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 September 30, 1999 Commission File No. 0-1957
UPTOWNER INNS, INC.
Exact name of registrant as specified in its charter
West Virginia 55-0457171
State or other jurisdiction 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 September 30, 1999
Common Stock-$.50 par value 1,583,563 Shares
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UPTOWNER INNS, INC. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEET
ASSETS
SEPTEMBER 30, JUNE 30,
1999 1998 1999
(Unaudited) (Unaudited)
<TABLE>
<S> <C> <C> <C>
CURRENT ASSETS:
Cash $ 367,670 $ 239,066 $ 322,663
Accounts & Notes Rec. 167,611 120,847 169,918
Inventories 11,971 15,236 11,197
Prepaid Expenses 42,983 31,130 65,309
TOTAL CURRENT ASSETS 590,235 406,279 569,087
INVESTMENTS & FUNDS
Notes Receivable -0- 47,416 -0-
TOTAL INVESTMENTS & FUNDS -0- 47,416 -0-
PROPERTY, PLANT AND EQUIPMENT
Land 1,480,612 1,495,612 1,480,612
Building & Improvement 10,830,583 10,610,074 10,768,710
Construction in Progress -0- -0- -0-
Furniture & Equipment 2,538,402 2,452,173 2,512,955
TOTAL 14,849,597 14,557,859 14,762,277
Less: Accumulated Depreciation
and Amortization 4,093,120 3,750,351 3,986,965
TOTAL PROPERTY, PLANT
AND EQUIPMENT 10,756,477 10,807,508 10,775,312
OTHER ASSETS:
Deposits and Other 122,180 128,745 117,896
TOTAL OTHER ASSETS 122,180 128,745 117,896
TOTAL ASSETS 11,468,892 11,389,948 11,462,295
</TABLE>
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UPTOWNER INNS, INC. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEET
LIABILITIES AND STOCKHOLDERS' EQUITY
SEPTEMBER 30, JUNE 30,
1999 1998 1999
(Unaudited) (Unaudited)
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CURRENT LIABILITIES:
Accounts Payable $ 622,155 $ 575,453 $ 591,840
Accrued Liabilities 169,855 208,175 179,605
Taxes Other Than Federal
Income Taxes 256,471 234,891 312,513
Current Portion of
Long-Term Debt 1,275,000 1,009,425 1,265,006
TOTAL CURRENT LIABILITIES 2,323,481 2,027,944 2,348,964
LONG-TERM LIABILITIES
Notes & Mortgages Payable 6,822,163 7,163,701 6,913,472
TOTAL LONG-TERM LIABILITIES 6,822,163 7,163,701 6,913,472
TOTAL LIABILITIES 9,145,644 9,191,645 9,262,436
STOCKHOLDERS' EQUITY
Common Stock, par value $0.50 per
share; authorized - 5,000,000
shares; issued 1,583,563 791,782 791,782 791,782
Additional Paid-In
Capital 1,032,290 1,032,290 1,032,290
Retained Earnings 499,176 374,231 375,787
TOTAL STOCKHOLDERS'
EQUITY 2,323,248 2,198,303 2,199,859
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY 11,468,892 11,389,948 11,462,295
</TABLE>
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UPTOWNER INNS, INC. AND SUBSIDIARY
CONSOLIDATED INCOME STATEMENT (UNAUDITED)
FOR THE THREE MONTHS ENDED SEPTEMBER 30
THREE MONTHS ENDED THREE MONTHS ENDED
09/30/99 09/30/98
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REVENUES:
Rooms $ 915,160 $ 391,595
Food & Beverage 83,139 75,370
Telephone 13,101 8,690
Other 58,559 60,074
Rents 21,000 25,756
TOTAL REVENUE 1,090,959 561,485
COSTS AND EXPENSES:
Cost of Sales 46,309 37,749
Salaries & Wages 224,203 188,930
Other 97,499 49,450
General & Administrative 67,323 34,760
Advertising 27,851 10,350
Utilities 59,643 39,851
Repair & Maintenance 46,772 20,354
Interest 182,803 113,922
Taxes & Licenses 84,139 50,296
Insurance 24,970 21,645
Deprec. & Amort. 107,779 58,413
TOTAL COST & EXPENSES 969,291 625,720
OPERATING INCOME (LOSS) 121,668 (64,235)
OTHER INCOME:
Interest Income 1,721 550
Gain on Sale of Assets -0- 175,158
TOTAL OTHER INCOME 1,721 175,708
NET INCOME (LOSS)
BEFORE TAXES 123,389 111,473
FEDERAL INCOME TAXES
Provision for Taxes
on Income -0- -0-
Deferred Federal
Income Taxes -0- -0-
TOTAL FEDERAL INCOME
TAXES -0- -0-
TOTAL NET INCOME (LOSS) 123,389 111,473
EARNINGS PER SHARE 0.08 0.07
DIVIDENDS PER SHARE -0- -0-
</TABLE>
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UPTOWNER INNS, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED)
FOR THE THREE MONTHS ENDED MARCH 31
1999 1998
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CASH FLOW FROM OPERATING ACTIVITIES:
Net Income (Accrual Basis; from
Statement of Income) $ 123,389 $ 111,473
Add (Deduct) to Reconcile Net Income to
