Four Seasons Hotels Inc. Reports Record Earnings For 1998

Four Seasons Hotels Inc.—(TSE/ME Symbol “FSH”;
NYSE Symbol “FS”) today reported its fourth quarter 1998 and year-end results for the period
ended December 31, 1998.
Normalized net earnings 1 for the quarter ended December 31, 1998 increased to $26.5 million
($0.79 normalized earnings per share), as compared to $20.3 million ($0.61 normalized earnings
per share) for the quarter ended December 31, 1997. For the year ended December 31, 1998,
normalized net earnings increased 30.4% to $68.8 million ($2.04 normalized earnings per share),
as compared to $52.8 million ($1.61 normalized earnings per share) for the year ended December
31, 1997.
“Despite the extremely difficult economic conditions in the Asian markets, Four Seasons was
able to exceed its long-term earnings growth target of 20% in 1998. This demonstrates the
ability of our high-margin management services business to grow even in difficult economic
conditions,” said Isadore Sharp, Chairman and Chief Executive Officer.
Consolidated revenues increased 3.5% to $ 248.8 million for the year ended December 31, 1998,
as compared to $240.4 million in 1997. Net earnings were $69.7 million for the year ended
December 31, 1998, as compared to net earnings of $40.8 million in 1997. Net earnings were $27.4 million for the quarter ended December 31, 1998, as compared to $20.3 million for the
same period in 1997.
1 Normalized net earnings excludes unusual, non-recurring items. In 1998, normalized net earnings excludes $14.0
million of foreign exchange gains, $12.7 million provision for loss, and $0.4 million loss on repurchase of debt (for
a total of $0.02 earnings per share). In 1997, normalized net earnings excludes a $12 million charge associated with
the refinancing of the US dollar high yield debt ($0.37 loss per share.)
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