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 DECEMBER 31, 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 DECEMBER 31, 1999
Common Stock-$.50 par value 1,583,563 Shares
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UPTOWNER INNS, INC., AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
DECEMBER 31, 1999 AND 1998
ASSETS
DECEMBER 31, JUNE 30,
1999 1998 1999
(Unaudited) (Unaudited)
CURRENT ASSETS:
Cash $ 425,933 $ 271,028 $ 322,663
Accounts & Notes Rec. 163,408 159,614 169,918
Inventories 11,367 15,936 11,197
Prepaid Expenses 55,931 32,604 65,309
TOTAL CURRENT ASSETS 656,639 479,182 569,087
INVESTMENTS & FUNDS
Notes Receivable -0- 79,832 -0-
TOTAL INVESTMENTS & FUNDS -0- 79,832 -0-
PROPERTY, PLANT AND EQUIPMENT
Land 1,480,612 1,480,612 1,480,612
Building & Improvement 10,896,375 10,637,720 10,768,710
Furniture & Equipment 2,544,437 2,452,081 2,512,955
TOTAL 14,921,424 14,570,413 14,762,277
Less: Accumulated Depreciation
and Amortization 4,201,064 3,773,495 3,986,965
TOTAL PROPERTY, PLANT
AND EQUIPMENT 10,720,360 10,796,918 10,775,312
OTHER ASSETS:
Deposits and Other 119,952 130,074 117,896
TOTAL OTHER ASSETS 119,952 130,074 117,896
TOTAL ASSETS 11,496,951 11,486,006 11,462,295
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UPTOWNER INNS, INC., AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
DECEMBER 31, 1999 AND 1998
LIABILITIES AND STOCKHOLDERS' EQUITY
DECEMBER 31, JUNE 30,
1999 1998 1999
(Unaudited) (Unaudited)
RENT LIABILITIES:
Accounts Payable $ 659,984 $ 551,231 $ 591,840
Accrued Liabilities 176,428 114,757 179,605
Taxes Other Than Federal
Income Taxes 307,444 202,682 312,513
Notes Payable -0- 34,000 -0-
Current Portion Long-Term Debt 1,275,500 1,021,925 1,265,006
TOTAL CURRENT LIABILITIES 2,419,356 1,924,595 2,348,964
LONG-TERM LIABILITIES
Notes & Mortgages Payable 6,850,985 7,247,145 6,913,472
TOTAL LONG-TERM LIABILITIES 6,850,985 7,247,145 6,913,472
TOTAL LIABILITIES 9,270,341 9,171,740 9,262,436
STOCKHOLDER'S 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 402,538 490,194 375,787
TOTAL STOCKHOLDER'S
EQUITY 2,226,610 2,314,266 2,199,859
TOTAL LIABILITIES AND
STOCKHOLDER'S EQUITY 11,496,951 11,486,006 11,462,295
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UPTOWNER INNS, INC., AND SUBSIDIARIES
CONSOLIDATED INCOME STATEMENT (UNAUDITED)
FOR THE PERIODS ENDED DECEMBER 31, 1999 AND 1998
THREE MONTHS ENDED SIX MONTHS ENDED
12/31/99 12/31/98 12/31/99 12/31/98
REVENUES:
Rooms 815,837 782,377 1,730,997 1,173,972
Food & Beverage 93,487 104,306 176,626 179,676
Telephone 11,630 10,524 24,731 19,214
Rents 45,958 57,962 104,517 118,036
Other 9,830 14,711 30,830 40,467
TOTAL REVENUE 976,742 969,880 2,067,701 1,531,365
COSTS AND EXPENSES:
Cost of Sales 57,970 60,183 104,279 97,932
Salaries & Wages 288,934 238,531 513,137 427,461
Other 103,288 97,519 200,787 146,969
General & Administrative 101,522 34,901 168,845 69,661
Advertising 23,711 8,717 51,562 19,067
Utilities 48,670 44,177 108,313 84,028
Repair & Maintenance 45,370 20,869 92,142 41,223
Interest 181,071 202,359 363,874 316,281
Taxes & Licenses 90,034 63,200 174,173 113,496
Insurance 28,202 28,183 53,172 49,828
Deprec. & Amort. 106,320 92,832 214,099 151,245
TOTAL COST & EXPENSES 1,075,092 891,471 2,044,383 1,517,191
OPERATING INCOME (LOSS) (98,350) 78,409 23,318 14,174
OTHER INCOME:
Interest Income 1,712 783 3,433 1,333
Gain on Sale of Assets -0- 36,771 -0- 211,929
TOTAL OTHER INCOME 1,712 37,554 3,433 213,262
NET INCOME (LOSS)
BEFORE TAXES (96,638) 115,963 26,751 227,436
FEDERAL INCOME TAXES
Provision for Taxes
on Income -0- -0- -0- -0-
Deferred Federal
Income Taxes -0- -0- -0- -0-
TOTAL FEDERAL INCOME
TAXES -0- -0- -0- -0-
