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§ | Operating revenues1 improved 14% to $156 million. |
§ | EBITDA2increased sharply to $21 million compared to $10 million for same period in 2003. |
§ | Revenue per available room (“RevPAR”) for the comparable owned portfolio improved 17.9%. Occupancy improved 6.0 points (11.9%) and average daily rate (“ADR”) increased 5.4%. |
§ | Acquired the Monte Carlo Grand Hotel, in a joint venture with Kingdom Hotels International (“Kingdom”) and Bank of Scotland Corporate. |
(In millions) | 2005 Guidance | |||
EBITDA | $ | 185 - $195 | ||
Net Income | $ | 58 - $65 | ||
Diluted earnings per share(4) | $ | 0.79 - $0.87 |
(In millions) | Year ended December 31 | ||||||
2004 | 2003 | ||||||
EBITDA | $ | 181 | $ | 142 | |||
Less: EBITDA from sold hotels(3) | (20 | ) | (28 | ) | |||
EBITDA from real estate activities | (6 | ) | (10 | ) | |||
EBITDA adjusted for 2004 hotel sales and real estate activities | $ | 155 | $ | 104 |
Three months ended December 31 | Year ended December 31 | |||||||
2004 | 2003 | Variance | 2004 | 2003 | Variance | |||
OWNEDHOTELS | ||||||||
Worldwide 13 properties/ 6,364 rooms | ||||||||
RevPAR | 99.89 | 84.74 | 17.9% | 117.78 | 99.69 | 18.1% | ||
ADR | 176.50 | 167.47 | 5.4% | 188.83 | 179.17 | 5.4% | ||
Occupancy | 56.6% | 50.6% | 6.0 points | 62.4% | 55.6% | 6.8 points | ||
Canada 7 properties/ 3,336 rooms | ||||||||
RevPAR | 84.76 | 72.98 | 16.1% | 114.93 | 99.67 | 15.3% | ||
ADR | 149.14 | 136.18 | 9.5% | 174.01 | 163.44 | 6.5% | ||
Occupancy | 56.8% | 53.6% | 3.2 points | 66.0% | 61.0% | 5.0 points | ||
U.S. and International 6 properties/ 3,028 rooms | ||||||||
RevPAR | 116.55 | 97.36 | 19.7% | 120.89 | 99.71 | 21.2% | ||
ADR | 206.88 | 205.49 | 0.7% | 207.11 | 199.81 | 3.7% | ||
Occupancy | 56.3% | 47.4% | 8.9 points | 58.4% | 49.9% | 8.5 points | ||
FAIRMONT MANAGED HOTELS | ||||||||
Worldwide 40 hotels/ 19,885 rooms | ||||||||
RevPAR | 112.95 | 100.08 | 12.9% | 119.36 | 104.73 | 14.0% | ||
ADR | 187.12 | 173.07 | 8.1% | 184.66 | 172.54 | 7.0% | ||
Occupancy | 60.4% | 57.8% | 2.6 points | 64.6% | 60.7% | 3.9 points | ||
Canada 20 properties/ 10,099 rooms | ||||||||
RevPAR | 85.61 | 75.27 | 13.7% | 100.18 | 86.39 | 16.0% | ||
ADR | 144.21 | 129.39 | 11.5% | 153.43 | 140.38 | 9.3% | ||
Occupancy | 59.4% | 58.2% | 1.2 points | 65.3% | 61.5% | 3.8 points | ||
U.S. and International 20 properties/ 9,786 rooms | ||||||||
RevPAR | 140.70 | 124.88 | 12.7% | 138.75 | 123.14 | 12.7% | ||
ADR | 229.25 | 217.29 | 5.5% | 216.90 | 205.70 | 5.4% | ||
Occupancy | 61.4% | 57.5% | 3.9 points | 64.0% | 59.9% | 4.1 points | ||
DELTA MANAGED HOTELS | ||||||||
Worldwide 27 properties/ 8,171 rooms | ||||||||
RevPAR | 60.95 | 54.23 | 12.4% | 64.43 | 55.36 | 16.4% | ||
ADR | 100.52 | 92.35 | 8.8% | 98.53 | 91.78 | 7.4% | ||
Occupancy | 60.6% | 58.7% | 1.9 points | 65.4% | 60.3% | 5.1 points |
Owned: | The Fairmont Southampton; The Fairmont Copley Plaza Boston; The Fairmont Kea Lani Maui (sold July 2004); The Fairmont Glitter Bay (sold July 2004) | ||
Fairmont Managed: | The Fairmont Southampton; The Fairmont Olympic Hotel, Seattle; The Fairmont Turnberry Isle Resort & Club, Miami; Monte Carlo Grand Hotel | ||
