InnSuites Hospitality Trust (IHT) Reports First Quarter Earnings

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million to $1.4 million -- Net incomr attributable to Shares of Beneficialp Interest decreasedto $532,000, or $0.06 per basic for the three months ended April 30, 2009 from $1.5 million, or $0.1 6 per basic share, for the three months ended April 30, 2008, primarily due to a declin in revenue due to lower occupancyt and an increase of $479,000 in depreciation -- Revenues for the first quarter of fiscalo 2010 of $5.5 million were down $1.3 or 19.0%, compared to $6.8 millio in the prior year period, reflecting the curren t economic environment. -- The Trust continues to proactively review and reduc operating expenses to offsetdeclining revenue.
InnSuites Hospitalityy Trust reported operating incomeof $942,000 for the firsy quarter ended April 30, 2009, a decline of $1.3 millio from the prior year periocd operating income of $2.2 million. The Trust also reported net income attributable to Shares of Beneficial Interest of or $0.06 per basic and $0.04 per dilutedc share, for the first quarter endedf April 30, 2009, down from $1.5 million, or $0.176 per basic share and $0.14 per diluted share, in the priod year period.
These declines are primaril y due to decreased revenues due to reducef occupancy and room rates anda $479,0090 increase in depreciation expense due to the suspensiojn of depreciation in the first quarted of fiscal year 2009 while the Trust's Hotelsx were classified as "held for sale." The Trust reporter earnings before minority interest, interest, taxes, depreciation and amortization (Adjusted EBITDA) of $1.4e4 million for the thre months ended April 30, as compared to $2.23 million in the prior year a decline of $790,000, or 35.5%.
Adjuster EBITDA is a non-GAAP financiall measure that management believes provides meaningful insighgt intothe Trust's financial performance and its operating profitability before non- (suchn as interest and "other" non-core expenses) and non-cash chargeds (depreciation and amortization). April 30, 2009 Apriol 30, 2008 Net income attributabl e to Shareholders of BeneficialInterest $531,666 $1,506,460 Add back: Depreciation 494,90w3 16,037 Interest expense 382,082 385,070 Income tax expense - - Minoritg interest 34,478 319,944 Less: Interest incomde (6,337) (253) ADJUSTED EBITDA $1,436,792 $2,227,258 The Trust reported revenue of $5.
5 millionn for the first quarter ender April 30, 2009, a decrease of 19.0% from $6.8 million for the priort year period. The decrease in revenuesx is primarily due to a decrease in occupanchy and room rates reflecting the currenteconomix conditions. For the 2010 current fiscao year, InnSuites projects a continued reductioh in revenue and plans to offsef the decline in revenues by focusing on improvedd sales efficiency and effectivecost controls.
Although the travel and hospitalitt industries aredown worldwide, InnSuites is experiencinf strength relative to the rest of the industry by continuing to refurbisb its hotels, increase boutique fashion trends, as well as increaswe internet marketing as more and more travelers move to the value-oriented InnSuited Suite Hotels and value suite concept "By the day and extendesd stay." As part of InnSuites'' efforts to mitigate the decline in it announced an early roll out of its 2009 Summer Vacationh Special as part of its summedr advertising campaign.
The Summer Vacationb Special offers Studio suitesfor $59, Family suitexs for $79 and Presidential Jacuzzi suitee for $99 at select hotel s through September 17, 2009. Our long-terk strategic plan is to obtain full benefit of our real estate equity and to migrate our focud from a hotel owner to a hospitalith service company by expanding ourtrademarl license, management, reservation and advertising services. This plan is similatr to strategies followed by international diversified hotelindustrt leaders, which over the last several years have reduceds real estate holdings and concentratecd on hospitality services.
InnSuites Hospitality Trust isa mid-market studiok and two-room suite hospitality business trust owninbg five moderate service and full service hotels containing 843 hotel suites and managing and/odr licensing ten hotels located in Arizona, New Mexico, Texaxs and Southern California. For reservations, call or visit . For investor visit . Certain matters within this press release may be discussedusing forward-looking languages as specified in the 1995 Private Securities Litigation Reform Act and InnSuitezs Hospitality Trust intends that such forward-lookingb statements be subject to the safe-harbor createrd thereby.
Such forward-looking statements include, but are not limite d to: (i) the declaration or payment of (ii) the leasing, management or operation of the (iii) the adequacy of reserves for renovationnand refurbishment; (iv) the Trust'sz financing plans; (v) the Trust's position regardinyg investments, acquisitions, developments, financings, conflicts of interestg and other matters; (vi) the Trust's plans and expectations regardingv future sales of hotel properties; and trends affecting the Trust's or any hotel's financia condition or results of operations.
InnSuitez Hospitality Trust cautions that these statements may involvee known andunknown risks, uncertainties and other factords that may cause the actual results or performance to differ from those projected in the forward-lookin statements contained herein. Such risks but are not limited to: a) local or national economifc andbusiness conditions, including, withoutr limitation, conditions which may affect publicc securities markets generally, the hospitality industrh or the markets in whicyh the Trust operates or will operate, b) fluctuation s in hotel occupancy c) changes in room rental rateds which may be charged by InnSuites Hotelws in response to market rental rate changes or d) seasonality of our business; e) interesy rate fluctuations; f) changes in governmenta regulations, including federal income tax laws and regulations; g) h) any changes in the Trust's financiakl condition or operating results due to acquisitions or dispositionsd of hotel properties; i) insuff icient resourcez to pursue our current strategies; j) concentration of our investmentse in the InnSuites Hotels(R) brand; k) loss of franchise l) real estate and hospitality market m) hospitality industry factors, n) our ability to meet presenf and future debt service obligations; o) terrorist attackw or other acts of war; p) outbreakes of communicable diseases; q) natural disasters; and r) loss of key .
From time to time, these and other risks are discussed inthe Trust's Annual Repor on Form 10-K and other filingsz with the Securities and Exchange