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, 1996 ________Commission File No. 0-1957
UPTOWNER INNS, INC.
Exact name of registrant as specified in its charter
West Virginia 55-0457171
State or other jusrisdiction 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, 1996_______
Common Stock-$.50 par value 1,583,563 Shares
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UPTOWNER INNS, INC., AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
DECEMBER 31, 1996 AND 1995
ASSETS
DECEMBER 31, JUNE 30,
1996 1995 1996
(Unaudited) (Unaudited)
CURRENT ASSETS:
Cash $ 241,411 $ 220,014 $ 463,998
Investments - 0 - 392,997 - 0 -
Accounts & Notes Rec. 21,208 76,464 54,656
Accts. Rec.--Shareholder - 0 - 451 - 0 -
Inventories 10,101 11,377 9,226
Prepaid Expenses 16,432 12,783 28,398
TOTAL CURRENT ASSETS 289,152 714,086 556,278
PROPERTY, PLANT & EQUIPMENT
Land 1,386,777 1,058,921 1,087,921
Building & Improvement 5,322,204 5,322,204 5,322,204
Construction in Progress 234,636 10,000 143,390
Furniture & Equipment 1,447,447 1,412,285 1,442,494
TOTAL 8,391,064 7,803,410 7,996,009
Less:
Accumulated Depreciation
and Amortization 3,714,968 3,504,196 3,610,706
TOTAL PROPERTY, PLANT
AND EQUIPMENT 4,676,096 4,299,214 4,385,303
OTHER ASSETS:
Deposits and Other 69,353 69,185 69,804
TOTAL OTHER ASSETS 69,353 69,185 69,804
TOTAL ASSETS 5,034,601 5,082,485 5,011,385
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UPTOWNER INNS, INC., AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
DECEMBER 31, 1996 AND 1995
LIABILITIES AND STOCKHOLDERS' EQUITY
DECEMBER 31, JUNE 30,
1996 1995 1996
(Unaudited) (Unaudited)
CURRENT LIABILITIES:
Accounts Payable $ 84,961 $ 26,536 $ 71,182
Accrued Liabilities 92,594 88,547 94,041
Taxes Other Than Federal
Income Taxes 146,457 94,038 107,742
Current Portion of
Long-Term Debt. 281,925 261,946 277,925
TOTAL CURRENT LIABILITIES 605,937 471,067 550,890
LONG-TERM LIABILITIES
Notes &
Mortgages Payable 2,202,322 2,420,969 2,322,279
TOTAL LONG-TERM LIABILITIES 2,202,322 2,420,969 2,322,279
TOTAL LIABILITIES 2,808,259 2,892,036 2,873,169
STOCKHOLDERS' 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 402,270 366,377 314,144
TOTAL STOCKHOLDERS'
EQUITY 2,226,342 2,190,449 2,138,216
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY 5,034,601 5,082,485 5,011,385
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UPTOWNER INNS, INC., AND SUBSIDIARIES
CONSOLIDATED INCOME STATEMENT (UNAUDITED)
FOR THE PERIODS ENDED DECEMBER 31, 1996 AND 1995
THREE MONTHS ENDED SIX MONTHS ENDED
12/31/96 12/31/95 12/31/96 12/31/95
REVENUES:
Rooms $ 314,294 $ 311,467 $ 709,862 $ 714,364
Food & Beverage 94,350 131,291 180,728 242,806
Telephone 8,655 11,511 16,663 20,078
Rents 59,021 60,985 116,047 115,013
Other 25,418 28,491 36,355 46,135
TOTAL REVENUE 501,738 543,745 1,059,655 1,138,396
COSTS AND EXPENSES:
Operating Departments
Cost of Sales 50,580 70,526 99,370 129,065
Salaries & Wages 130,956 117,124 248,770 231,157
Other 60,903 52,447 123,276 100,954
General & Admin. 32,237 25,958 59,301 61,234
Advertising 2,884 15,193 19,740 34,371
Utilites 23,399 29,985 56,645 65,257
Repair & Maint. 29,608 25,071 53,111 48,316
Interest 47,271 50,874 95,493 103,416
Taxes & Licenses 43,626 51,520 84,266 90,977
Insurance 13,683 4,025 27,295 17,158
Deprec. & Amort. 52,489 51,773 104,262 110,423
TOTAL COST
& EXPENSES 487,636 494,496 971,529 992,328
NET OPERATING INCOME (LOSS)
BEFORE TAXES 14,102 49,249 88,126 146,068
FEDERAL INCOME TAXES
AND PENALTIES
