Provided By PR Newswire
Last update: Nov 5, 2019
Canada NewsWire
MISSISSAUGA, ON, Nov. 5, 2019
MISSISSAUGA, ON, Nov. 5, 2019 /CNW/ - Temple Hotels Inc. ("Temple" or the "Company") (TSX: TPH) today reported its financial results for the three months ended September 30, 2019 ("third quarter"). The following comments in regard to the financial position and operating results of Temple should be read in conjunction with Management's Discussion & Analysis and the financial statements for the three and nine months ended September 30, 2019, which may be obtained from the Temple website at www.templehotels.ca or the SEDAR website at www.sedar.com.
Monetary data in the tables of this press release, unless otherwise indicated, are in thousands of Canadian dollars, except for per common share, average daily rate ("ADR"), and revenue per available room ("RevPar") amounts.
Q3 2019 KEY POINTS/HIGHLIGHTS
OPERATING RESULTS |
|||||||
Three Months Ended |
Nine Months Ended |
||||||
2019 |
2018 |
2019 |
2018 |
||||
Total revenue |
$41,403 |
$45,490 |
$116,532 |
$125,795 |
|||
Hotel operating income |
$10,968 |
$13,921 |
$26,160 |
$33,610 |
|||
Provision for impairment |
($20,573) |
- |
($19,345) |
($6,785) |
|||
Net income (loss) |
($19,409) |
$2,780 |
($25,013) |
($5,798) |
|||
Cash flow provided by operating activities |
$3,605 |
$7,128 |
$4,261 |
$10,402 |
|||
Funds from operations |
$5,590 |
$7,086 |
$7,185 |
$12,019 |
|||
Per common share (basic) |
|||||||
- Net income (loss) |
($0.26) |
$0.11 |
($0.48) |
($0.23) |
|||
- FFO |
$0.07 |
$0.28 |
$0.14 |
$0.48 |
|||
Weighted average number of common shares |
75,189,226 |
25,144,881 |
52,458,527 |
25,215,194 |
|||
Occupancy |
65% |
69% |
59% |
63% |
|||
ADR |
$145.18 |
$147.52 |
$141.19 |
$142.04 |
|||
RevPar |
$94.23 |
$101.80 |
$83.77 |
$90.12 |
Debt Covenants
At September 30, 2019, the Company was not in compliance with debt service covenants affecting four mortgage loans in the aggregate amount of $68.0 million. The loan covenant breaches are expected to be resolved by debt refinancings, loan modification agreements and/or a waiver of the covenant requirements.
Room Revenue Statistics
As disclosed in the following chart, for the three months ended September 30, 2019, RevPar for the Same Property portfolio was $94.23, compared to $101.80 for the three months ended September 30, 2018. RevPar for Same Property portfolio results generally reflect decreased occupancy and ADR levels at the Company's Fort McMurray and Other Alberta segments.
