MISSISSAUGA, ON, Nov. 10, 2016 /CNW/ - Temple Hotels Inc.
("Temple" or the "Company") (TSX: TPH) today reported its financial
results for the three months ended September
30, 2016 ("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, 2016, 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 2016 KEY POINTS/HIGHLIGHTS
- Net operating income increased by $2.0
million or 15% during the three months ended September 30, 2016 compared to 2015, primarily
due to increases of net operating income within the Other Canada
and Fort McMurray portfolios of
$1.8 million and $0.5 million respectively, partly offset by a
decrease in net operating income within the Other Alberta portfolio
of $0.3 million.
- FFO and AFFO increased by $3.7
million during the three months ended September 30, 2016, compared to the three months
ended September 30, 2015. On a basic
per common share basis, FFO was unchanged and AFFO increased by
$0.02 per common share, compared to
the third quarter of 2015.
- As at September 30, 2016, all
nine Fort McMurray properties had
been reopened following the mandatory evacuation, repair and
remediation due to the wildfires that impacted the region during
the second quarter of 2016. Temple's Fort
McMurray portfolio consists of 889 rooms in nine properties.
Eight of the nine Fort McMurray
properties had been reopened at various dates during the second
quarter. The Radisson Hotel & Suites, which sustained greater
fire, smoke and water damage, reopened on September 12, 2016.
- Subsequent to September 30, 2016,
Temple announced that it has filed a rights offering circular (the
"Rights Offering") for gross proceeds of up to $50.0 million. Temple intends to use the proceeds
of the Rights Offering to repay the Series C convertible debentures
as well as certain other debt and for general corporate purposes
and working capital.
OPERATING RESULTS
|
Three Months Ended
September 30
|
|
Nine Months Ended
September 30
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
Total
revenue
|
$45,280
|
|
$46,355
|
|
$123,001
|
|
$137,808
|
Operating
income
|
$16,052
|
|
$14,003
|
|
$36,133
|
|
$40,332
|
Recovery of
(provision for) impairment
|
-
|
|
($50,857)
|
|
($43,574)
|
|
($50,857)
|
Net income
(loss)
|
$1,390
|
|
($33,097)
|
|
($67,968)
|
|
($39,997)
|
|
|
|
|
|
|
|
|
Cash flow provided by
operating activities
|
($1,482)
|
|
$4,976
|
|
$11,142
|
|
$14,939
|
Funds from
operations
|
$7,858
|
|
$4,174
|
|
$11,250
|
|
$11,035
|
Adjusted funds from
operations
|
$6,682
|
|
$2,953
|
|
$8,283
|
|
$7,617
|
|
|
|
|
|
|
|
|
Per common
share
|
|
|
|
|
|
|
|
‑ Funds from
operations
|
$0.10
|
|
$0.10
|
|
$0.14
|
|
$0.27
|
‑ Adjusted funds from
operations
|
$0.09
|
|
$0.07
|
|
$0.11
|
|
$0.18
|
|
|
|
|
|
|
|
|
Weighted average
number of shares
outstanding
|
78,046,853
|
|
41,251,027
|
|
77,978,612
|
|
41,179,332
|
|
|
|
|
|
|
|
|
Occupancy
|
61%
|
|
68%
|
|
56%
|
|
64%
|
ADR
|
$141.51
|
|
$143.72
|
|
$139.14
|
|
$143.84
|
RevPar
|
$86.33
|
|
$97.02
|
|
$78.52
|
|
$92.20
|
Operating Activities
- Occupancy and ADR – The increase in Same Property
operating income reflects the higher ADR and occupancy levels
within the Other Canada segment. In the third quarter of 2016, the
occupancy levels of the Other Canada segment increased by two
percentage points, to 80%, in comparison to the third quarter of
2015. In addition, ADR in the Other Canada segment increased by
$4.89, to $147.76, in comparison to the third quarter of
2015. The increase in Same Property operating income was partially
offset by reduced ADR levels within the Fort McMurray and Other Alberta segments, as a
result of the unfavourable market conditions continuing to affect
oil-dependent markets in Alberta
as well as a result of the impact of wildfires and mandatory
evacuation in Fort McMurray.