TOTAL NET INCOME (LOSS) (96,938) 115,963 26,751 227,436
EARNINGS PER SHARE (0.06) 0.07 0.02 0.14
DIVIDENDS PER SHARE -0- -0- -0- -0-
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UPTOWNER INNS, INC., AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED)
FOR THE SIX MONTHS ENDED DECEMBER 31, 1999
1999 1998
CASH FLOW FROM OPERATING ACTIVITIES:
Net Income (Accrual Basis; from
Statement of Income) $ 26,751 $ 227,436
Add (Deduct) to Reconcile Net Income to
Net Cash Flow:
Accounts Receivable (Increase) Decrease 6,510 (135,888)
Inventories (Increase) Decrease (170) (8,574)
Prepaid Expenses Decrease (Increase) 9,378 18,946
Accounts Payable (Decrease) Increase 68,144 33,644
Notes Payable (Decrease) Increase -0- 34,000
Accrued Liabilities (Decrease) Increase (3,177) (31,052)
Taxes Other Than Federal Income Tax
Increase (Decrease) (5,069) 2,283
Increase in Deposits -0- (787)
Depreciation Expense 214,099 151,245
Gain on Sale of Assets -0- (211,929)
NET CASH INFLOWS FROM OPERATIONS 316,466 79,324
CASH FLOW FROM INVESTING ACTIVITIES:
From Collection on Notes Receivable -0- 4,668
From Sale of Assets -0- 240,625
From Purchase of Operational Assets (159,147) (484,584)
NET CASH INFLOW (OUTFLOW) FROM INVESTING
ACTIVITIES (159,147) (239,291)
CASH FLOW FROM FINANCING ACTIVITIES:
Issuance of Long-Term Debt 116,400 476,556
Payment on Notes and Mortgages (170,449) (135,576)
NET CASH INFLOW (OUTFLOW) FROM FINANCING
ACTIVITIES 54,049 340,980
Net Increases (Decreases) in Cash Plus Cash
Equivalents for the Six Months 103,270 181,013
Cash Plus Cash Equivalents at July 1 322,663 90,015
Cash Plus Cash Equivalents at December 31 425,933 271,028
Cash Paid for Interest in the Six Months 361,484 334,848
Cash Paid for Income Taxes in The Six Months -0- -0-
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UPTOWNER INNS, INC., AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 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 SUBSIDIARIES
MANAGEMENTS DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
DECEMBER 31, 1999
Due to the Holiday Inn Hotel and Suites operating for all of the
current six months and only for slightly over four months in 1998,
the room revenues continue to show a significant increase (47%). Telephone
revenues are up 29% due to the full operation for 1999. The slight
decrease in food and beverage is caused by declining revenues in the
UpTowner Inn facility. Rents decreased due to the disposal of some
rental properties.
Expenses are up 35% overall due to the full operation of the new
facility. Some changes in personnel have increased the payroll costs
and the beginning of efforts to improve the older facility have caused
increases in repairs and maintenance. The general and administrative
increase of 142% is primarily the result of Holiday Inn fees for a full
period and on higher revenues.
The liquidity has slightly improved from .24 at June 30, 1999 to
.27 at December 31, 1999. At December 31, 1998 liquidity measured .25.
Liquidity has been a major issue for several years and will likely continue
as a problem area due to the under-utilization of the UpTowner facility
and the costs needed to maintain that operation. Debt restructure has
been completed and no significant improvement to liquidity has resulted.
The additional cash received will be used to make improvements to UpTowner
Inns to meet Travelodge requirements.
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UPTOWNER INNS, INC., AND SUBSIDIARIES
SIGNATURES
DECEMBER 31, 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: February 22, 2000 By /s/ Violet Midkiff
Violet Midkiff
President
Date: February 22, 2000 By /s/ James R. Camp
James R. Camp
Treasurer
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