Summit Hotel Properties, Inc. (INN) has reported a 31.76 percent plunge in profit for the quarter ended Mar. 31, 2017. The company has earned $33.09 million, or $0.31 a share in the quarter, compared with $48.48 million, or $0.51 a share for the same period last year.
Revenue during the quarter went down marginally by 0.08 percent to $117.99 million from $118.08 million in the previous year period.
Cost of revenue went up marginally by 1.44 percent or $1.07 million during the quarter to $75.20 million. Gross margin for the quarter contracted 95 basis points over the previous year period to 36.26 percent.
Total expenses were $99.42 million for the quarter, up 2.06 percent or $2.01 million from year-ago period. Operating margin for the quarter contracted 177 basis points over the previous year period to 15.74 percent.
Operating income for the quarter was $18.57 million, compared with $20.67 million in the previous year period. Adjusted EBITDA for the quarter was almost stable at $41.06 million, when compared with the prior year period. At the same time, adjusted EBITDA margin improved 15 basis points in the quarter to 34.80 percent from 34.65 percent in the last year period.
For the second-quarter 2017, Summit Hotel Properties, Inc. projects net income to be in the range of $34.50 million to $36.30 million.
For financial year 2017, Summit Hotel Properties, Inc. projects net income to be in the range of $94.40 million to $101.90 million.
Occupancy revenue for the quarter was almost stable at $110.35 million, when compared with the previous year period. Revenue from other hotel operating activities was $7.64 million for the quarter, up 2.03 percent or $0.15 million from year-ago period.
"We are pleased with the strong earnings performance of our company during the quarter which continues to be supported by a differentiated strategy of owning a diversified portfolio of premium-branded hotels with efficient operating models," said Dan Hansen, the Company's chairman, president and chief executive officer. "Our two acquisitions during the quarter demonstrate the success we have had in identifying and acquiring high-quality hotels at attractive cap rates to further enhance our portfolio. In addition, we had another opportunity to increase our common dividend this quarter. Our three dividend increases over the last five quarters represent a compound annual growth rate of 20.3 percent, which is a result of the continued strong cash flow being generated by our portfolio," commented Mr. Hansen.
Net receivables were at $26.63 million as on Mar. 31, 2017, down 18.49 percent or $6.04 million from year-ago. Accounts payable surged 42.83 percent or $1.62 million to $5.40 million on Mar. 31, 2017.
Total assets grew 9.69 percent or $158.68 million to $1,796.12 million on Mar. 31, 2017. On the other hand, total liabilities were at $768.11 million as on Mar. 31, 2017, up 2.88 percent or $21.48 million from year-ago.
Return on assets moved down 121 basis points to 2.23 percent in the quarter. At the same time, return on equity moved down 217 basis points to 2.81 percent in the quarter.
Debt moves up marginally
Total debt was at $714.31 million as on Mar. 31, 2017, up 2.44 percent or $17.01 million from year-ago. Shareholders equity stood at $1,028.01 million as on Mar. 31, 2017, up 15.40 percent or $137.21 million from year-ago. As a result, debt to equity ratio went down 9 basis points to 0.69 percent in the quarter.
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