- Cash Provided by Operating Activities ‑ Cash provided by
operating activities increased by $1.6
million during the third quarter of 2016, compared to the
third quarter of 2015. After excluding working capital adjustments,
cash provided by operating activities increased by $3.2 million, compared to 2015.
- Funds from Operations ("FFO") and Adjusted Funds from
Operations ("AFFO") ‑ During the third quarter of 2016, FFO and
AFFO increased by $3.7 million,
compared to the third quarter of 2015. On a basic per common share
basis, FFO was unchanged and AFFO increased by $0.02 per common share, compared to the third
quarter of 2015. The increase AFFO mainly reflects an increase in
operating income, due to the factors noted above.
- Net Income ‑ Temple completed the third quarter of 2016
with a net income of $1.4 million,
compared to a net loss of $33.1
million during the same period in 2015. The increase in net
income is mainly due to a decrease in provision for impairment of
$50.9 million, a decrease in
depreciation of $2.7 million, an
increase in hotel operating income of $2.0
million, and a decrease in net interest expense of
$1.0 million partially offset by an
decrease in income tax recovery of $13.4
million and a decrease in gain on sale of property and
equipment of $9.1 million. On a per
common share basis, the net income was $0.02 for the third quarter of 2016, compared to
a net loss per common share of $0.80
during the third quarter of 2015.
- Asset Impairment ‑ The economic downturn in Alberta has resulted in decreased occupancy
levels and room rates for certain hotel properties. Evidence that
the occupancy and room rate declines may be prolonged, as well as
the lower common share trading price, mandated the completion of an
impairment review and recoverability analysis in accordance with
IFRS. As a result of the analysis, for the three and nine months
ended September 30, 2016, a non‑cash
adjustment for asset impairment in the aggregate amount of $nil and
$43.6 million, respectively, on nine
hotels in Alberta and three in
Other Canada was recorded.
- Deferred Income Tax Asset – Temple has $30.7 million relating to temporary tax
differences that have not been recognized, as it is not probable
that the deferred income tax asset will be realized.
Liquidity and Financing Activities
As of September 30, 2016, the
unrestricted cash balance of Temple was $13.5 million and working capital was $7.9
million.
- During the second quarter of 2016, Temple entered into a
revolving loan agreement with Morguard Corporation ("Morguard") for
$6.0 million, secured by a first
mortgage charge against Nomad Hotel, and bearing interest at prime
plus 2.00%.
- In response to the economic downturn in Alberta, in January
2016, the Company suspended the payment of dividends in
order to preserve liquidity and reduce debt.
- At September 30, 2016, the
Company was not in compliance with debt service covenants affecting
14 mortgage loans in the aggregate amount of $199.9 million. The loan covenant breaches are
expected to be resolved by debt refinancings, loan modification
agreements and/or a waiver of the covenant requirements.
Investing Activities
Temple invested in hotel renovation programs with the objective
of enhancing the quality and competitive position of its hotel
properties through the third quarter of 2016. During the first nine
months of 2016, capital expenditures on hotel properties amounted
to $5.3 million, of which
$3.5 million related to renovation
and upgrade programs at two properties. With major capital
expenditures programs substantially complete, capital expenditures
are expected to be lower than prior year during the remainder of
2016. Management believes that the major capital expenditures
programs, undertaken over the past several quarters, will serve to
enhance the competitive position of Temple's renovated hotel
properties.
