Last checked at 10 Dec 2008 07:00
India Hospitality Corp. Reports Preliminary Fiscal Second Quarter 2009 Results F2Q09 Revenues Up 13% over Prior-Year Period
LONDON, Dec. 10 -- India Hospitality Corp. today announced preliminary results for IHC for the fiscal quarter ended September 30, 2008.
Fiscal Second Quarter 2009 Highlights
- Total revenue increased 13% year-over-year to $8.9 million.
- SkyGourmet revenue increased 18% over the prior-year quarter.
- Mars Restaurants revenue improved 1% year-over-year, while restaurant same-store sales increased 6%.
- Combined EBITDA for SkyGourmet and Mars declined to $1.0 million from $1.2 in the prior-year quarter. EBITDA including IHC corporate expense was $0.7 million.
Fiscal Second Quarter 2009 Preliminary Results
For the fiscal quarter ended September 30, 2008, India Hospitality reported unaudited revenue of $8.9 million -- a 13% increase from the prior-year period. Top line growth was boosted by an approximate 18% increase in revenue from IHC's SkyGourmet division to $7.2 million, aided by increased demand for meals, as well as the opening of a new kitchen during calendar 2008. Total meals served for the fiscal second quarter 2009 increased 13% over the prior-year quarter.
Revenue at Mars Restaurants increased to $2.7 million, a 1% improvement over the prior-year period. The results at Mars were driven by a 24% increase in average room rate (ARR) at the Gordon House Hotels and restaurant same-store sales increases of 6%. Two new cake shops were opened in Delhi, while no shops were closed during the quarter.
Total combined EBITDA for India Hospitality for fiscal second quarter 2009 was $0.7 million compared to $1.2 million in the prior-year period, a 40% decrease. The combined EBITDA for fiscal second quarter 2009 includes intercompany eliminations and IHC corporate operating costs of approximately $0.3 million, while the prior-year period had negligible IHC corporate costs due to the acquisition of the operating companies by IHC. Margins saw a decrease at both Mars Restaurants and SkyGourmet due to the slowing economy as well as increases in cost of goods sold and operating costs.
Liquidity and Balance Sheet
As of September 30, 2008, IHC has approximately $28.4 million in long-term debt on its combined balance sheet and $7.8 million of cash and cash equivalents. Key balance sheet metrics are included at the end of this announcement.
About India Hospitality Corp.
India Hospitality Corporation's mission is to acquire and successfully operate Indian businesses or assets in the hospitality, leisure, tourism, travel and related industries, including but not limited to hotels, resorts, timeshares, serviced apartments and restaurants.
IHC operates through two wholly owned subsidiaries, Mars Restaurants Private Limited -- an emerging hotel and restaurant company -- and SkyGourmet Catering Private Limited, a leading airline catering company. The companies are headquartered in Mumbai and have over 1,700 employees across their facilities in India.
For Further Information Contact: Media Contact: Mutual Image & Events Management Pvt. Ltd. Harsh Wardhan +91 11 43620700 Investor Relations Contact: ICR Inc. William Schmitt +1 (203) 682-8200 Nominated Adviser and Broker: Deutsche Bank AG Mumtaz Naseem +44 20 7545 8000
Deutsche Bank AG is IHC's nominated adviser and broker for the purposes of the AIM Rules for Companies. Its responsibilities as IHC's nominated adviser and broker under the AIM Rules for Nominated Advisers are owed solely to London Stock Exchange plc and not to IHC, any director of IHC or any other person.
No offer or invitation to purchase or subscribe for ordinary shares in or warrants to purchase or subscribe for ordinary shares or warrants of IHC is being made by this announcement.
Revenue and Adjusted EBITDA for the Periods Ended September 30 -------------------------------------------------------------- Mars (in U.S. $mm) Restaurants SkyGourmet Combined * Year/Year F2Q08 F2Q09 F2Q08 F2Q09 F2Q08 F2Q09 Change ----- ----- ----- ----- ----- ----- ------ Revenue $2.7 $2.7 $6.1 $7.2 $7.8 $8.9 13% EBITDA $0.2 $0.2 $0.9 $0.8 $1.2 $0.7 -40%
* Combined revenue includes intercompany eliminations and IHC operating
expenses for F2Q09. Key Balance Sheet Metrics ------------------------- IHC consolidated level ---------------------- (in U.S. $mm) September 30, 2008 March 31, 2008 ------------------ -------------- Cash & cash equivalents $7.8 $18.1 Shareholders' Equity 145.5 146.2 Long-Term Debt 28.4 37.9 Key Balance Sheet Metrics ------------------------- Operating entity level (Sky + Mars) ----------------------------------- (in U.S. $mm) September 30, 2008 March 31, 2008 ------------------ -------------- Net working capital $3.0 $1.5 Net fixed assets 59.9 62.1 Cautionary note regarding forward-looking statements
This preliminary earnings announcement contains certain forward-looking statements with respect to the financial condition, results of operations and business of India Hospitality Corp. (the Company), and certain plans and objectives of the board of directors of the Company. These forward-looking statements can be identified by the fact that they do not relate only to historical or current facts. Forward-looking statements often use words such as "anticipate", "target", "expect", "estimate", "intend", "plan", "goal", "believe", "will", "may", "should", "would", "could" or other words of similar meaning. These statements are based on assumptions and assessments made by the board of directors of the Company in light of their experience and their perception of historical trends, current conditions, expected future developments and other factors they believe appropriate. By their nature, forward-looking statements involve risk and uncertainty, and the factors described in the context of such forward-looking statements in this announcement could cause actual results and developments to differ materially from those expressed in or implied by such forward-looking statements.
Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in this release. India Hospitality Corp. assumes no obligation to update or correct the information contained in this release, whether as a result of new information, future events or otherwise, except to the extent legally required.
The statements contained in this announcement are made as at the date of this release, unless some other time is specified in relation to them, and service of this announcement shall not give rise to any implication that there has been no change in the facts set out in this announcement since such date. Nothing contained in this announcement shall be deemed to be a forecast, projection or estimate of the future financial performance of the Company except where expressly stated.
SOURCE India Hospitality Corp.
CONTACT: Media, Harsh Wardhan of Mutual Image & Events Management Pvt. Ltd., +91-11-43620700; Investors, William Schmitt of ICR Inc., +1-203-682-8200; Nominated Adviser and Broker: Mumtaz Naseem of Deutsche Bank AG, +44-20-7545-8000, all for India Hospitality Corp.
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