Delta Managed: | Delta Meadowvale and Delta franchised hotels |
1. | Operating revenues excludes other revenues from managed and franchised properties (consists of direct and indirect costs relating primarily to marketing and reservation services that are reimbursed by hotel owners on a cost recovery basis). Management considers that the exclusion of such revenues provides a meaningful measure of operating performance, however, it is not a defined measure of operating performance under Canadian generally accepted accounting principles (“Canadian GAAP”). It is likely that FHR’s calculation of operating revenues is different than the calculation used by other entities. |
2. | EBITDA is defined as earnings before interest, taxes, amortization, gain on sales of investments and hotel assets and other (income) expenses. Income from investments and other is included in EBITDA. Management considers EBITDA to be a meaningful indicator of hotel operations and uses it as the primary measurement of operating segment profit and loss. However, it is not a defined measure of operating performance under Canadian GAAP. It is likely that FHR's calculation of EBITDA is different than the calculations used by other entities. |
Three months ended December 31 | Year ended December 31 | ||||||||||||
In millions of dollars | 2004 | 2003 | 2004 | 2003 | |||||||||
EBITDA | $ | 21 | $ | 10 | $ | 181 | $ | 142 | |||||
Deduct (Add): | |||||||||||||
Gain on sales of investments and hotel assets | 1 | - | (144 | ) | - | ||||||||
Other (income) expenses, net | - | 2 | - | 2 | |||||||||
Amortization | 20 | 17 | 74 | 67 | |||||||||
Interest expense, net | 7 | 11 | 33 | 34 | |||||||||
Income tax expense (recovery) | (3 | ) | (6 | ) | 62 | (12 | ) | ||||||
Net income | $ | (4 | ) | $ | (14 | ) | $ | 156 | $ | 51 |
3. | The Fairmont Kea Lani Maui and The Fairmont Glitter Bay were sold in July 2004. |
4. | The Company’s assumption for the diluted weighted average number of common shares is 82.1 million shares. This assumes the issue of 7.2 million shares relating to the contingently convertible senior notes and the add-back of the annual after-tax interest expense thereon, are included as dilutive for 2005. |
-30- | ||
At December 31 | |||||||
2004 | 2003 | ||||||
OWNED HOTELS | |||||||
Worldwide | |||||||
No. of Properties | 15 | 17 | |||||
No. of Rooms | 7,343 | 7,787 | |||||
Canada | |||||||
No. of Properties | 7 | 7 | |||||
No. of Rooms | 3,336 | 3,268 | |||||
U.S. and International | |||||||
No. of Properties | 8 | 10 | |||||
No. of Rooms | 4,007 | 4,519 | |||||
FAIRMONT MANAGEDHOTELS | |||||||
Worldwide | |||||||
No. of Properties | 45 | 43 | |||||
No. of Rooms | 22,262 | 21,182 | |||||
Canada | |||||||
No. of Properties | 21 | 21 | |||||
No. of Rooms | 10,422 | 10,361 | |||||
U.S. and International | |||||||
No. of Properties | 24 | 22 | |||||
No. of Rooms | 11,840 | 10,821 | |||||
DELTA MANAGED HOTELS | |||||||
Worldwide | |||||||
No. of Properties | 37 | 39 | |||||
No. of Rooms | 11,038 | 11,465 |
Fairmont Hotels & Resorts Inc. |
ASSETS | |||||||
December 31 | December 31 | ||||||
2004 | 2003 | ||||||
(Unaudited) | |||||||
Current assets | |||||||
Cash and cash equivalents | $ | 99 | $ | 32 | |||