ANALYSIS OF OPERATING RESULTS
Analysis of Net
income (loss)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30
|
|
September
30
|
|
2016
|
|
2015
|
|
Increase/
(Decrease) in
Income
|
|
2016
|
|
2015
|
|
Increase/
(Decrease) in
Income
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
Room
revenue
|
$35,426
|
|
$35,911
|
|
($485)
|
|
$91,005
|
|
$102,592
|
|
($11,587)
|
|
Other hotel
revenue
|
9,854
|
|
10,444
|
|
(590)
|
|
31,996
|
|
35,216
|
|
(3,220)
|
|
Total
revenue
|
45,280
|
|
46,355
|
|
(1,075)
|
|
123,001
|
|
137,808
|
|
(14,807)
|
|
|
|
|
|
|
|
|
|
|
|
|
Hotel operating
costs
|
29,228
|
|
32,352
|
|
3,124
|
|
86,868
|
|
97,476
|
|
10,608
|
Hotel operating
income
|
16,052
|
|
14,003
|
|
2,049
|
|
36,133
|
|
40,332
|
|
(4,199)
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
7,944
|
|
8,988
|
|
1,044
|
|
23,659
|
|
26,999
|
|
3,340
|
Share based
compensation
|
70
|
|
110
|
|
40
|
|
243
|
|
285
|
|
42
|
General and
administrative
|
|
|
|
|
|
|
|
|
|
|
|
|
expenses
|
812
|
|
1,000
|
|
188
|
|
2,485
|
|
2,820
|
|
335
|
Depreciation and
amortization
|
6,136
|
|
8,799
|
|
2,663
|
|
18,639
|
|
25,088
|
|
6,449
|
|
1,090
|
|
(4,894)
|
|
5,984
|
|
(8,893)
|
|
(14,860)
|
|
5,967
|
Equity income on
investment
|
|
|
|
|
|
|
|
|
|
|
|
|
in hotel
properties
|
435
|
|
269
|
|
166
|
|
913
|
|
807
|
|
106
|
Gain on sale of
property
|
|
|
|
|
|
|
|
|
|
|
|
|
and
equipment
|
-
|
|
9,071
|
|
(9,071)
|
|
-
|
|
9,071
|
|
(9,071)
|
Provision for
impairment
|
-
|
|
(50,857)
|
|
50,857
|
|
(43,574)
|
|
(50,857)
|
|
7,283
|
Change in fair value
of financial
|
|
|
|
|
|
|
|
|
|
|
|
|
instruments: gain
(loss)
|
-
|
|
61
|
|
(61)
|
|
90
|
|
127
|
|
(37)
|
Income tax recovery
(expense)
|
(135)
|
|
13,253
|
|
(13,388)
|
|
(16,504)
|
|
15,715
|
|
(32,219)
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
$1,390
|
|
($33,097)
|
|
$34,487
|
|
($67,968)
|
|
($39,997)
|
|
($27,971)
|
Per Common Share
Results:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
$0.02
|
|
($0.80)
|
|
|
|
($0.87)
|
|
($0.97)
|
|
|
Hotel Revenue
Analysis of Total
Hotel Revenues
|
|
Three Months Ended
September 30
|
|
Nine Months Ended
September 30
|
|
|
|
|
Increase/
|
|
|
|
|
Increase/
|
|
2016
|
|
2015
|
|
(Decrease)
|
|
2016
|
|
2015
|
|
(Decrease)
|
Same
Property
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fort
McMurray
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Room
revenue
|
$
|
6,811
|
|
$
|
7,288
|
|
$
|
(477)
|
|
$
|
15,701
|
|
$
|
22,716
|
|
$
|
(7,015)
|
|
Other hotel
revenue
|
|
455
|
|
|
484
|
|
|
(29)
|
|
|
1,681
|
|
|
1,667
|
|
|
14
|
|
$
|
7,266
|
|
$
|
7,772
|
|
$
|
(506)
|
|
$
|
17,382
|
|
$
|
24,383
|
|
$
|
(7,001)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
Alberta
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Room
revenue
|
$
|
5,387
|
|
$
|
5,983
|
|
$
|
(596)
|
|
$
|
15,887
|
|
$
|
18,716
|
|
$
|
(2,829)
|
|
Other hotel
revenue
|
|
3,509
|
|
|
3,675
|
|
|
(166)
|
|
|
13,021
|
|
|
13,785
