SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20459
FORM 10-Q
QUARTERLY REPORT UNDER SECTION 13 OR 15 (d) OF
THE SECURITIES EXCHANGE ACT OF 1934
FOR QUARTER ENDED MARCH 31, 2000, COMMISSION FILE NUMBER 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 Offices) (Zip Code)
Registrant's Telephone Number, including area code (304) 525-7741
Indicate by check mark whether the 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 requirements 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 March 31, 2000
______ _______________________________
Common Stock - $.50 par value 1,583,563 shares
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UPTOWNER INNS, INC. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEET
March 31, 2000 and 1999
ASSETS
March 31, March 31, June 30,
2000 1999 1999
(Unaudited) (Unaudited)
Current Assets:
Cash $ 401,319 $ 295,070 $ 322,663
Accounts and notes rec. 87,449 84,564 169,918
Inventories 11,103 13,082 11,197
Prepaid expenses 149,783 28,008 65,309
Total current assets 649,654 420,724 569,087
Investments and Funds:
Notes receivable 82,031 78,394 0
Property, Plant and Equipment:
Land 1,480,612 1,480,612 1,480,612
Building and improvements 10,706,673 10,701,839 10,448,165
Furniture and equipment 2,796,158 2,459,536 2,512,955
Less accumulated
depreciation
and amortization 4,305,967 3,866,327 3,986,965
Property, plant and
equipment - net 10,677,476 10,775,660 10,454,767
Other Assets:
Deposits and other 39,449 133,750 117,896
Total Assets $ 11,448,610 $ 11,408,528 $ 11,141,750
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UPTOWNER INNS, INC. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEET
March 31, 2000 and 1999
LIABILITIES AND STOCKHOLDERS' EQUITY
March 31, March 31, June 30,
2000 1999 1999
(Unaudited) (Unaudited)
Current Liabilities:
Accounts payable $ 684,460 $ 603,707 $ 271,295
Accrued liabilities 169,601 102,702 179,605
Taxes other than Federal
income taxes 377,822 207,265 312,513
Current portion of long-term
debt 1,265,006 1,031,925 1,265,006
Total current liabilities 2,496,889 1,945,599 2,028,419
Long-Term Liabilities:
Notes and mortgages payable 6,783,752 7,161,606 6,913,472
Total liabilities 9,280,641 9,107,205 8,941,891
Stockholders' Equity:
Common stock - par value
$.50 per share; authorized
5,000,000 shares; issued
1,583,563 shares 791,782 791,782 791,782
Additional paid-in capital 1,032,290 1,032,290 1,032,290
Retained earnings 343,897 477,251 375,787
Total stockholders' equity 2,167,969 2,301,323 2,199,859
Total Liabilities and
Stockholders' Equity $11,448,610 $11,408,528 $11,141,750
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UPTOWNER INNS, INC. AND SUBSIDIARY
CONSOLIDATED INCOME STATEMENT (UNAUDITED)
For the Nine Periods Ended March 31, 2000
Three Months Ended Nine Months Ended
3/31/00 3/31/99 3/31/00 3/31/99
Revenues:
Rooms $ 764,007 $ 671,299 $ 2,495,004 $ 1,845,271
Food and beverage 88,442 77,287 281,446 256,963
Telephone 14,231 9,257 42,565 28,471
Other 5,905 7,369 24,353 47,836
Rents 57,157 60,654 161,674 178,690
Total revenues 929,742 825,866 3,005,042 2,357,231
Costs and Expenses:
Cost of sales 58,608 49,907 169,622 147,839
Salaries and wages 234,886 187,925 760,720 615,386
Other 59,520 71,732 223,560 218,701
General and Admin. 108,833 73,368 226,225 143,029
Advertising 49,619 22,951 181,093 42,018
Utilities 57,809 54,277 177,160 138,305
Repairs and Maint. 21,756 21,736 98,112 62,959
Interest 184,192 178,942 546,387 495,223
Taxes and licenses 101,912 64,082 300,668 177,578
Insurance 16,077 24,560 41,752 74,388
Depreciation and Amor 106,882 96,623 324,231 247,868
Total costs and exp. 1,000,094 846,103 3,049,530 2,363,294
Operating loss (70,352) (20,237) (44,488) (6,063)
Other Income:
Interest income 1,156 1,744 4,589 3,077
Gain on sale of assets 0 6,000 0 217,929
Total other income 1,156 7,744 4,589 221,006