Accounts receivable | 90 | 64 | |||||
Inventory | 16 | 14 | |||||
Prepaid expenses and other | 11 | 25 | |||||
216 | 135 | ||||||
Investments in partnerships andcorporations (note 6) | 92 | 53 | |||||
Investment in Legacy Hotels Real Estate Investment Trust (note 4) | 70 | 106 | |||||
Non-hotel real estate | 100 | 95 | |||||
Property and equipment (note 3) | 1,436 | 1,656 | |||||
Goodwill | 164 | 132 | |||||
Intangible assets (note 6) | 243 | 217 | |||||
Other assets and deferred charges (note 6) | 82 | 109 | |||||
$ | 2,403 | $ | 2,503 | ||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||
Current liabilities | |||||||
Accounts payable and accrued liabilities | $ | 124 | $ | 121 | |||
Taxes Payable | 35 | 22 | |||||
Dividends payable | 5 | 3 | |||||
Current portion of long-term debt (note 7) | 4 | 118 | |||||
168 | 264 | ||||||
Long-term debt (notes 3 and 5) | 398 | 540 | |||||
Other liabilities | 96 | 91 | |||||
Future income taxes | 91 | 62 | |||||
753 | 957 | ||||||
Shareholders' Equity (note 8) | 1,650 | 1,546 | |||||
$ | 2,403 | $ | 2,503 |
Fairmont Hotels & Resorts Inc. |
Three months ended December 31 Year ended December 31 2004 2003 2004 2003 (Unaudited) (Unaudited) (Unaudited) Revenues Hotel ownership operations $ 138 $ 122 $ 654 $ 585 Management operations 13 10 46 38 Real estate activities 5 5 31 36 156 137 731 659 Other revenues from managed and franchised properties 12 9 40 33 168 146 771 692 Expenses Hotel ownership operations 111 104 475 449 Management operations 6 5 19 16 Real estate activities 7 8 25 26 General and administrative 9 4 30 17 133 121 549 508 Other expenses from managed and franchised properties 12 11 41 35 145 132 590 543 Loss from equity investments and other (2 ) (4 ) - (7 ) Operating income before undernoted items 21 10 181 142 Amortization 20 17 74 67 Other expenses, net - 2 - 2 Interest expense, net 7 11 33 34 (Gain) loss on sales of investments and hotel assets (notes 3 and 4) 1 - (144 ) - Income (loss) before income tax expense (7 ) (20 ) 218 39 Income tax expense (recovery) Current 4 4 54 12 Future (7 ) (10 ) 8 (24 ) (3 ) (6 ) 62 (12 ) Net income (loss) $ (4 ) $ (14 ) $ 156 $ 51 Weighted average number of common shares outstanding (in millions) (note 8) Basic 77 79 78 79 Diluted 78 79 79 80 Basic earnings (loss) per common share $ (0.06 ) $ (0.17 ) $ 1.99 $ 0.64 Diluted earnings (loss) per common share $ (0.06 ) $ (0.17 ) $ 1.97 $ 0.63
Fairmont Hotels & Resorts Inc. |
Three months ended December 31 | Year ended December 31 | ||||||||||||
2004 | 2003 | 2004 | 2003 | ||||||||||
Cash provided by (used in) | (Unaudited) | (Unaudited) | (Unaudited) | ||||||||||
Operating activities | |||||||||||||
Net Income (loss) | $ | (4 | ) | $ | (14 | ) | $ | 156 | $ | 51 | |||
Items not affecting cash | |||||||||||||
Amortization of property and equipment | 19 | 16 | 71 | 64 | |||||||||
Amortization of intangible assets | 1 | 1 | 3 | 3 | |||||||||
Loss from equity investments and other | 2 | 4 | - | 7 | |||||||||
Future income taxes | (7 | ) | (10 | ) | 8 | (24 | ) | ||||||
Unrealized foreign exchange gain | (17 | ) | - | (20 | ) | - | |||||||
(Gain) loss on sales of investments and hotel assets | 1 | - | (144 | ) | - | ||||||||