|
|
|
(764)
|
|
$
|
8,896
|
|
$
|
9,658
|
|
$
|
(762)
|
|
$
|
28,908
|
|
$
|
32,501
|
|
$
|
(3,593)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
Canada
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Room
revenue
|
$
|
23,228
|
|
$
|
21,601
|
|
$
|
1,627
|
|
$
|
59,417
|
|
$
|
56,550
|
|
$
|
2,867
|
|
Other hotel
revenue
|
|
5,890
|
|
|
5,601
|
|
|
289
|
|
|
17,294
|
|
|
16,409
|
|
|
885
|
|
$
|
29,118
|
|
$
|
27,202
|
|
$
|
1,916
|
|
$
|
76,711
|
|
$
|
72,959
|
|
$
|
3,752
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total ‑ Same
Property
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Room
revenue
|
$
|
35,426
|
|
$
|
34,872
|
|
$
|
554
|
|
$
|
91,005
|
|
$
|
97,982
|
|
$
|
(6,977)
|
|
Other hotel
revenue
|
|
9,854
|
|
|
9,760
|
|
|
94
|
|
|
31,996
|
|
|
31,861
|
|
|
135
|
|
Total hotel
revenue
|
$
|
45,280
|
|
$
|
44,632
|
|
$
|
648
|
|
$
|
123,001
|
|
$
|
129,843
|
|
$
|
(6,842)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total ‑ Sold
Property
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Room
revenue
|
$
|
-
|
|
$
|
1,039
|
|
$
|
(1,039)
|
|
$
|
-
|
|
$
|
4,610
|
|
$
|
(4,610)
|
|
Other hotel
revenue
|
|
-
|
|
|
684
|
|
|
(684)
|
|
|
-
|
|
|
3,355
|
|
|
(3,355)
|
|
Total hotel
revenue
|
$
|
-
|
|
$
|
1,723
|
|
$
|
(1,723)
|
|
$
|
-
|
|
$
|
7,965
|
|
$
|
(7,965)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Room
revenue
|
$
|
35,426
|
|
$
|
35,911
|
|
$
|
(485)
|
|
$
|
91,005
|
|
$
|
102,592
|
|
$
|
(11,587)
|
|
Other hotel
revenue
|
|
9,854
|
|
|
10,444
|
|
|
(590)
|
|
|
31,996
|
|
|
35,216
|
|
|
(3,220)
|
|
Total hotel
revenue
|
$
|
45,280
|
|
$
|
46,355
|
|
$
|
(1,075)
|
|
$
|
123,001
|
|
$
|
137,808
|
|
$
|
(14,807)
|
During the third quarter of 2016, room revenue decreased by
$0.5 million or 1%, compared to the
third quarter of 2015. The decrease reflects a decrease of
$1.0 million due to the disposition
of a property in 2015, offset by a $0.5
million increase in Same Property room revenue. The increase
in Same Property room revenue is comprised of a $1.6 million (8%) increase in the Other Canada
portfolio, offset by a $0.5 million
(7%) decrease in the Fort McMurray
portfolio and a $0.6 million (10%)
decrease in the Other Alberta portfolio.
The increase in Same Property room revenue during the third
quarter of 2016, compared to the third quarter of 2015, is largely
due to favourable market conditions for the Other Canada segment
which experienced an 8% increase over the third quarter of 2015,
partially offset by the repair and remediation of properties as a
result of the wildfire affecting the Fort
McMurray segment as well as unfavourable market conditions
affecting oil‑dependent markets in the Other Alberta
segment.
Insurance Recoveries
Temple maintains insurance coverage based on industry best
practices and insurance standards, and include Liability, Property,
Boiler and Machinery insurance programs that extend for Building,
Contents and Loss of Revenue.
On May 3, 2016, Fort McMurray and the surrounding areas were
placed under a mandatory evacuation due to uncontrolled wildfires
that extensively damaged the city. The evacuation order, which
ended on June 4, 2016, prompted the
closure, repair and environmental remediation of all the Company's
properties in Fort McMurray. The
Company's hotels sustained limited damage at eight of its nine
hotels. Certain hotels began receiving guests for emergency and
restoration services on May 5, 2016,
and eight hotels were reopened at various dates during the second
quarter of 2016. The Radisson Hotel & Suites, which sustained
greater fire, smoke and water damage, reopened on September
12, 2016. The Cortona lease revenues were not impacted by the
business interruption. The events in Fort
McMurray will result in an insurance claim under the
Company's business interruption policy. Recoveries under this
policy are only recognized at the earlier of when proceeds have
been received or when confirmation has been given by the insurer of
the amount of any settlement. Because of the complex and uncertain
nature of the settlement negotiations process, the Company has not
recognized any provision in the financial statements for the three
and nine months ended September 30,
2016.
Room Revenue Statistics
As disclosed in the following chart, for the three months ended
September 30, 2016, RevPar for the
Same Property portfolio was $99.32,
compared to $97.89 for the three
months ended September 30, 2015.
For the nine months ended September 30,
2016, RevPar for the Same Property portfolio was
$85.50, compared to $92.60 for the nine months ended September 30, 2015.
The third quarter increase in RevPar for the Same Property
portfolio results generally reflects increased ADR in the Other
Canada segment, partially offset by reduced ADR and occupancy
levels in Fort McMurray and Other
Alberta segments.
Room Revenue
Statistics
|
|
|
Three Months Ended
September 30
|
|
|
2016
|
|
2015
|
|
|
Occ
|
|
|
ADR
|
|
RevPar
|
|
Occ
|
|
|
ADR
|
|
RevPar
|
Same
Property
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fort
McMurray
|
|
53%
|
|
$
|
154.00
|
|
$
|
81.46
|
|
52%
|
|
$
|
169.59
|
|
$
|
88.29
|
Other
Alberta
|
|
57%
|
|
$
|
121.33
|
|
$
|
69.37
|
|
60%
|
|
$
|
128.11
|
|
$
|
77.04
|
Other
Canada
|
|
80%
|
|
$
|
147.76
|
|
$
|
118.09
|
|
78%
|
|
$
|
142.87
|
|
$
|
110.81
|
Total – Same
Property
|
|
69%
|
|
$
|
143.94
|
|
$
|
99.32
|
|
68%
|
|
$
|
143.24
|
|
$
|
97.89
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sold
Property
|
|
-
|
|
$
|
-
|
|
$
|
-
|
|
46%
|
|
$
|
163.24
|
|
$
|
75.69
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Overall
Portfolio
|
|
69%
|
|
$
|
143.94
|
|
$
|
99.32
|
|
68%
|
|
$
|
143.72
|
|
$
|
97.02
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Room Revenue
Statistics
|
|
|
Nine Months Ended
September 30
|
|
|
2016
|
|
2015
|
|
|
Occ
|
|
|
ADR
|
|
RevPar
|
|
Occ
|
|
|
ADR
|
|
RevPar
|
Same
Property
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fort
McMurray
|
|
39%
|
|
$
|
157.97
|
|
$
|
61.53
|
|
53%
|
|
$
|
174.35
|
|
$
|
93.01
|
Other
Alberta
|
|
55%
|
|
$
|
126.12
|
|
$
|
68.71
|
|
62%
|
|
$
|
131.72
|
|
$
|
81.22
|
Other
Canada
|
|
71%
|
|
$
|
141.23
|
|
$
|
100.55
|
|
70%
|
|
$
|
137.90
|
|
$
|
96.93
|
Total – Same
Property
|
|
61%
|
|
$
|
140.98
|
|
$
|
85.50
|
|
65%
|
|
$
|
143.16
|
|
$
|
92.60
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sold
Property
|
|
-
|
|
$
|
-
|
|
$
|
-
|
|
53%
|
|
$
|
160.55
|
|
$
|
85.03
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Overall
Portfolio
|
|
61%
|
|
$
|
140.98
|
|
$
|
85.50
|
|
64%
|
|
$
|
143.84
|
|
$
|
92.20
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The above chart does
not reflect the operating results for the Cortona Residence, which
is 100% leased at an annual net rent of $2.1 million.
|
Other Hotel Revenue
During the third quarter of 2016, other hotel revenue decreased
by $0.6 million or 6%, compared to
the third quarter of 2015, mainly comprised of a decrease of
$0.7 million from the Sold Property
and a decrease of $0.2 million from
the Other Alberta properties, partially offset by a $0.3 million increase in the Other Canada
portfolio. The decrease in other revenue for the Other Alberta
portfolio mainly reflects decreased economic activity in hotel
markets that are directly or indirectly related to the oil
industry.