Net Income (Loss) before
Taxes (69,196) (12,493) (39,899) 214,943
Income Taxes 0 0 0 0
Net Income (Loss) (69,196) (12,493) (39,899) 214,943
Earnings per Share (.04) (.01) (.03) .14
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UPTOWNER INNS, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENT OF CASH FLOWS
(UNAUDITED)
For the periods of nine months ended March 31, 2000 and 1999
2000 1999
Cash Flows From Operating Activities:
Net income (loss) $ (39,899) $ 214,943
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization 324,231 247,868
Gain on sale of assets 0 (217,929)
(Increase) decrease in deposits (3,742) (4,463)
(Increase) decrease in current assets:
Accounts receivable 438 (55,838)
Inventories 94 (5,720)
Prepaid expenses 5,715 23,542
Increase (decrease) in current
liabilities:
Accounts payable 92,620 86,120
Notes payable 0 (34,000)
Accrued liabilities (10,004) (43,107)
Taxes other than Federal income tax 65,309 6,866
Total adjustments 474,661 3,339
Net Cash Provided By Operating Activities $ 434,762 $ 218,282
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UPTOWNER INNS, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENT OF CASH FLOWS
(UNAUDITED)
For the periods of nine months ended March 31, 2000 and 1999
2000 1999
Cash Flows From Investing Activities:
Proceeds from sale of real estate $ 0 $ 246,625
Collection of note 0 6,106
Paid for operational assets and other (226,386) (564,949)
Net cash used in investing activities (226,386) (312,218)
Cash Flows From Financing Activities:
Loan proceeds 116,400 476,556
Payment on notes and mortgages (246,120) (177,115)
Net cash provided by (used in)
financing activities (129,720) 299,441
Net Increase in Cash and Cash Equivalents 78,656 205,505
Cash and Cash Equivalents at Beginning of Year 322,663 90,015
Cash and Cash Equivalents at End of Period 401,319 295,520
Supplemental Disclosures of Cash Flow Information:
Cash Paid During The Period For:
Interest 515,820 512,595
Income taxes
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UPTOWNER INNS, AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
March 31, 2000
The financial statements presented reflect Uptowner Inns, Inc. and its
consolidated subsidiary, Motel and Restaurant Supply.
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 SUBSIDIARY
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
March 31, 2000
Due to the Holiday Inn Motel and Suites operating for all of the
current nine months, the room revenues continue to show a significant
increase (35%). Telephone revenues are up 49.5% due to the full operation
for 2000. The 9.5% increase in food and beverage is attributed to the
restructuring of the Uptowner Inn facility. Rents continue to decrease
slightly due to the disposal of some rental properties.
Expenses are up 29% overall due to the full operation of the new
facility and the increased revenue. Some changes in personnel have
increased the payroll costs and the beginning of efforts to improve the
older facility has caused increases in repairs and maintenance. The
general and administrative increase of 58% is primarily the result of
higher revenues.
The liquidity has slightly improved from .24 at June 30, 1999 to .26
at March 31, 2000. At December 31, 1999, liquidity measured .27.
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. Management is
currently researching alternatives for the Uptowner facility, and hopes to
have a plan in place by the first quarter of 2001.
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SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) 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.
(Registrant) UPTOWNER INNS, INC.
By /s/ Violet Midkiff,
President
January 22, 2001
By /s/ James R. Camp, T
Treasurer
January 22, 2001
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