SPOKANE, WA-WestCoast Hospitality Corp. is reporting this morning a 9.6% drop in third quarter earnings. Higher interest costs, depreciation and amortization, income taxes and a one time non-cash charge for conversion costs reduced net income $240 thousand, or 6.1%, from $3.9 million in the third quarter of 1999, to $3.6 million for the same period this year. Earnings per share for the period declined from 31 cents to 28 cents.
Meanwhile, Earnings Before Interest, Taxes, Depreciation and Amortization increased 20% during the quarter to $12.2 million, and total revenues for the quarter increased 9.3% to $36.9 million. In addition, operating margins in the hotel division increased 7/10ths of a percent to 33.9%, showing increased synergies since its purchase of WestCoast Hotels. Revenue Per Available Room increased 5.5% during the quarter, on increases to both occupancy and Average Daily Rate.
The Company’s Real Estate division revenues declined slightly, from $2.4 million in the third quarter of 1999, to $2.3 million in the same quarter this year. Operating margins in the division increased, from 52.1% to 53.0% this year, maintaining the contribution to overall profits within $23 thousand.
In the TicketsWest.com division, revenues declined year on year due primarily to exceptionally strong prior year results. In addition, less than expected revenue and lower margins from the company’s Fastixx ticketing operation contributed to the overall division’s negative performance.
In light afternoon trading, shares of WestCoast Hospitality were up 12.5 cents from Wednesday to $5.125. Shares hit a 52-week low yesterday. It’s 52-week high came Dec. 27, 1999, when shares traded for as high as $8.62.