INNSUITES HOSPITALITY TRUST (IHT) – IHT Continuing Operating Results Improve
Phoenix, AZ, Aug. 14, 2020 (GLOBE NEWSWIRE) -- InnSuites Hospitality Trust (NYSE American: IHT) InnSuites Hospitality Trust (IHT) reported total revenues of $6.57 million from continuing operations for the fiscal year ended January 31, 2020 (FY 2020) compared to total revenues from continuing operations of $6.17 million for the fiscal year ended January 31, 2019 (FY2019), an increase of $0.4 million, or 6.5%.
Consolidated Net Loss for FY2020 was approximately $2.0 million compared to Consolidated Net Income of $11.1 million for FY2019. Fiscal year ended January 31, 2019 included net income from discontinued operations of $13.1 million as a result of the profitable sales of our Yuma hotel property and our IBC technology subsidiary. We did not sell any of our properties during the fiscal year ended January 31, 2020.
FY 2020 consolidated net loss from continuing operations, before non-cash depreciation of $0.9 million, before a one-time reserve of $0.8 million on its Note Receivable from the 2018 sale of its IBC technology segment , and before the non-cash impact of $0.2 million of adopting this year’s new lease accounting standard was approximately break-even (loss of $0.05 million), compared to a net loss from continuing operations, before non-cash depreciation, of $0.8 million in FY2019, showing an improvement in continuing operations on a year to year basis.
Net income per share basic and diluted for FY2020 was ($0.21) compared to $1.20 for FY2019.
Preliminary results for the first fiscal quarter ended April 30, 2020 show the negative impact of the COVID-19 virus in the travel and hospitality industries. With significantly lower occupancy and reduced room rates at all properties, we anticipate declines in both revenues and earnings in the first fiscal quarter (February–April). It is our expectation a modest improvement will occur in the second fiscal quarter (May-July), with continuing improvement during the remainder of the fiscal year ending January 31, 2021 as the travel and hospitality industries, and overall economy rebound.
On July 31, 2019 IHT’s paid a one cent semi-annual dividend on shares held of record a July 15, 2019. This continues IHT’s recent practice of paying total annual dividends of two cents per share, payable one cent each semi-annually on July 31 and January 31. This dividend continues 50 consecutive uninterrupted fiscal years during which IHT has paid dividends, since the formation of IHT and the initial listing of its shares on the New York Stock Exchange in 1971.
Said James Wirth President, CEO, and Board Chairman:
“The fiscal year just ended showed significant improvement in continuing operations as IHT continues to execute our strategic plan of selling existing hotel real estate at market prices significantly above our carrying (book) values, and moving away from concentration in the hotel industry toward diversification, including IHT’s high potential investment in UPI’s innovative efficient, clean-energy power generation, and/or reverse merger diversification. Additional profitable hotel real estate sales are anticipated to continue during the 24 months ahead.”
“Management recognizes the current low IHT stock trading range, which we believe affords opportunity for long term investors and continued stock buy-backs.”
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Forward-Looking Statements
With the exception of historical information, the matters discussed in this news release may include “forward-looking statements” within the meaning of the federal securities laws. All statements regarding IHT’s review and exploration of potential strategic, operational and structural alternatives and expected associated costs and benefits are forward-looking. Actual developments and business decisions may differ materially from those expressed or implied by such forward-looking statements. Important factors, among others, that could cause IHT’s actual results and future actions to differ materially from those described in forward-looking statements include the uncertain outcome, impact, effects and results of IHT’s review of strategic, operational and structural alternatives, IHT’s success in finding potential qualified purchasers for its hospitality real estate, or a reverse merger partner, and other risks discussed in IHT’s SEC filings. IHT expressly disclaims any obligation to update any forward-looking statement contained in this news release to reflect events or circumstances that may arise after the date hereof, all of which are expressly qualified by the foregoing, other than as required by applicable law.
FOR FURTHER INFORMATION:
Marc Berg, Executive Vice President
602-944-1500
email:
