Last checked at 19 Sep 2008 13:11
India Hospitality Corp. Reports Preliminary Fiscal First Quarter 2009 Results F1Q09 Revenues Up 52%, EBITDA Increases 46% over Prior-Year Period
LONDON, Sept. 19 -- India Hospitality Corp. today announced preliminary results for IHC for the fiscal quarter ended June 30, 2008. Fiscal 2008 audited results will be released in a separate filing.
Fiscal first quarter 2009 highlights
-- Total revenue increased 52% year-over-year to $10.5 million. -- EBITDA increased 46% year-over-year to $1.9 million. -- IHC's Board appointed Ravi Deol as Chairman and Chief Executive Officer of Mars Restaurants as part of a major initiative to rapidly grow its hotels and food services businesses. -- IHC also announced its intention to launch a $200 million hospitality fund to be led by Mr. Deol to develop and/or acquire Indian hospitality properties. IHC will receive a management fee through an advisory agreement between the fund and Mars.
"We are pleased to see continued strong growth in the fiscal first quarter," said IHC acting Chief Executive Officer Richard Foyston. "SkyGourmet's growth was realized despite emerging weakness in the aviation sector as Sky continued to gain market share. Looking ahead, we expect the economic environment to remain difficult over the next couple of quarters, but we anticipate continued growth and we will continue our efforts to manage costs and maintain margins."
Fiscal First Quarter 2009 Preliminary Results
For the fiscal quarter ended June 30, 2008, India Hospitality reported unaudited revenue of $10.5 million -- a 52% increase from the prior-year period. Top line growth was boosted by an approximate 65% increase in revenue from IHC's SkyGourmet division to $8.7 million, aided by increased demand for meals, as well as the opening of a new kitchen during calendar 2008 and a significant increase in capacity at the company's Delhi Air Catering Unit at the end of the prior fiscal year. Total meals served for the fiscal first quarter 2009 increased 57%.
Revenue at Mars Restaurants increased to $2.7 million, an 11% improvement over the prior-year period. The results at Mars were driven by a 17% increase in average room revenue (ARR) at the Gordon House Hotels and restaurant same-store sales increases of 7%. No new outlets were opened or closed during the quarter.
Total combined adjusted EBITDA for India Hospitality for fiscal first quarter 2009 was $1.9 million compared to $1.3 million in the prior-year period, a 46% increase. Margins expanded at both Mars Restaurants and SkyGourmet; however, consolidated margins decreased as a result of IHC parent company operating costs which began to be accounted for in July 2007 and were thus not a factor in prior-year results.
Liquidity and Balance Sheet
As of June 30, 2008, IHC has approximately $31.9 million in long-term debt on its balance sheet and $13.5 million of cash and cash equivalents -- approximately $7.3 million of which is held at the IHC corporate level.
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 41416523 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.
Unaudited Revenue and EBITDA for the Periods Ended June 30 Mars (in U.S. $mm) Restaurants SkyGourmet Combined * Year/Year F1Q08 F1Q09 F1Q08 F1Q09 F1Q08 F1Q09 Change Revenue $2.4 $2.7 $5.3 $8.7 $6.9 $10.5 52% EBITDA $0.3 $0.4 $1.0 $1.6 $1.3 $1.9 46% * Combined revenue includes intercompany eliminations and IHC
operating expenses for F1Q09.
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.
CONTACT: Media, Harsh Wardhan, Mutual Image & Events Management Pvt. Ltd., +91-11-41416523; or investors, William Schmitt, ICR Inc., +1-203-682-8200; Nominated Adviser and Broker: Deutsche Bank AG, Mumtaz Naseem, +44-20-7545-8000
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