Other | 1 | (1 | ) | 9 | (12 | ) | |||||||
Distributions from investments | 3 | 2 | 7 | 7 | |||||||||
Changes in non-hotel real estate | 2 | 6 | 2 | 13 | |||||||||
Changes in non-cash working capital items (note 9) | (34 | ) | 19 | (18 | ) | - | |||||||
(33 | ) | 23 | 74 | 109 | |||||||||
Investing activities | |||||||||||||
Additions to property and equipment | (19 | ) | (32 | ) | (77 | ) | (87 | ) | |||||
Acquisitions, net of cash acquired | - | - | - | 6 | |||||||||
Investments in partnerships and corporations | (30 | ) | (1 | ) | (35 | ) | (2 | ) | |||||
Sales of investments and hotel assets | (1 | ) | - | 443 | - | ||||||||
Collection of loans receivable | 15 | 7 | 24 | 7 | |||||||||
Issuance of loans receivable | - | (3 | ) | (7 | ) | (31 | ) | ||||||
Investments in intangible assets | (3 | ) | - | (3 | ) | - | |||||||
(38 | ) | (29 | ) | 345 | (107 | ) | |||||||
Financing activities | |||||||||||||
Issuance of long-term debt | 33 | 1 | 116 | 163 | |||||||||
Repayment of long-term debt | (1 | ) | (273 | ) | (381 | ) | (424 | ) | |||||
Net proceeds from issuance of convertible notes | - | 263 | - | 263 | |||||||||
Proceeds from exercise of stock options | 2 | 1 | 3 | 1 | |||||||||
Repurchase of common shares | (33 | ) | - | (85 | ) | (17 | ) | ||||||
Dividends paid | - | - | (6 | ) | (5 | ) | |||||||
1 | (8 | ) | (353 | ) | (19 | ) | |||||||
Effect of exchange rate changes on cash | 1 | (3 | ) | 1 | - | ||||||||
Increase (decrease) in cash | (69 | ) | (17 | ) | 67 | (17 | ) | ||||||
Cash and cash equivalents - beginning of period | 168 | 49 | 32 | 49 | |||||||||
Cash and cash equivalents - end of period | $ | 99 | $ | 32 | $ | 99 | $ | 32 |
Fairmont Hotels & Resorts Inc. |
Three months ended December 31 | Year ended December 31 | ||||||||||||
2004 | 2003 | 2004 | 2003 | ||||||||||
(Unaudited) | (Unaudited) | (Unaudited) | |||||||||||
Balance - Beginning of period | $ | 215 | $ | 95 | $ | 78 | $ | 39 | |||||
Net income (loss) | (4 | ) | (14 | ) | 156 | 51 | |||||||
211 | 81 | 234 | 90 | ||||||||||
Repurchase of common shares (note 8) | (17 | ) | - | (37 | ) | (6 | ) | ||||||
Dividends | (5 | ) | (3 | ) | (8 | ) | (6 | ) | |||||
Balance - End of period | $ | 189 | $ | 78 | $ | 189 | $ | 78 |
Fairmont Hotels & Resorts Inc. |
1. | Fairmont Hotels & Resorts Inc. (“FHR”or the “Company”) has operated and owned hotels and resorts for over 116 years and currently manages properties principally under the Fairmont and Delta brands. At December 31, 2004, FHR managed or franchised 83 luxury and first-class hotels. FHR owns Fairmont Hotels Inc. (“Fairmont”), which at December 31, 2004, managed 45 properties in major city centers and key resort destinations throughout Canada, the United States, Mexico, Bermuda, Barbados, Europe and the United Arab Emirates. Delta Hotels Limited (“Delta”), a wholly owned subsidiary of FHR, managed or franchised 37 Canadian hotels and resorts at December 31, 2004. |
