Hammons Hotels reports 2005 first-half results

According to a company news release, total revenues from continuing operations for the six months ended July 1 were $228.9 million, a 4.4 percent increase compared to the same period in 2004. Earnings before interest, taxes, depreciation and amortization for the six-month period were $66.6 million, 6.9 percent higher than the $62.3 million in EBIDTA reported for the same period in 2004. Shares closed Aug. 10 at $23.61.

Basic earnings per share for the six-month period were $1.56, compared to 34 cents for the first six months of 2004. The company is traded on the American Stock Exchange under the symbol JQH.

Diluted earnings per share were $1.26 for the first six months of 2005, compared to 29 cents in 2004.

The company also released its second quarter results, which showed total revenues of $117.5 million from continuing operations for the quarter ended July 1. EBIDTA for the second quarter was $34.5 million, up from $30 million in second-quarter 2004. The 2004 results, however, included a $4.5 million loss from discontinued operations during the quarter.

Since the beginning of 2004, Hammons Hotels has reduced its debt by more than $37 million, including scheduled principal amortization. The company’s portion of long-term debt is $16.6 million, compared to $25.7 million at the end of fiscal year 2005.

In May, John Q. Hammons, the principal shareholder of John Q. Hammons Hotels Inc., reached a tentative agreement with JQH Acquisitions LLC to acquire the company’s common stock for $24 per share, or about $132.5 million.

The deal, which could close in late August or early September, will make the publicly traded company a private venture, though officials have said there should be no noticeable effect on daily operations.