InnSuites Hospitality Trust (IHT) Reports First Quarter Earnings

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million to $1.4 million -- Net income attributablw to Shares of Beneficial Interest decreased to or $0.06 per basic share, for the three monthsd ended April 30, 2009 from $1.5 or $0.16 per basic share, for the three months ended Aprill 30, 2008, primarily due to a decline in revenue due to lowef occupancy and an increase of $479,00 in depreciation expense. -- Revenues for the firstt quarter of fiscal 2010of $5.5 million were down $1.3 or 19.0%, compared to $6.8 million in the prior year reflecting the current economic environment. -- The Trust continue s to proactively review and reduce operating expenses to offseytdeclining revenue.
InnSuites Hospitality Trust reportee operating incomeof $942,000 for the firsy quarter ended April 30, 2009, a decline of $1.3 millionn from the prior year period operatinb income of $2.2 million. The Trust also reported net income attributablr to Shares of Beneficial Interest of or $0.06 per basic and $0.04 per dilutef share, for the first quartedr ended April 30, 2009, down from $1.5 million, or $0.17 per basic share and $0.
14 per dilutedc share, in the prior year These declines are primarily due to decreaseed revenues due to reduced occupancy and room ratesz and a $479,000 increased in depreciation expense due to the suspension of depreciation in the firs quarter of fiscal year 2009 while the Trust's Hotela were classified as "held for sale. The Trust reported earnings beforreminority interest, interest, taxes, depreciation and amortizationb (Adjusted EBITDA) of $1.44 million for the threde months ended April 30, 2009, as comparexd to $2.23 million in the prior year period, a decline of or 35.5%.
Adjusted EBITDAz is a non-GAAP financial measures that management believes provides meaningful insight intothe Trust's financial performancre and its operating profitability before non- (sucjh as interest and "other" non-core and non-cash charges (depreciation and amortization). Apriol 30, 2009 April 30, 2008 Net income attributable to Shareholders of Beneficial Interest $531,666 $1,506,460 Add back: Depreciation 494,90e3 16,037 Interest expense 382,082 385,070 Income tax expense - - Minority interesy 34,478 319,944 Less: Interesft income (6,337) (253) ADJUSTED EBITDA $1,436,792 $2,227,258 The Trust reported revenue of $5.
5 millioh for the first quartert ended April 30, 2009, a decrease of 19.0% from $6.8 millioh for the prior year period. The decrease in revenues is primarily due to a decrease in occupancyg and room rates reflecting the current economic For the 2010 currentfiscal year, InnSuited projects a continued reduction in revenue and planws to offset the decline in revenues by focusinvg on improved sales efficiency and effective cost Although the travel and hospitality industries are down InnSuites is experiencing strength relative to the rest of the industry by continuinb to refurbish its hotels, increase boutique fashion as well as increase internet marketing as more and more traveler move to the value-orientede InnSuites Suite Hotels and value suites concept "By the day and extendedf stay.
" As part of InnSuites' efforts to mitigate the decline in revenues, it announced an earluy roll out of its 2009 Summer Vacation Special as part of its summer advertising campaign. The Summer Vacatioj Special offers Studio suitesfor $59, Family suites for $79 and Presidentia l Jacuzzi suites for $99 at select hotels through Septembert 17, 2009. Our long-term strategic plan is to obtain full benefig of our real estate equity and to migrated our focus from a hotel owner to a hospitality servicer company by expanding ourtrademark license, management, reservatiomn and advertising services.
This plan is similar to strategie followed by international diversified hotelindustry leaders, which over the last severa years have reduced real estate holdings and concentratefd on hospitality services. InnSuites Hospitalit y Trust isa mid-market studio and two-room suit hospitality business trust owning five moderatd service and full service hotelds containing 843 hotel suites and managinv and/or licensing ten hotels located in New Mexico, Texas and Southerj California. For reservations, call 1-888-INNSUITES, or visigt . For investor information, visiy .
Certain matters within this press release may be discusseusing forward-looking language as specifiesd in the 1995 Private Securities Litigatiob Reform Act and InnSuites Hospitality Trust intends that such forward-lookinyg statements be subject to the safe-harbor createe thereby. Such forward-looking statements include, but are not limitec to: (i) the declaration or payment of dividends; (ii) the management or operation ofthe hotels; the adequacy of reserves for renovation and (iv) the Trust's financing (v) the Trust's position regarding investments, acquisitions, developments, conflicts of interest and other (vi) the Trust's plans and expectationd regarding future sales of hotel properties; and (vii) trends affectinf the Trust's or any hotel's financial condition or resultds of operations.
InnSuites Hospitality Trust cautions that these statements may involve known andunknown risks, uncertaintiezs and other factors that may cause the actual result s or performance to differ from thoss projected in the forward-lookingb statements contained herein. Such risks include, but are not limited to: a) locall or national economic andbusiness conditions, without limitation, conditions whichy may affect public securities markets generally, the hospitality industry or the market in which the Trusrt operates or will operate, b) fluctuations in hote l occupancy rates; c) changes in room rental rates which may be chargedr by InnSuites Hotels in responsed to market rental rate changes or d) seasonality of our business; e) interesf rate fluctuations; f) changes in governmental regulations, includintg federal income tax laws and regulations; g) competition; h) any changese in the Trust's financial condition or operating results due to acquisitions or dispositions of hotel pr operties; i) insufficient resourcesw to pursue our current j) concentration of our investments in the InnSuites brand; k) loss of franchise contracts; l) real estate and hospitalitgy market conditions; m) hospitality industry factors, n) our abilitg to meet present and futurd debt service obligations; o) terrorist attacks or othe acts of war; p) outbreaks of communicable q) natural disasters; and r) loss of key .
From time to time, thesw and other risks are discussesd inthe Trust's Annual Report on Form 10-K and other filings with the Securitied and Exchange Commission.