Hilton Hotels Corporation (NYSE:HLT) today reported pro forma results for the fourth quarter and fiscal year ended December 31, 1999. The pro forma results for all periods are presented as if the acquisition of Promus Hotel Corporation had been completed as of January 1, 1998, and exclude expected synergies from the combination.
Pro Forma Financial Results:
Net income for the fourth quarter was $25 million, compared to $22 million for the same period a year ago, an increase of 14 percent. Diluted net income per share increased 17 percent to $.07 per share from $.06 per share a year ago. Earnings before interest, taxes, depreciation, amortization and non-cash items (EBITDA) rose 6 percent to $246 million. EBITDA benefited from hotel acquisitions made in 1999 and strong performances at selected Hilton owned hotels. EBITDA was negatively impacted by asset sales, a decline in purchasing and service fees, a decline in the performance of certain comparable properties, including many Doubletree hotels, a difficult comparison at the Hilton San Francisco and a soft Phoenix market.
For the full year 1999, net income rose 10 percent to $216 million from $197 million in 1998. Diluted net income per share increased 14 percent to $.58 per share from $.51 per share in 1998. EBITDA for the year increased 8 percent to $1.094 billion from $1.016 billion a year ago.
Included in EBITDA are non-recurring charges totaling $41 million and $26 million for the three months ended December 31, 1998 and 1999, respectively, and $51 million and $36 million for the twelve months ended December 31, 1998 and 1999, respectively. The per share impact of the non-recurring charges was $.10 and $.04 for the three months ended December 31, 1998 and 1999, respectively, and $.11 and $.06 for the twelve months ended December 31, 1998 and 1999, respectively. Non-recurring charges include business combination expenses related to Hilton`s acquisition of Promus and business combination and other costs associated with the Promus-Doubletree merger, as well as spin-off costs incurred in 1998.