Four Seasons Hotels Inc. (TSE Symbol “FSH”; NYSE Symbol “FS”) today
reported its results for the fourth quarter of 2001 and for the year ended December 31, 2001.
In a period marked by significant economic and travel disruptions, net earnings for the quarter ended
December 31, 2001 were $9.3 million ($0.27 basic and diluted earnings per share 1 ), as compared to $38.5
million ($1.11 basic earnings per share and $0.97 diluted earnings per share) for the quarter ended
December 31, 2000. During the fourth quarter, the Company incurred $1.2 million of corporate
restructuring costs and recognized a $2.4 million loss on redemption of its $100 million 6% debentures due
July 2, 2002 (the “Canadian Debentures”), together with other non-recurring items. On a normalized 2
basis, net earnings decreased to $11.3 million ($0.32 basic and diluted earnings per share), as compared
to $34.8 million ($1.00 basic earnings per share and $0.88 diluted earnings per share) for the quarter ended
December 31, 2000.
For the year ended December 31, 2001, net earnings were $86.5 million ($2.48 basic earnings per share
and $2.27 diluted earnings per share), as compared to $103.1 million ($2.98 basic earnings per share and
$2.63 diluted earnings per share) for the year ended December 31, 2000. During 2001, the Company
recognized non-recurring items, including gains on asset dispositions of $30.4 million and a recovery of a
loss provision of $4.8 million, incurred $2.2 million of corporate restructuring costs, and recognized a $2.4
million loss on redemption of the Canadian Debentures. On a normalized basis, net earnings decreased
to $56.4 million ($1.61 basic earnings per share and $1.52 diluted earnings per share), as compared to
$96.3 million ($2.78 basic earnings per share and $2.46 diluted earnings per share) for the year ended
December 31, 2000.
“After the tragic events of September 11 th the global travel industry experienced an unprecedented
slowdown, resulting in a significant decline in our earnings during 2001,” said Isadore Sharp, Chairman and
Chief Executive Officer. “During these difficult times, our business model has been stress tested well
beyond the limits of any prior economic cycle, and we maintained sound profitability levels, both at a
corporate level and for our hotel owners. Our business model has demonstrated its strength and
fundamental profitability, and we are entering 2002 with the strongest balance sheet in the Company’s
history. We look to the future with great confidence as we expect to add five new Four Seasons hotels
and resorts to our portfolio in 2002, with nine additional new projects scheduled to open in 2003. We also
expect the gradual recovery of demand levels in our existing properties to begin in the latter part of 2002.”
Consolidated revenues decreased 26% to $76.9 million for the quarter ended December 31, 2001, as
compared to $104.1 million for the quarter ended December 31, 2000. Consolidated revenues decreased
13% to $303.1 million for the year ended December 31, 2001, as compared to $347.5 million in 2000.
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