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 SEPTEMBER 30, 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) 525-8162
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.
Yes X 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 September 30, 2000
______ _______________________________
Common Stock - $.50 par value 1,583,563 shares
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PART I: FINANCIAL INFORMATION
ITEM 1: FINANCIAL STATEMENTS
UPTOWNER INNS, INC. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEET
AT SEPTEMBER 30, 2000 and JUNE 30, 2000
ASSETS
September 30, June 30,
2000 2000
(Unaudited) (a)
Current Assets:
Cash $ 257,709 $ 348,064
Accounts and notes receivable 175,677 107,870
Inventories 3,253 11,966
Prepaid expenses 44,945 65,093
Total current assets 481,584 532,993
Property, Plant and Equipment:
Land 1,480,612 1,480,612
Building and improvements 10,570,796 10,554,474
Furniture and equipment 2,770,106 2,729,398
Less accumulated
depreciation
and amortization 4,512,646 4,407,744
Property, plant and
equipment - net 10,308,868 10,356,740
Other Assets:
Deposits and other 165,791 169,407
Total Assets $ 10,956,243 $ 11,059,140
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UPTOWNER INNS, INC. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEET
AT SEPTEMBER 30, 2000 and JUNE 30, 2000
LIABILITIES AND STOCKHOLDERS' EQUITY
September 30, June 30,
2000 2000
(Unaudited) (a)
Current Liabilities:
Accounts payable $ 228,676 $ 358,242
Accrued liabilities 175,218 175,045
Taxes other than Federal
income taxes 456,953 437,520
Current portion of long-term
debt 1,109,220 1,109,220
Total current liabilities 1,970,067 2,080,027
Long-Term Liabilities:
Notes and mortgages payable 6,779,365 6,876,470
Total liabilities 8,749,432 8,956,497
Stockholders' Equity:
Common stock - par value
$.50 per share; authorized
5,000,000 shares; issued
1,583,563 shares 791,782 791,782
Additional paid-in capital 1,032,290 1,032,290
Retained earnings 382,739 278,571
Total stockholders' equity 2,206,811 2,102,643
Total Liabilities and
Stockholders' Equity $10,956,243 $11,059,140
(a) Financial information as of June 30, 2000 has been derived from the
audited, consolidated financial statements of the registrant.
The accompanying notes to the consolidated financial statements
are an integral part of these statements.
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UPTOWNER INNS, INC. AND SUBSIDIARY
CONSOLIDATED INCOME STATEMENT (UNAUDITED)
For the three months ended September 30, 2000 and 1999
2000 1999
Revenues:
Rooms $ 1,002,953 $ 915,160
Food and beverage 69,656 83,139
Telephone 15,484 13,101
Rents 54,403 58,559
Other 5,379 21,000
Total revenues 1,147,875 1,090,959
Costs and Expenses:
Operating Departments:
Cost of sales 60,958 46,309
Salaries and wages 258,413 224,203
Other 61,346 97,499
General and Administrative 85,029 67,323
Advertising 68,733 27,851
Utilities 67,364 59,643
Repairs and Maintenance 30,065 46,772
Interest 186,014 182,803
Taxes and licenses 104,864 84,139
Insurance 16,077 24,970
Depreciation and Amortization 104,903 107,779
Total costs and expenses 1,043,766 969,291
Operating income 104,109 121,668
Other Income:
Interest income 59 1,721
Total other income 59 1,721
Net Income before Income
Taxes 104,168 123,389
Income Taxes 0 0
Net Income $ 104,168 $ 123,389
Earnings per Share $ .07 $ .08
The accompanying notes to the consolidated financial statements
are an integral part of these statements.
