Four Seasons Hotels Inc. (TSE-ME Symbol
“FSH”, NYSE Symbol “FS”) today reported its results for the third quarter ended September
30, 1998. For the third quarter of 1998, normalized net earnings were $16.7 million or $0.49
basic and fully diluted normalized earnings per share, as compared to normalized net earnings of
$13.1 million or $0.40 basic and fully diluted normalized earnings per share for the same period
in 1997. For the nine months ended September 30, 1998, normalized net earnings were $42.3
million or $1.25 basic and fully diluted normalized earnings per share, as compared to
normalized net earnings of $32.5 million or $1.00 basic and fully diluted normalized earnings per
share for the comparable period of 1997. These comparative normalized earnings do not include
a $6.1 million foreign exchange gain, a provision for loss of $5.8 million relating to certain Asian
management contracts, and a loss on repurchase of debt of $376,000 which occurred during the
three months ended September 30, 1998, or the $12 million charge associated with the
refinancing of the Company’s U.S. dollar high yield debt which occurred during the same period
in 1997.
“We are pleased with the third quarter results and the growth in earnings which has been realized through the first nine months of 1998. As expected, the third quarter financial improvement is the
result of both continued good operating performance and the additional management fees being
realized from new contracts and recently opened hotels under Four Seasons management,” said
Isadore Sharp, Chairman and Chief Executive Officer. “Over the next few years we expect that
most of our growth will be from the addition of new hotels and resorts which are now under
construction. Within the next 24 months we expect to add 13 new Four Seasons properties to our
global portfolio.”
Net earnings for the third quarter of 1998 were $16.7 million ($0.49 basic and fully diluted
earnings per share). Net earnings for the third quarter of 1997 were $1.1 million, including the
one-time charge of $12 million associated with the costs incurred in connection with the
refinancing of the Company’s U.S. dollar high yield notes completed in July 1997. Net earnings
for the nine month period ending September 30, 1998 were $42.3 million ($1.25 basic and fully
diluted earnings per share), as compared to $20.5 million ($0.63 basic and fully diluted earnings
per share) for the nine months ended September 30, 1997, which included the one-time charge
associated with the debt refinancing.
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