Net Cash Flow:
Accounts Receivable (Increase) Decrease 2,307 (97,121)
Inventories (Increase) Decrease (774) (7,874)
Prepaid Expenses Decrease (Increase) 20,702 20,420
Accounts Payable (Decrease) Increase 30,315 57,866
Accrued Liabilities (Decrease) Increase (9,750) 62,366
Taxes Other Than Federal Income Tax
Increase (Decrease) (56,042) 34,492
Increase in Deposits (4,284) 542
Depreciation and Amortization Expense 107,779 58,413
Gain on Sale of Assets -0- (175,158)
NET CASH INFLOWS FROM OPERATIONS 213,642 65,419
CASH FLOW FROM INVESTING ACTIVITIES:
Cash Inflows:
Proceeds from Sale of Real Estate -0- 184,523
Collection of Note -0- 2,084
Cash Outflows:
Paid for Operational Assets
and Other (87,320) (348,011)
NET CASH INFLOW (OUTFLOW) FROM INVESTING
ACTIVITIES (87,320) (161,404)
CASH FLOW FROM FINANCING ACTIVITIES:
Cash Outflows:
Loan Proceeds 8,673 315,245
Payment on Notes and Mortgages (89,988) (70,209)
NET CASH INFLOW (OUTFLOW) FROM FINANCING
ACTIVITIES (81,315) 245,036
Net Increases (Decreases) in Cash Plus Cash
Equivalents for the Three Months 45,007 149,051
Cash Plus Cash Equivalents at July 1 322,663 90,015
Cash Plus Cash Equivalents at September 30 367,670 239,066
Cash Paid for Interest in the Three Months 181,608 87,581
Cash Paid for Income Tax in the Three Months -0- -0-
</TABLE>
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UPTOWNER INNS, INC. AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
SEPTEMBER 30, 1999
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, 1999.
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UPTOWNER INNS, INC. AND SUBSIDIARY
MANAGEMENTS DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
SEPTEMBER 30, 1999
The quarter ending September 30, 1999 resulted in earnings per
share of $.07 which was equal to the comparable period in the previous
year. Eleven cents per share resulted from property sales and operations
incurred a $.04 per share loss. Therefore, the current quarter is improved
when comparing operating income.
Revenues are up 193% over the first quarter of 1998 with Room Revenues
increasing 234%, Food and Beverage 110% and Telephone 151%. These were the
result of the Holiday Inn Hotel & Suites operating for the complete quarter
in 1999 and only slightly over one month in 1998. Rents decreased 3% due to
the disposal of some rental properties in the previous year and other
revenues decreased $4,756.
Costs and Expenses increased 155% due to the new hotel operating a
full quarter in 1999 and causing every category of expenses to increase.
Significantly, Other Expenses increased 197% due mainly to reservation fees
required by the Holiday Inn and Travelodge franchises. Advertising increased
269% due mainly to the required Holiday Inn advertising fees. The other
items in Costs and Expenses are a result of the new facility.
The Statement of Cash Flows indicates an increase in cash caused by a
substantial improvement in operating activities. The current ratio is .25
and is a very slight improvement from the .24 at June 30, 1999. It is not
anticipated that the current ratio will improve in the next twelve months.
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UPTOWNER INNS, INC. AND SUBSIDIARY
SIGNATURES
SEPTEMBER 30, 1999
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: October 30, 1999 By /s/ Violet Midkiff
Violet Midkiff
President
Date: October 30, 1999 By /s/ James R. Camp
James R. Camp
Treasurer
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<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> JUN-30-1999
<PERIOD-END> SEP-30-1999
<CASH> 367,670
<SECURITIES> 0
<RECEIVABLES> 167,611
<ALLOWANCES> 0
<INVENTORY> 11,971
<CURRENT-ASSETS> 590,235
<PP&E> 14,849,597
<DEPRECIATION> 4,093,120
<TOTAL-ASSETS> 11,468,892
<CURRENT-LIABILITIES> 2,323,481
<BONDS> 0
0
0
<COMMON> 791,782
<OTHER-SE> 1,032,290
<TOTAL-LIABILITY-AND-EQUITY> 11,468,892
<SALES> 83,139
<TOTAL-REVENUES> 1,090,959
<CGS> 46,309
<TOTAL-COSTS> 969,291
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 182,803
<INCOME-PRETAX> 0
<INCOME-TAX> 0
<INCOME-CONTINUING> 121,668
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 123,389
<EPS-BASIC> 0.08
<EPS-DILUTED> 0
</TABLE>
