SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C.
FORM 10-Q
Quarterly Report under Section 13 or 15 (d) of the
Securities Exchange Act of 1934
For Quarter Ended_____MAR 31, 1996________Commission File No.0-1957
UPTOWNER INNS, INC.
Exact name of registrant as specified in its charter
West Virginia 55-0457171
State or other jusrisdiction of I.R.S. Employer
incorporation or organization Identification Number
1415 4th Avenue, Huntington, West Virginia 25701
Address of principal executive office Zip Code
Registrants telephone number, including area code (304) 525-7741
Indicate by check mark whether registrant:
(1) Has filed all reports required to be filed by
Section 13 or 15 (d) of the Securities Exchange
Act of 1934 during the preceding 12 months
(or for such shorter period that the registrant
was required to file such reports), and
(2) Has been subject to such filing requirement for
the past 90 days.
_x_Yes ___No
Indicate the number of Shares outstanding of each of the Issuer's
classes of Common Stock, as of the close of the period covered
by this report.
_________Class_______ Outstanding at _MARCH 31, 1996_________
Common STock-$.50 par value 1,583,563 Shares
-1-
UPTOWNER INNS, INC., AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
MARCH 31, 1996 AND 1995
ASSETS
MARCH 31, JUNE 30 ,
1996 1995 1995
(Unaudited) (Unaudited)
CURRENT ASSETS:
Cash $ 137,702 $ 339,993 $ 298,380
Temporary Investments 396,791 576,065 576,470
Accounts & Notes Rec. 75,400 60,631 86,063
Accts. Rec.--Shareholder -0- 2,318 -0-
Inventories 10,254 9,592 10,703
Prepaid Expenses 12,136 22,217 18,710
TOTAL CURRENT ASSETS 632,283 1,010,816 990,326
PROPERTY, PLANT AND EQUIPMENT
Land 1,058,921 808,921 808,921
Building & Improvement 5,322,204 5,381,975 5,322,204
Furniture & Equipment 1,439,532 1,317,267 1,387,244
Construction in Progress 57,371 -0- -0-
TOTAL 7,878,028 7,508,163 7,518,369
Less: Acc. Dep.
and Amortization 3,555,968 3,400,245 3,393,773
TOTAL PROPERTY, PLANT
AND EQUIPMENT 4,322,060 4,107,918 4,124,596
OTHER ASSETS:
Loan Costs & Franchise Fee 65,000 -0- -0-
Deposits and Other 4,768 4,685 4,185
TOTAL OTHER ASSETS 69,768 4,685 4,185
TOTAL ASSETS 5,024,111 5,123,419 5,119,107
-2-
UPTOWNER INNS, INC., AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
LIABILITIES AND STOCKHOLDERS' EQUITY
MARCH 31, JUNE 30,
1996 1995 1995
(Unaudited) (Unaudited)
CURRENT LIABILITIES:
Accounts Payable $ 42,073 $ 6,094 $ 32,592
Accrued Liabilities 96,457 212,660 89,634
Taxes Other Than Federal
Income Taxes 78,680 16,864 158,236
Current Portion of
Long-Term Debt. 206,000 204,000 261,946
TOTAL CURRENT LIABILITIES 423,210 439,618 542,408
LONG-TERM LIABILITIES
Notes &
Mortgages Payable 2,424,991 2,666,889 2,527,941
Notes Payable -
Stockholders -0- 89,602 -0-
TOTAL LONG-TERM
LIABILITIES 2,424,991 2,756,491 2,527,941
TOTAL LIABILITIES 2,848,201 3,196,109 3,070,349
STOCKHOLDER'S EQUITY
Common Stock, par value $0.50 per
share; authorized -
shares; 791,782 791,782 791,782
Additional Paid-In
Capital 1,032,290 1,032,290 1,032,290
Retained Earnings 351,838 103,238 224,686
TOTAL STOCKHOLDERS
EQUITY 2,175,910 1,927,310 2,048,758
TOTAL LIABILITIES AND
STOCKHOLDERS EQUITY 5,024,111 5,123,419 5,119,107
-3-
UPTOWNER INNS, INC., AND SUBSIDIARIES
CONSOLIDATED INCOME STATEMENT (UNAUDITED)
FOR THE PERIODS ENDED MARCH 31, 1996 AND 1995
THREE MONTHS ENDED NINE MONTHS ENDED
3/31/96 3/31/95 3/31/96 3/31/95
REVENUES:
Rooms $ 262,003 $ 342,545 $ 976,367 $ 1,143,349
Food & Beverage 85,387 97,278 328,193 324,588
Telephone 542 8,438 20,620 33,246
Other 12,376 12,484 58,511 32,538
Rents 55,812 60,793 170,825 70,809
TOTAL REVENUE 416,120 521,538 1,554,516 1,704,530
COSTS AND EXPENSES:
Operating Departments
Cost of Sales 69,329 49,310 198,394 176,422
Salaries & Wages 97,356 104,137 328,513 346,067
Other 45,063 68,019 146,017 180,561
General & Admin. 21,582 32,367 82,816 112,508
Advertising 15,301 23,692 49,672 61,153
Utilites 34,399 31,294 99,656 98,698
Repair & Maint. 18,747 5,194 67,063 76,715
Interest 50,070 56,654 153,486 179,210
Taxes & Licenses 37,330 40,383 128,307 149,040
Insurance 20,508 21,080 37,666 46,254
Deprec. & Amort. 51,773 62,138 162,196 186,414
TOTAL COST AND
EXPENSE 461,458 494,268 1,453,786 1,613,042
OPERATING INCOME
(LOSS) (45,338) 27,270 100,730 91,488
OTHER INCOME (EXPENSE)
Interest Income 30,799 -0- 30,799 -0-
Gain/Loss on Property, Plant,
and Equipment -0- -0- -0- 281,664
NET INCOME (LOSS)
BEFORE TAXES (14,539) 27,270 131,529 373,152
FEDERAL INCOME TAXES
AND PENALTIES
Provision for
Taxes on Income -0- -0- 4,377 -0-
Deferred Federal
Income Taxes -0- -0- -0- -0-
