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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 8-K
Current Report
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) April 25, 1995
PRIME HOSPITALITY CORP.
(Exact name of Registrant as specified in its charter)
COMMISSION FILE NO. 1-6869
DELAWARE 22-2640625
(State or other jurisdiction of (IRS employer
incorporation or organization) identification no.)
700 ROUTE 46 EAST, FAIFIELD, NEW JERSEY 07004
(address of principal executive offices) (zip code)
REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE: (201) 882-1010
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Item 5. Other Events
Prime Hospitality Corp. (the "Company" or "Prime") announced its
results for the first quarter ended March 31, 1995. For the quarter, Prime
reported earnings of $4.2 million or $.13 per share before extraordinary items
as compared to $2.8 million or $.09 per share in the first quarter of 1994.
Income from recurring operations increased by 89% to $.13 per share in the
first quarter of 1995 from $.07 per share in the first quarter of 1994.
Earnings Summary
(In thousands, except per share amounts)
<TABLE>
<CAPTION>
Three Months Ended
March 31,
1994(1) 1995
-------- ------
<S> <C> <C>
Total revenues ..................................... $ 28,079 $ 48,238
======== ========
Costs and expenses:
Direct hotel operating expenses ............... 13,394 27,179
Occupancy and other ........................... 2,250 2,610
General and administrative .................... 3,644 3,873
Depreciation and amortization ................. 1,941 3,976
-------- --------
Total costs and expenses .................. 21,229 37,638
======== ========
Operating income ................................... 6,850 10,600
-------- --------
Interest expense ................................... 3,632 4,100
-------- --------
Income before nonrecurring items,
net of taxes .................................. 2,228 4,208
Nonrecurring items, net of taxes ................... 612 --
-------- --------
Income before extraordinary items .................. 2,840 4,208
Extraordinary items - gains on discharges
of indebtedness, net of taxes ................. 111 7
-------- --------
Net income ......................................... $ 2,951 $ 4,215
======== ========
Net income per common share:
Income before nonrecurring items .............. $ .07 $ .13
Nonrecurring items ............................ .02 --
-------- --------
Income before extraordinary items ............. .09 .13
Extraordinary items ........................... -- --
-------- --------
Net income per common share ........................ $ .09 $ .13
======== ========
Other data:
Earnings before interest, taxes,
depreciation and amortization ............... $ 8,791 $ 14,575
</TABLE>
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(1) Earnings per share have been restated for 1994 to reflect a 9.4%
retroactive reduction in the number of shares distributed under the plan of
reorganization of the Company's predecessor.
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The Company attributed the earnings increase to continued growth in
room rates at comparable hotels and the addition of 11 hotels through
acquisition or construction during 1994. During the quarter, revenue per
available room increased by 8.5% at the comparable owned hotels reflecting the
Company's repositioning efforts, yield management programs and improvements in
the industry.
On April 19, 1995, Prime offered for sale $75 million of Convertible
Subordinated Notes due April 15, 2002. The notes bear interest at 7% and are
convertible into common stock at a price of $12 per share at the option of the
holder. The offering is scheduled to be consummated on April 26, 1995. The issue
also includes an additional $11,250,000 of notes that are subject to a 30-day
option granted to the underwriters to cover over-allotments, if any. The Company
plans to use the proceeds primarily to finance the development and acquisition
of hotels or hotel portfolios.
Prime Hospitality owns or manages 87 hotels throughout the United
States under its proprietary tradenames AmeriSuites and Wellesley Inns, and
under franchise agreements with national hotel chains, including Marriott,
Radisson, Sheraton, Holiday Inn, Ramada and Howard Johnson.
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SIGNATURES
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.
PRIME HOSPITALITY CORP.
Date: April 25, 1995 By: /s/ David A. Simon
-----------------------------
David A. Simon, President and
Chief Executive Officer
Date: April 25, 1995 By: /s/ John M. Elwood
-----------------------------
John M. Elwood, Executive
Vice President and Chief
Financial Officer
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