from year-ago.

Total assets stood at $406.02million as on Dec. 31, 2016. On the other hand, total liabilities were at $324.68 million as on Dec. 31, 2016.

Return on assets was at 0.93 percent in the quarter. Return on equity was negative at 0.92 percent in the quarter.