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 DECEMBER 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) 525-8162
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 DECEMBER 31, 2000 and JUNE 30, 2000
ASSETS
December 31, June 30,
2000 2000
(Unaudited) (a)
Current Assets:
Cash $ 271,037 $ 348,064
Accounts and notes receivable 109,443 107,870
Inventories 3,246 11,966
Prepaid expenses 55,873 65,093
Total current assets 439,599 532,993
Property, Plant and Equipment:
Land 1,480,612 1,480,612
Building and improvements 10,575,642 10,554,474
Furniture and equipment 2,784,013 2,729,398
Less accumulated
depreciation
and amortization 4,617,549 4,407,744
Property, plant and
equipment - net 10,222,718 10,356,740
Other Assets:
Deposits and other 162,174 169,407
Total Assets $ 10,824,491 $ 11,059,140
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UPTOWNER INNS, INC. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEET
AT DECEMBER 31, 2000 and JUNE 30, 2000
LIABILITIES AND STOCKHOLDERS' EQUITY
December 31, June 30,
2000 2000
(Unaudited) (a)
Current Liabilities:
Accounts payable $ 366,645 $ 358,242
Accrued liabilities 184,317 175,045
Taxes other than Federal
income taxes 304,397 437,520
Current portion of long-term
debt 1,109,220 1,109,220
Total current liabilities 1,964,579 2,080,027
Long-Term Liabilities:
Notes and mortgages payable 6,702,142 6,876,470
Total liabilities 8,666,721 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 333,698 278,571
Total stockholders' equity 2,157,770 2,102,643
Total Liabilities and
Stockholders' Equity $10,824,491 $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 periods of three and six months ended December 31, 2000 and 1999
Three Months Ended Six Months Ended
12/31/00 12/31/99 12/31/00 12/31/99
Revenues:
Rooms $ 849,760 $ 815,837 $ 1,852,713 $ 1,730,997
Food and beverage 37,962 93,487 107,618 176,626
Telephone 12,385 11,630 27,869 24,731
Rents 50,509 45,958 104,912 104,517
Other 6,256 9,830 11,635 30,830
Total revenues 956,872 976,742 2,104,747 2,067,701
Costs and Expenses:
Operating Departments:
Cost of sales 44,151 57,970 105,109 104,279
Salaries and wages 232,129 288,934 490,542 513,137
Other 73,638 103,288 134,984 200,787
General and Administrative 94,978 101,522 180,007 168,845
Advertising 76,603 23,711 145,336 51,562
Utilities 54,910 48,670 122,274 108,313
Repairs and Maintenance 24,274 45,370 54,339 92,142
Interest 196,651 181,071 382,665 363,874
Taxes and licenses 93,018 90,034 197,882 174,173
Insurance 10,718 28,202 26,795 53,172
Depreciation and Amortization 104,903 106,320 209,806 214,099
Total costs and expenses 1,005,973 1,075,092 2,049,739 2,044,383
Operating income (loss) (49,101) (98,350) 55,008 23,318
Other Income:
Interest income 60 1,712 119 3,433
Total other income 60 1,712 119 3,433
Net Income (Loss) before Income
Taxes (49,041) (96,638) 55,127 26,751
Income Taxes 0 0 0 0
Net Income (Loss) $ (49,041) $ (96,638) $ 55,127 $ 26,751
Earnings (Loss) per Share $ (0.03) $ (.06) $ .03 $ .02
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 six months ended December 31, 2000 and 1999
2000 1999
<s> <c> <c>
Cash Flows From Operating Activities:
Net income $ 55,127 $ 26,751
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization 209,805 214,099
(Increase) decrease in deposits 7,233 0
(Increase) decrease in current assets:
Accounts receivable (1,573) 6,510
Inventories 8,720 (170)
Prepaid expenses 9,220 9,378
Increase (decrease) in current
liabilities:
Accounts payable 8,403 68,144
Accrued liabilities 9,272 (3,177)
Taxes other than Federal income tax (133,123) (5,069)
Total adjustments 117,957 289,715
Net Cash Provided By Operating Activities $ 173,084 $ 316,466
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UPTOWNER INNS, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENT OF CASH FLOWS
(UNAUDITED)
For the six months ended December 31, 2000 and 1999
2000 1999
<s> <c> <c>
Cash Flows From Investing Activities:
Capital Expenditures $ (75,783) $ (159,147)
Net cash used in investing activities (75,783) (159,147)
Cash Flows From Financing Activities:
Loan proceeds 0 116,400
Payment on notes and mortgages (174,328) (170,449)
Net cash used in
financing activities (174,328) (54,049)
Net Increase (Decrease) in Cash
and Cash Equivalents (77,027) 103,270
Cash and Cash Equivalents at Beginning of Year 348,064 322,663
Cash and Cash Equivalents at End of Period $ 271,037 $ 425,933
Supplemental Disclosures of Cash Flow Information:
Cash Paid During The Period For:
Interest $ 380,274 $ 361,484
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
December 31, 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
THREE MONTHS ENDED DECEMBER 31, 2000 AND 1999
Due to the Holiday Inn Motel and Suites becoming an established
property within the Huntington market, the room revenues increased 4.2%
in the three months ended December 31, 2000 relative to the comparable
period in 1999. The 59.4% decrease in food and beverage revenues in the
quarter ended December 31, 2000 relative to the comparable period in 1999,
is attributed to the elimination of the Uptowner Inn restaurant facility
in late August of 2000.
Costs and expenses decreased 6.4% from 1999. Salaries decreased
19.7% due to the down-sizing of the Rooms and Housekeeping departments and
also due to the closing of the Uptowner restaurant in late August of 2000.
Advertising has increased 223.1% due to increased marketing efforts
associated with the Holiday Inn Hotel and Suites. Although cost of sales
have decreased 24% from 1999, as a percentage of sales, cost of sales have
increased nearly 30% in the three months ended December 31, 2000 relative
to the comparable period in 1999. This increase in percentage as compared
to sales is due to the write off of food items during the closing of the
Uptowner restaurant facility. In addition this increase is attributed to
the Travelodge property and the Holiday Inn property providing a
complimentary continental breakfast to all their guests.
SIX MONTHS ENDED DECEMBER 31, 2000 AND 1999
Room Revenues have increased by 7.03% in the six months ended
December 31, 2000 relative to the comparable period in 1999. Food and
Beverage revenues have decreased by 39.1% in the six months ended
December 31, 2000 relative to the comparable period in 1999. These
differences, as well as the variances in expenses, are due to the
explanations above for the three month period ending December 31, 2000.
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LIQUIDITY
The liquidity, as measured by current assets divided by current
liabilities, has slightly decreased from .256 at June 30, 2000 to
.224 at December 31, 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 - Not Applicable
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 December 31, 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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