2. | These interim consolidated financial statements do not include all disclosures as required by Canadian generally accepted accounting principles (“GAAP”) for annual consolidated financial statements and should be read in conjunction with the audited consolidated financial statements for the year ended December 31, 2003 presented in the annual report. The accounting policies used in the preparation of these interim consolidated financial statements are consistent with the accounting policies used in the December 31, 2003 audited consolidated financial statements, except as discussed below. |
3. | On July 15, 2004, FHR finalized the sale of The Fairmont Kea Lani Maui for cash proceeds of $355. The mortgage of $120 on this property was repaid. FHR recognized a gain on the sale of approximately $68, net of income taxes of $41. The resort will be managed by Fairmont under a long-term management contract. |
4. | On September 13, 2004, FHR sold 12,000,000 units of Legacy for approximately $63 in cash and recognized a gain of $28. The sale decreases FHR's investment in Legacy to 23.7% from approximately 35%. |
5. | In March 2004, FHR entered into a new $400 unsecured credit facility due March 2007. The interest rate is floating and is calculated based on the borrower's choice of prime rate, bankers acceptance or LIBOR plus a spread. |
6. | In April 2004, FHR finalized an agreement to invest $16 for a 14.5% interest in The Fairmont Dubai. This investment is accounted for using the equity method due to significant influence obtained through various contractual arrangements. Upon finalization of this agreement, $23 was moved from “Other assets and deferred charges”, $16 to “Investments in partnerships and corporations” and $7 to “Intangible assets”. The resort is managed by Fairmont under a long-term management contract. |
7. | In August 2004, FHR purchased the remaining 16.5% of outstanding shares of Fairmont from Maritz, Wolff & Co. for approximately $70 in cash. FHR now owns 100% of Fairmont. The company had already been consolidating 100% of Fairmont, by previously having recorded an obligation of $69 representing the minimum amount a minority shareholder was entitled to receive under a put option. During the third quarter, FHR increased its previously reported goodwill and future income tax balances by $17. As a result of this transaction, current portion of long-term debt decreased by $69. |
Fairmont Hotels & Resorts Inc. |
8. | Shareholders' equity |
December 31, | December 31, | ||||||
2004 | 2003 | ||||||
Common shares | $ | 1,164 | $ | 1,202 | |||
Other equity | 19 | 19 | |||||
Treasury stock | (6 | ) | - | ||||
Contributed surplus | 142 | 142 | |||||
Foreign currency translation adjustments | 142 | 105 | |||||
Retained earnings | 189 | 78 | |||||
$ | 1,650 | $ | 1,546 |
Three months ended December 31 | Year ended December 31 | ||||||||||||
2004 | 2003 | 2004 | 2003 | ||||||||||
(in millions) | (in millions) | ||||||||||||
Weighted-average number of common shares outstanding - basic | 77 | 79 | 78 | 79 | |||||||||
Stock options | 1 | - | 1 | 1 | |||||||||
Weighted-average number of common shares outstanding - diluted | 78 | 79 | 79 | 80 |
Three months ended December 31 | Year ended December 31 | ||||||||||||
2004 | 2003 | 2004 | 2003 | ||||||||||
Reported net income | $ | (4 | ) | $ | (14 | ) | $ | 156 | $ | 51 | |||
Net income assuming fair value method used | $ | (4 | ) | $ | (14 | ) | $ | 155 | $ | 50 | |||
