Chinese economy hotel chain Home Inns & Hotels Management, Inc. (HMIN: Quote) reported Monday a profit for the fourth quarter that plunged from last year, reflecting higher charges as well as lower revenues per room and occupancy rate. The company also provided revenue forecast for the first quarter and full-year 2013, both above Street view.
The Shanghai, China-based company reported net income of RMB 6.28 million or $1 million for the fourth quarter, sharply down from RMB 32.66 million in the prior-year quarter. On a per ADS basis, profit totaled RMB 0.14 or $0.02, compared to a loss of RMB 0.12 last year.
Excluding items, adjusted net income for the quarter was RMB 80.61 million or $12.94 million, compared to RMB 36.6 million in the year-ago quarter. On a per ADS basis, adjusted profit was RMB 1.74 or $0.28, compared to RMB 0.73 last year.
On average, four analysts polled by Thomson Reuters expected the company to report earnings of $0.16 per share for the quarter. Analysts’ estimates typically exclude special items.
Total revenues for the quarter improved 11.9 percent to RMB 1.47 billion or $235.26 million, from RMB 1.31 billion in the same quarter last year. Six Wall Street analysts had a consensus revenue estimate of $221.97 million.
Revenue per available room or RevPAR, for the quarter declined to RMB 138 from last years RMB 141, driven by continued market softness across China despite signs of improvements in certain macroeconomic indicators.
Occupancy rate also dipped 40 basis points to 83.8 percent from last year’s 84.2 percent, and average daily rate decreased to RMB 165 from RMB 168 a year ago. For fiscal 2012, the company reported a net loss of RMB 26.78 million or $4.30 million, compared to net income of RMB 351.53 million in the prior year. On a per ADS basis, loss totaled RMB 0.59 or $0.09, compared to profit of RMB 2.51 last year.
Excluding items, adjusted net income for the quarter was RMB 300.35 million or $48.21 million, compared to RMB 326.1 million in the year ago. On a per ADS basis, adjusted profit was RMB 6.62 or $1.06, compared to RMB 6.92 last year.
Total revenues for the full year uncreased 45.7 percent to RMB 5.77 billion or $926.1 million, from RMB 3.96 billion in the previous year.
Analysts expected the company to report full-year 2012 earnings of $0.54 per share on annual revenues of $872.96 million.
Looking ahead to the first quarter of fiscal 2013, the company expects total revenues in a range of RMB 1.385 billion to RMB 1.415 billion or $222.3 million to $227.1 million, while analysts are looking for $214.69 million.
For fiscal 2013, Home Inns Group expects total revenues in the range of RMB 6.600 billion to RMB 6.800 billion or $1.059 billion to $1.092 billion. Street is currently looking for full-year 2013 revenues of $1.03 billion.
HMIN closed Monday’s regular trading session at $30.25, down $0.14 or 0.46% on a volume of 0.67 million shares.
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by RTT Staff Writer
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