Room Revenue Statistics |
|||||||||||||||||||
Three Months Ended September 30 |
|||||||||||||||||||
2019 |
2018 |
||||||||||||||||||
Occ |
ADR |
RevPar |
Occ |
ADR |
RevPar |
||||||||||||||
Same Property |
|||||||||||||||||||
Fort McMurray |
42% |
$ |
123.83 |
$ |
52.11 |
48% |
$ |
139.29 |
$ |
67.48 |
|||||||||
Other Alberta |
50% |
$ |
110.70 |
$ |
55.16 |
58% |
$ |
117.81 |
$ |
68.18 |
|||||||||
Other Canada |
79% |
$ |
156.82 |
$ |
124.14 |
81% |
$ |
156.92 |
$ |
126.97 |
|||||||||
Overall Portfolio |
65% |
$ |
145.18 |
$ |
94.23 |
69% |
$ |
147.52 |
$ |
101.80 |
|||||||||
Room Revenue Statistics |
|||||||||||||||||||
Nine Months Ended September 30 |
|||||||||||||||||||
2019 |
2018 |
||||||||||||||||||
Occ |
ADR |
RevPar |
Occ |
ADR |
RevPar |
||||||||||||||
Same Property |
|||||||||||||||||||
Fort McMurray |
36% |
$ |
131.19 |
$ |
47.81 |
47% |
$ |
139.12 |
$ |
64.85 |
|||||||||
Other Alberta |
49% |
$ |
116.25 |
$ |
56.87 |
55% |
$ |
119.64 |
$ |
65.80 |
|||||||||
Other Canada |
72% |
$ |
148.98 |
$ |
107.78 |
73% |
$ |
148.72 |
$ |
108.49 |
|||||||||
Overall Portfolio |
59% |
$ |
141.19 |
$ |
83.77 |
63% |
$ |
142.04 |
$ |
90.12 |
|||||||||
The above chart reflects 70% of the operating results of the Acclaim Hotel commencing March 11, 2019. |
Other Hotel Revenue
During the third quarter of 2019, other hotel revenue in the Same Property portfolio decreased by $1.0 million or 9%, compared to the third quarter of 2018, comprised of a decrease of $0.6 million or 16% from the Other Alberta properties, a decrease of $0.2 million or 67% from the Fort McMurray portfolio and a decrease of $0.1 million or 2% from the Other Canada portfolio. In addition, other hotel revenue decreased by $0.4 million due to a non-cash commercial rent adjustment relating to the restructuring of a restaurant lease at a hotel located in Fort McMurray.
During the first nine months of 2019, other hotel revenue for the Same Property portfolio decreased $2.1 million or 6% compared to the first nine months of 2018, comprised of decreases in the Other Alberta, Fort McMurray and Other Canada properties of $1.6 million, $0.3 million and $0.2 million, respectively. In addition, other hotel revenue decreased by $0.4 million due to a non-cash commercial rent adjustment relating to the restructuring of a restaurant lease at a hotel located in Fort McMurray.
Operating Income and Profit Margin
Operating Income and Profit Margin |
|||||||||||||||
Three Months Ended September 30 |
Nine Months Ended September 30 |
||||||||||||||
Operating Income |
Operating Profit Margin |
Operating Income |
Operating Profit Margin |
||||||||||||
2019 |
2018 |
2019 |
2018 |
2019 |
2018 |
2019 |
2018 |
||||||||
Same Property (1) |
|||||||||||||||
Fort McMurray |
$749 |
$1,610 |
17% |
29% |
$1,426 |
$4,959 |
12% |
31% |
|||||||
Other Alberta |
45 |
1,144 |
1% |
13% |
1,038 |
4,011 |
4% |
15% |
|||||||
Other Canada |
10,174 |
11,167 |
33% |
36% |
23,696 |
24,640 |
29% |
30% |
|||||||
Total portfolio |
$10,968 |
$13,921 |
26% |
31% |
$26,160 |
$33,610 |
22% |
27% |
(1) The above chart reflects 70% of the operating results of the Acclaim Hotel commencing March 11, 2019. |
After accounting for the decrease in total revenues and the decrease in hotel operating costs, total operating income decreased by $3.0 million or 21% during the third quarter of 2019, compared to the third quarter of 2018, comprised of decreases of $1.1 million, $1.0 million and $0.9 million for the Other Alberta, Other Canada and Fort McMurray segments, respectively.
As disclosed in the preceding chart, the overall profit margin of the entire hotel portfolio declined from 31% in the third quarter 2018 to 26% in the third quarter of 2019.
ABOUT TEMPLE
Temple is a hotel investment company with hotel properties located across Canada. Temple is listed on the Toronto Stock Exchange under the symbols TPH (common shares). The primary long‑term investment objectives of the Company are to yield stable and growing cash flows and to maximize the long‑term share value of the Company through the active management of its assets, accretive acquisitions, and the performance of value‑added capital improvement programs on selected properties, as deemed appropriate. For further information on Temple, please visit our website at www.templehotels.ca.
This press release contains certain statements that could be considered as forward-looking information. The forward-looking information is subject to certain risks and uncertainties, which could result in actual results differing materially from the forward-looking statements.
SOURCE Temple Hotels Inc.