Notwithstanding the above, the Sheraton Red Deer was the most
significant contributor to other hotel revenue in the Same Property
portfolio during the third quarter of 2016, accounting for
$2.5 million or 25% of other hotel
revenue.
During the first nine months of 2016, other hotel revenue
decreased by $3.2 million or 9%,
compared to the first nine months of 2015, comprised of a decrease
of $3.3 million from the Sold
Property and a decrease of $0.8
million from the Other Alberta properties, partially offset
by a $0.9 million increase in the
Other Canada portfolio.
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
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Same
Property
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fort
McMurray
|
$4,238
|
|
$3,690
|
|
58%
|
|
47%
|
|
$8,204
|
|
$12,136
|
|
47%
|
|
50%
|
Other
Alberta
|
$1,370
|
|
$1,654
|
|
15%
|
|
17%
|
|
$4,992
|
|
$6,691
|
|
17%
|
|
21%
|
Other
Canada
|
$10,444
|
|
$8,815
|
|
36%
|
|
32%
|
|
$22,937
|
|
$21,019
|
|
30%
|
|
29%
|
Total ‑ Same
Property
|
$16,052
|
|
$14,159
|
|
35%
|
|
32%
|
|
$36,133
|
|
$39,846
|
|
29%
|
|
31%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sold
Property
|
$ -
|
|
($156)
|
|
-
|
|
(9%)
|
|
$ -
|
|
$486
|
|
-
|
|
6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
portfolio
|
$16,052
|
|
$14,003
|
|
35%
|
|
30%
|
|
$36,133
|
|
$40,332
|
|
29%
|
|
29%
|
After accounting for the decrease in total revenues and the
decrease in hotel operating costs, total operating income increased
by $2.0 million or 15% during the
third quarter of 2016, compared to the third quarter of 2015,
comprised of an increase of $1.9
million or 13% for the Same Property portfolio and an
increase of $0.1 million due to the
Sold Property. The increase in Same Property operating income
mostly reflects a $1.6 million, or
18%, increase in operating income for the Other Canada segment and
a $0.5 million increase in operating
income for the Fort McMurray
segment. The operating profit margin within the Fort McMurray segment increased to 58% during
the third quarter of 2016, compared to 47% during the third quarter
of 2015, reflecting a decrease in variable costs due to decreased
occupancy.
For the first nine months of 2016, total operating income
decreased by $4.2 million, or 10%,
compared to the first nine months of 2015, which was comprised of a
decrease of $3.7 million or 9% for
the Same Property portfolio and a decrease of $0.5 million for Sold Property. The decrease in
Same Property operating income reflects a $3.9 million, or 32%, decrease in operating
income for the Fort McMurray
segment and a $1.7 million, or 25%,
decrease in operating income for the Other Alberta segment offset
by a $1.9 million, or 9%, increase
for the Other Canada segment.
As disclosed in the preceding chart, the overall profit margin
of the entire hotel portfolio was 35% for the third quarter of
2016, compared to 30% for the third quarter of 2015. For the nine
months ended September 30, 2016, the
overall profit margin was 29%, compared to 29% for the nine months
ended September 30, 2015.
ABOUT TEMPLE
Temple is a growth oriented hotel investment company with hotel
properties located across Canada.
Temple is listed on the Toronto Stock Exchange under the symbols
TPH (common shares), TPH.DB.C, TPH.DB.D, TPH.DB.E and TPH.DB.F
(convertible debentures). 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.