Provision for Taxes
on Income -0- -0- -0- 4,377
Deferred Federal
Income Taxes -0- -0- -0- -0-
TOTAL FEDERAL INCOME
TAXES -0- -0- -0- 4,377
TOTAL NET
INCOME (LOSS) 14,102 49,249 88,126 141,691
EARNINGS PER SHARE .01 .03 .06 .09
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, 1996
1996 1995
CASH FLOW FROM OPERATING ACTIVITIES:
Net Income (Accrual Basis; from
Statement of Income $ 88,126 $ 141,691
Add (Deduct) to Reconcile Net Income to
Net Cash Flow:
Accts. Receivables (Increase) Decrease 33,448 9,148
Inventories (Increase) Decrease (875) (674)
Prepaid Expenses Decrease (Increase) 11,966 5,927
Accounts Payable (Decrease) Increase 13,779 (6,056)
Accrued Liabilities (Decrease) Increase (1,447) (1,087)
Taxes Other Than Federal Income Tax
Increase (Decrease) 38,715 (64,198)
Depreciation Expense 104,262 110,423
NET CASH INFLOWS FROM OPERATIONS 287,974 195,174
CASH FLOW FROM INVESTING ACTIVITIES:
From Sale of Investments -0- 183,473
From Purchase of Operational Assets (394,604) (350,041)
NET CASH INFLOW (OUTFLOW) FROM INVESTING
ACTIVITIES (394,604) (166,568)
CASH FLOW FROM FINANCING ACTIVITIES:
Payment on Notes and Mortgages (115,957) (106,972)
NET CASH INFLOW (OUTFLOW) FROM FINANCING
ACTIVITIES (115,957) (106,972)
Net Increases (Decreases) in Cash Plus Cash
Equivalents for the Six Months (222,587) (78,366)
Cash Plus Cash Equivalents at July 1 463,998 298,380
Cash Plus Cash Equivalents at December 31 241,411 220,014
Cash Paid for Interest in the Six Months 93,103 101,026
Cash Paid for Income Taxes in The Six Months -0- 4,377
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UPTOWNER INNS, INC., AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 1996
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, 1996.
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UPTOWNER INNS, INC., AND SUBSIDIARIES
MANAGEMENTS DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
DECEMBER 31, 1996
Revenues in the current period decreased 6.9%. The major portion is
caused by the 25% decline in Food & Beverage sales, but significant percentage
declines occurred in Telephone Revenues (down 17%) and Other Revenues (down
21%).
Costs were decreased 2% due mainly to the decreasing Cost of Sales (down
23%), Utilities (down 13%), and Advertising (down 43%). Salaries and Wages
increased 7.6%, Other Expenses increased 22%, Repairs and Maintenance
increased 9.9%, Insurance increased 59%. Cost increases were due to the
current economic conditions and to the need to incur costs to maintain or
improve the operations of the company. Decreases were due to decreased
activities (Cost of Sales) coupled with management's efforts to reduce food
costs; decreased activity and weather conditions reduced utility consumption;
and other costs decreased marginally.
The liquidity has declined from 1.52 at December 31, 1995, to a current
level of .48. This is caused by the property acquisition and costs to begin
construction of a new hotel. Construction contracts are awarded, financing
has been obtained, and the project is scheduled for completion in February,
1998. Liquidity will continue to be a problem for the company for some time.
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UPTOWNER INNS, INC., AND SUBSIDIARIES
SIGNATURES
DECEMBER 31, 1996
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: January 30, 1997 By Violet Midkiff
Violet Midkiff
President
Date: January 30, 1997 By James R. Camp
James R. Camp
Treasurer
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