Prime Hospitality Corp.
(NYSE: PDQ), a leading hotel owner, operator and franchisor, reported its
results for the fourth quarter and year ended December 31, 2001.
Net income before asset transactions and other charges for the fourth
quarter was approximately $760,000, or $.02 per share, compared to
$12.0 million, or $.26 per share, for the fourth quarter of 2000.
Total net income, which includes gains from the termination of leases,
gains on asset sales and other non-recurring items, was $4.8 million, or
$.11 per share, for the fourth quarter of 2001 compared to $12.0 million, or
$.26 per share, for the same period in 2000.
“The combination of the recession and the impact of the September 11
terrorist attacks presented a very challenging environment for Prime and the
entire travel industry,” said A.F. Petrocelli, Chairman and Chief Executive
Officer of Prime. “While our results are down from the prior year, I am very
pleased with how our Company has responded to the challenge.”
“Our operating results fared better than we expected due to aggressive
holiday promotions and several new cost containment programs. We launched our
new expanded rewards program on September 1 during a very difficult time and
we have already added over 50,000 new members increasing our revenue
contribution from frequent guests by 33%. We were also successful in
selling real estate, generating approximately $38 million in proceeds since
September 11. The combination of positive cash flow and proceeds from asset
sales has strengthened our balance sheet and lowered our leverage to 31% of
Mr. Petrocelli concluded, “We believe our Company is well positioned to
meet the challenges of a difficult economic environment and to take advantage
of opportunities for growth.”
For the year ended December 31, 2001, net income was $40.2 million, or
$.88 per share, compared to $62.5 million, or $1.34 per share, for the same
period in 2000. Net income before asset transactions and other charges was
$27.0 million, or $.59 per share, for 2001 as compared to $54.3 million, or
$1.17 per share, for the same period in 2000.