TOTAL FEDERAL
INCOME TAXES -0- -0- 4,377 -0-
TOTAL NET INCOME
(LOSS) (14,539) 27,270 127,152 373,152
EARNINGS PER SHARE (.01) .02 .08 .24
DIVIDENDS PER SHARE -0- -0- -0- -0-
-4-
UPTOWNER INNS, INC., AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED)
FOR THE NINE MONTHS ENDED MARCH 31,
1996 1995
CASH FLOW FROM OPERATING ACTIVITIES:
Net Income (Accrual Basis; from
Statement of Income $ 127,152 $ 91,488
Add (Deduct) to Reconcile Net Income to
Net Cash Flow:
Accts. Receivables
(Increase) Decrease 10,663 (10,625)
Inventories (Increase) Decrease 449 9,014
Prepaid Expenses Decrease (Increase) 6,574 ( 963)
Accounts Payable (Decrease) Increase 9,481 (25,214)
Accrued Liabilities (Decrease) Increase 6,822 (23,762)
Taxes Other Than Federal Income
Tax Increase (Decrease) (79,556) 1,962
Depreciation and Amortization Expense
(Including Franchise) 162,196 186,414
NET CASH OUTFLOW FROM OPERATIONS 243,781 228,314
CASH FLOW FROM INVESTING ACTIVITIES:
Cash Inflow:
From Sale of Investments 179,679 -0-
From Sale of Operational Assets -0- 750,000
From Decrease (Inc.) of Other Assets (65,583) 7,275
From Purchase of Operational Assets (359,659) (9,547)
NET CASH INFLOW (OUTFLOW) FROM INVESTING
ACTIVITIES (245,563) 747,728
CASH FLOW FROM FINANCING ACTIVITIES:
Payment on Notes and Mortgages (158,896) (179,183)
NET CASH INFLOW (OUTFLOW) FROM FINANCING
ACTIVITIES (158,896) (179,183)
Net Increases (Decreases) in Cash Plus Cash
Equivalents for the Nine Months (160,678) 796,859
Cash Plus Cash Equivalents at July 1 298,380 119,199
Cash Plus Cash Equivalents at March 31 137,702 916,058
Cash Paid for Interest in Nine Months 149,900 175,624
Cash Paid for Income Tax in Nine Months 4,377 -0-
-5-
UPTOWNER INNS, INC., AND SUBSIDAIRIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
MARCH 31, 1996
1. The financial statements presented reflect Uptowner Inns, Inc.,
and its consolidated subsidiary: Motel and Restaurant Supply.
2. The foregoing statements are unaudited; however, in the opinion
of Management, all adjustments (comprising only normal recurring
accruals) necessary for a fair presentation of the financial
statements have been included. A summary of the Corporation's
significant accounting policies is set forth in Note 1 to the
Consolidated Financial Statements in the Corporation's Annual
Report to shareholders and Form 10-K for June 30, 1995.
-6-
UPTOWNER INNS, INC., AND SUBSIDIARIES
MANAGEMENTS DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
MARCH 31, 1996
Revenues in the current nine month period decreased 8.8% due
to a general decline in demand for rooms (down 14.6%).
Management has continued a close monitoring of costs and reduced
the total costs by 9.9%, resulting in an increase in operating
income of $9,242 (up 10.1%) from the nine months ended in the
previous year. Salaries and wages decreased 5%, other costs and
expenses declined 19.1%, General and Administrative reduced
26.4%, Advertising was 18.8% lower, interest decreased 14.4%,
taxes and licenses dropped 13.9%, Insurance was 18.6% less and
depreciation was down 13% These decreases were offset by the
higher costs of sales (up 12.5%). Management constantly monitors
costs to maintain more efficiency in costs, and the interest rate
decline from the previous year has resulted (with less debt) in
lower interest.
The liquidity has reduced from 2.3 at 3/31/95 to 1.83 at
6/30/95 to 1.49 at 3/31/96. The major reason for the reduction
was over $372,000 in payment for a franchise renewal ($65,000),
down payment on real estate to build a hotel ($250,000), and some
initial costs to move the project further.
-7-
UPTOWNER INNS, INC., AND SUBSIDIARIES
SIGNATURES
MARCH 31, 1996
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on its
behalf by the undersigned thereunto duly authorized.
UPTOWNER INNS, INC.
(Registrant)
Date: April 17, 1996 By:
Violet Midkiff
President
Date: April 17, 1996 By:
James C. Camp
Treasurer
-8-
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<FISCAL-YEAR-END> JUN-30-1995
<PERIOD-END> MAR-31-1996
<CASH> 137,702
<SECURITIES> 396,791
<RECEIVABLES> 78,400
<ALLOWANCES> 3,000
<INVENTORY> 10,254
<CURRENT-ASSETS> 632,283
<PP&E> 7,878,028
<DEPRECIATION> 3,555,968
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<COMMON> 791,782
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<SALES> 328,193
<TOTAL-REVENUES> 1,554,516
<CGS> 198,394
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<INTEREST-EXPENSE> 153,486
<INCOME-PRETAX> 131,529
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<INCOME-CONTINUING> 127,152
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