Basic earnings per share | $ | (0.06 | ) | $ | (0.17 | ) | $ | 1.98 | $ | 0.64 | |||
Diluted earnings per share | $ | (0.06 | ) | $ | (0.17 | ) | $ | 1.96 | $ | 0.63 |
9. | Changes in non-cash working capital: |
Three months ended December 31 | Year ended December 31 | ||||||||||||
2004 | 2003 | 2004 | 2003 | ||||||||||
Decrease (increase) in current assets | |||||||||||||
Accounts receivable | $ | 8 | $ | 3 | $ | (23 | ) | $ | 4 | ||||
Inventory | - | - | (1 | ) | - | ||||||||
Prepaid expenses and other | 5 | 5 | 4 | 4 | |||||||||
Increase (decrease) in current liabilities | |||||||||||||
Accounts payable and accrued liabilities | (1 | ) | 8 | (1 | ) | (9 | ) | ||||||
Taxes payable | (46 | ) | 3 | 3 | 1 | ||||||||
$ | (34 | ) | $ | 19 | $ | (18 | ) | $ | - |
Fairmont Hotels & Resorts Inc. |
10. | Segmented Information |
Three months ended December 31, 2004 | |||||||||||||||||||||||||
Ownership | Management | ||||||||||||||||||||||||
Hotel Ownership | Legacy | Real estate activities | Fairmont | Delta | Corporate general and administrative | Inter-segment elimination (a) | Total | ||||||||||||||||||
Operating revenues | $ | 138 | $ | - | $ | 5 | $ | 14 | $ | 3 | $ | - | $ | (4 | ) | $ | 156 | ||||||||
Other revenues from managed and franchised properties | - | - | - | 9 | 3 | - | - | 12 | |||||||||||||||||
168 | |||||||||||||||||||||||||
Income (loss) from equity investments and other | - | (2 | ) | - | - | - | - | - | (2 | ) | |||||||||||||||
EBITDA (b) | 23 | (2 | ) | (2 | ) | 9 | 2 | (9 | ) | - | 21 | ||||||||||||||
Total assets (c) | 1,604 | 70 | 103 | 920 | 79 | - | (373 | ) | 2,403 | ||||||||||||||||
Capital expenditures | 18 | - | - | 1 | - | - | 19 |
Three months ended December 31, 2003 | |||||||||||||||||||||||||
Ownership | Management | ||||||||||||||||||||||||
Hotel Ownership | Legacy | Real estate activities | Fairmont | Delta | Corporate general and administrative | Inter-segment elimination (a) | Total | ||||||||||||||||||
Operating revenues | $ | 122 | $ | - | $ | 5 | $ | 11 | $ | 3 | $ | - | $ | (4 | ) | $ | 137 | ||||||||
Other revenues from managed and franchised properties | - | - | - | 7 | 2 | - | - | 9 | |||||||||||||||||
146 | |||||||||||||||||||||||||
Income (loss) from equity investments and other | - | (4 | ) | - | - | - | - | - | (4 | ) | |||||||||||||||
EBITDA (b) | 14 | (4 | ) | (3 | ) | 7 | 2 | (4 | ) | (2 | ) | 10 | |||||||||||||
Total assets (c) | 1,916 | 106 | 102 | 351 | 76 | - | (48 | ) | 2,503 | ||||||||||||||||
Capital expenditures | 30 | - | - | 2 | - | - | - | 32 |
Year ended December 31, 2004 | |||||||||||||||||||||||||
Ownership | Management | ||||||||||||||||||||||||
Hotel Ownership | Legacy | Real estate activities | Fairmont | Delta | Corporate general and administrative | Inter-segment elimination (a) | Total | ||||||||||||||||||
Operating revenues | $ | 654 | $ | - | $ | 31 | $ | 54 | $ | 13 | $ | - | $ | (21 | ) | $ | 731 | ||||||||
Other revenues from managed and franchised properties | - | - | - | 30 | 10 | - | - | 40 | |||||||||||||||||
771 | |||||||||||||||||||||||||
Income (loss) from equity investments and other | 2 | (2 | ) | - | - | - | - | - | - | ||||||||||||||||
EBITDA (b) | 160 | (2 | ) | 6 | 40 | 8 | (30 | ) | (1 | ) | 181 | ||||||||||||||