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UPTOWNER INNS, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENT OF CASH FLOWS
(UNAUDITED)
For the three months ended September 30, 2000 and 1999
2000 1999
<s> <c> <c>
Cash Flows From Operating Activities:
Net income $ 104,168 $ 123,389
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization 104,903 107,779
(Increase) decrease in deposits 3,616 (4,284)
(Increase) decrease in current assets:
Accounts receivable (67,808) 2,307
Inventories 8,713 (774)
Prepaid expenses 20,148 20,702
Increase (decrease) in current
liabilities:
Accounts payable (129,566) 30,315
Accrued liabilities 173 (9,750)
Taxes other than Federal income tax 19,433 (56,042)
Total adjustments (40,388) 90,253
Net Cash Provided By Operating Activities $ 63,780 $ 213,642
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UPTOWNER INNS, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENT OF CASH FLOWS
(UNAUDITED)
For the three months ended September 30, 2000 and 1999
2000 1999
<s> <c> <c>
Cash Flows From Investing Activities:
Capital Expenditures $ (57,030) $ (87,320)
Net cash used in investing activities (57,030) (87,320)
Cash Flows From Financing Activities:
Loan proceeds 0 8,673
Payment on notes and mortgages (97,105) (89,988)
Net cash used in
financing activities (97,105) (81,315)
Net Increase (Decrease) in Cash
and Cash Equivalents (90,355) 45,007
Cash and Cash Equivalents at Beginning of Year 348,064 322,663
Cash and Cash Equivalents at End of Period $ 257,709 $ 367,670
Supplemental Disclosures of Cash Flow Information:
Cash Paid During The Period For:
Interest $ 184,819 $ 181,608
The accompanying notes to the consolidated financial statements
are an integral part of these statements.
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UPTOWNER INNS, AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
September 30, 2000
1. BASIS OF PRESENTATION
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. The results of operations for interim periods are not
necessarily indicative of the results that may be expected for a full
year or any other interim period. 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, 2000.
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UPTOWNER INNS, AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
September 30, 2000
2. CONTINGENCY
A $10,000,000. suit in which the Uptowner Inns, Inc. was a defendant was
previously filed by an individual who was severely injured in an auto
accident by a patron of the lounge.
The court has issued a summary judgment in this suit and accordingly this
suit has been dismissed.
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UPTOWNER INNS, INC. AND SUBSIDIARY
ITEM 2: MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
FORWARD-LOOKING STATEMENTS
Certain matters disclosed herein may be deemed to be forward-looking
statements that involve risks and uncertainties, including the facilities
utilization, costs associated with maintaining the operations, liquidity
issues, and other risks. Actual strategies and results in future time
periods may differ materially from those currently expected. Such
forward-looking statements represent management's judgment as of the
current date. The Company disclaims, however, any intent of obligation
to update such forward-looking statements.
RESULTS OF OPERATION
Due to the Holiday Inn Motel and Suites becoming an established
property within the Huntington market, the room revenues increased 9.6%.
The 16.2% decrease in food and beverage is attributed to the elimination
of the Uptowner Inn restaurant facility in late August of 2000.
Expenses are up 7.7% overall due to the increased occupancy. Some
additions in personnel have increased the payroll costs. The general and
administrative increase of 26.3% is primarily the result of
additional employee bonuses based on net income. Advertising has
increased 146.8% due to increased marketing efforts associated with the
Holiday Inn Hotel and Suites.
LIQUIDITY
The liquidity, as measured by current assets divided by current
liabilities, has slightly decreased from .256 at June 30, 2000 to
.244 at September 30, 2000. This decline is a result of continued under-
utilization of the Uptowner Inn facility coupled with the costs necessary
to maintain the operation. Management is currently evaluating
alternatives for the Uptowner Inn facility, and expects to have a plan in
place by the first quarter of the fiscal year beginning in 2001.
CAPITAL RESOURCES
The registrant has no plans at this time for any material commitments
for capital expenditures.
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UPTOWNER INNS, INC. AND SUBSIDIARY
PART II: OTHER INFORMATION
Item 1. Legal Proceedings
- Refer to Note 2 of the Financial Statements included in
Part I. This suit has been dismissed.
Item 2. Changes in Securities and Use of Proceeds - Not Applicable
Item 3. Defaults by the Company on its Senior Securities - Not Applicable
Item 4. Submission of Matters to a Vote of Security Holders
- Not Applicable
Item 5. Other Information - Not Applicable
Item 6. Exhibits and Reports on Form 8-K
a. Exhibits
None
b. The Company was not required to file Form 8-K for the quarter
ended September 30, 2000.
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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/ Carl Midkiff,
CEO and Secretary
October 2, 2001
By /s/ David Robinson,
Treasurer
October 2, 2001
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