Total assets (c) | 1,604 | 70 | 103 | 920 | 79 | - | (373 | ) | 2,403 | ||||||||||||||||
Capital expenditures | 73 | - | - | 4 | - | - | - | 77 |
Fairmont Hotels & Resorts Inc. |
10. | Segmented Information (continued) |
Year ended December 31, 2003 | |||||||||||||||||||||||||
Ownership | Management | ||||||||||||||||||||||||
Hotel Ownership | Legacy | Real estate activities | Fairmont | Delta | Corporate general and administrative | Inter-segment elimination (a) | Total | ||||||||||||||||||
Operating revenues | $ | 585 | $ | - | $ | 36 | $ | 44 | $ | 12 | $ | - | $ | (18 | ) | $ | 659 | ||||||||
Other revenues from managed and franchised properties | - | - | - | 25 | 8 | - | - | 33 | |||||||||||||||||
692 | |||||||||||||||||||||||||
Income (loss) from equity investments and other | 2 | (9 | ) | - | - | - | - | - | (7 | ) | |||||||||||||||
EBITDA (b) | 120 | (9 | ) | 10 | 31 | 9 | (17 | ) | (2 | ) | 142 | ||||||||||||||
Total assets (c) | 1,916 | 106 | 102 | 351 | 76 | - | (48 | ) | 2,503 | ||||||||||||||||
Capital expenditures | 84 | - | - | 3 | - | - | - | 87 |
Three months ended December 31 | Twelve months ended December 31 | ||||||||||||
2004 | 2003 | 2004 | 2003 | ||||||||||
EBTIDA | $ | 21 | $ | 10 | $ | 181 | $ | 142 | |||||
Amortization | 20 | 17 | 74 | 67 | |||||||||
Interest expense, net | 7 | 11 | 33 | 34 | |||||||||
(Gain) loss on sales of investments and hotel assets | 1 | - | (144 | ) | - | ||||||||
Other (income) expenses, net | - | 2 | - | 2 | |||||||||
Income tax expense (recovery) | (3 | ) | (6 | ) | 62 | (12 | ) | ||||||
Net income (loss) | $ | (4 | ) | $ | (14 | ) | $ | 156 | $ | 51 |
11. | The Company's hotel ownership revenues are as follows: |
Three months ended December 31 | Twelve months ended December 31 | ||||||||||||
2004 | 2003 | 2004 | 2003 | ||||||||||
Rooms revenue | $ | 69 | $ | 66 | $ | 356 | $ | 324 | |||||
Food and beverage revenue | 51 | 40 | 215 | 183 | |||||||||
Other | 18 | 16 | 83 | 78 | |||||||||
$ | 138 | $ | 122 | $ | 654 | $ | 585 |
12. | As required under the terms and conditions of the 3.75% convertible senior notes due 2023, the debt and the common shares issuable upon conversion of the shares were registered under a Form F-10 Registration Statement with the United States Securities and Exchange Commission on April 6, 2004. |
13. | At December 31, 2004, FHR has a payable to Legacy of $4 in connection with various management contracts, and reciprocal loan agreements with Legacy for $87. |
A subsidiary of FHR had a 25% participation in the first mortgage on The Fairmont Olympic Hotel, Seattle amounting to approximately $11 that was fully paid in the fourth quarter. |
14. | FHR recorded pension and other post employment benefit expenses as follows: |
Three months ended December 31 | Year ended December 31 | ||||||||||||
2004 | 2003 | 2004 | 2003 | ||||||||||
(in millions) | (in millions) | ||||||||||||
Pension | $ | (1 | ) | $ | 3 | $ | - | $ | 5 | ||||
Other post-employment benefits | $ | - | $ | 1 | $ | 1 | $ | 1 | |||||
$ | (1 | ) | $ | 4 | $ | 1 | $ | 6 |
15. | Certain of the prior period figures have been reclassified to conform with the presentation adopted for 2004. |