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_____MARCH 31, 1997___________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 _MARCH 31, 1997_________
Common Stock-$.50 par value 1,583,563 Shares
-1-
UPTOWNER INNS, INC., AND SUBSIDIARY
CONSOLIDATED BALANCE SHEET
MARCH 31, 1997 AND 1996
ASSETS
MARCH 31, JUNE 30 ,
1997 1996 1996
(Unaudited) (Unaudited)
CURRENT ASSETS:
Cash $ 96,878 $ 137,702 $ 463,998
Temporary Investments -0- 396,791 -0-
Accounts & Notes Rec. 60,988 75,400 54,656
Inventories 10,216 10,254 9,226
Prepaid Expenses 22,550 12,136 28,398
TOTAL CURRENT ASSETS 190,632 632,283 556,278
PROPERTY, PLANT AND
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 904,916 57,731 143,390
Furniture & Equipment 1,451,631 1,439,532 1,442,494
TOTAL 9,065,528 7,878,028 7,996,009
Less: Acc. Dep.
and Amortization 3,766,923 3,555,968 3,610,706
TOTAL PROPERTY, PLANT
AND EQUIPMENT 5,298,605 4,322,060 4,385,303
OTHER ASSETS:
Deposits and Other 70,149 69,768 69,804
TOTAL OTHER ASSETS 70,149 69,768 69,804
TOTAL ASSETS 5,559,386 5,024,111 5,011,385
-2-
UPTOWNER INNS, INC., AND SUBSIDIARY
CONSOLIDATED BALANCE SHEET
MARCH 31, 1997 AND 1996
LIABILITIES AND STOCKHOLDERS' EQUITY
MARCH 31, JUNE 30,
1997 1996 1996
(Unaudited) (Unaudited)
CURRENT LIABILITIES:
Accounts Payable $ 115,645 $ 42,073 $ 71,182
Accrued Liabilities 103,834 96,457 94,041
Taxes Other Than Federal
Income Taxes 165,191 7,868 107,742
Current Portion of
Long-Term Debt. 286,925 206,000 277,925
TOTAL CURRENT LIABILITIES 671,595 423,210 550,890
LONG-TERM LIABILITIES
Notes &
Mortgages Payable 2,678,145 2,424,991 2,322,279
TOTAL LONG-TERM LIABILITIES 2,678,145 2,424,991 2,322,279
TOTAL LIABILITIES 3,349,740 2,848,201 2,873,169
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 385,574 351,838 314,144
TOTAL STOCKHOLDERS'
EQUITY 2,209,646 2,175,910 2,138,216
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY 5,559,386 5,024,111 5,011,385
-3-
UPTOWNER INNS, INC., AND SUBSIDIARY
CONSOLIDATED INCOME STATEMENT (UNAUDITED)
FOR THE PERIODS ENDED MARCH 31, 1997 AND 1996
THREE MONTHS ENDED NINE MONTHS ENDED
3/31/96 3/31/97 3/31/96 3/31/97
REVENUES:
Rooms $ 262,003 $ 244,302 $ 976,367 $ 954,164
Food & Beverage 85,387 68,807 328,193 249,535
Telephone 542 10,469 20,620 27,132
Other 12,376 (353) 58,511 36,002
Rents 55,812 60,038 170,825 176,085
TOTAL REVENUE 416,120 383,263 1,554,516 1,442,918
COSTS AND EXPENSES:
Operating Departments
Cost of Sales 69,329 40,472 198,394 139,842
Salaries & Wages 97,356 91,214 328,513 339,984
Other 45,063 53,108 146,017 176,384
General & Admin. 21,582 17,908 82,816 77,209
Advertising 15,301 15,762 49,672 35,502
Utilites 34,399 24,860 99,656 81,505
Repair & Maint. 18,747 5,065 67,063 58,176
Interest 50,070 46,466 153,486 141,959
Taxes & Licenses 37,330 47,402 128,307 131,668
Insurance 20,508 12,743 37,666 40,038
Deprec. & Amort. 51,773 51,955 162,196 156,217
TOTAL COST AND EXPENSES 461,458 406,955 1,453,786 1,378,484
OPERATING INCOME (LOSS) (45,338) (23,692) 100,730 64,434
OTHER INCOME (EXPENSE)
Interest Income 30,799 6,996 30,799 6,996
NET INCOME (LOSS)
BEFORE TAXES (14,539) 6,996 131,529 71,430
FEDERAL INCOME TAXES
AND PENALTIES
Provision for
Taxes on Income -0- -0- 4,377 -0-
Deferred Federal
Income Taxes -0- -0- -0- -0-
TOTAL FEDERAL
INCOME TAXES -0- -0- 4,377 -0-
TOTAL NET INCOME
(LOSS) (14,539) (16,696) 127,152 71,430
EARNINGS PER SHARE (.01) (.01) .08 .05
DIVIDENDS PER SHARE -0- -0- -0- -0-
-4-
UPTOWNER INNS, INC., AND SUBSIDIARY
CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED)
FOR THE NINE MONTHS ENDED MARCH 31,
1996 1997
CASH FLOW FROM OPERATING ACTIVITIES:
Net Income (Accrual Basis; from
Statement of Income $ 127,152 $ 71,430
Add (Deduct) to Reconcile Net Income to
Net Cash Flow:
Accts. Receivables (Increase) Decrease 10,663 (6,332)
Inventories (Increase) Decrease 449 (990)
Prepaid Expenses Decrease (Increase) 6,574 5,848
Accounts Payable (Decrease) Increase 9,481 44,463
Accrued Liabilities (Decrease) Increase 6,822 9,793
Taxes Other Than Federal Income Tax
Increase (Decrease) (79,556) 57,449
Depreciation and Amortization Expense
(Including Franchise) 162,196 156,217
NET CASH OUTFLOW FROM OPERATIONS 243,781 337,878
CASH FLOW FROM INVESTING ACTIVITIES:
Cash Inflow:
From Sale of Investments 179,679 -0-
From Decrease (Inc.) of Other Assets (65,583) (345)
From Purchase of Operational Assets (359,659) 1,069,864
NET CASH INFLOW (OUTFLOW) FROM INVESTING
ACTIVITIES (245,563) 1,069,864
CASH FLOW FROM FINANCING ACTIVITIES:
Proceeds from Notes -0- 554,279
Payment on Notes and Mortgages (158,896) (189,413)
NET CASH INFLOW (OUTFLOW) FROM FINANCING
ACTIVITIES (158,896) 364,866
Net Increases (Decreases) in Cash Plus Cash
Equivalents for the Nine Months (160,678) (367,120)
Cash Plus Cash Equivalents at July 1 298,380 463,998
Cash Plus Cash Equivalents at March 31 137,702 96,878
Cash Paid for Interest in Nine Months 149,900 138,377
Cash Paid for Income Tax in Nine Months 4,377 -0-
-5-
UPTOWNER INNS, INC., AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
MARCH 31, 1997
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.
-6-
UPTOWNER INNS, INC., AND SUBSIDIARY
MANAGEMENT DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
MARCH 31, 1997
Total revenues decreased 7.2% for the nine-month period of 1997 compared
to nine months ended March 31, 1996. The decrease in Room Revenue of 2.3%,
and Other Revenues of 38.5% were partially offset by the 31.5% increase in
Telephone Revenues and 3.1% increase in Rent Revenues. Room Revenues have
been declining for several quarters due to competition. Food and Beverage has
declined for the same reason.
Costs and Expenses were reduced 5.1% due to reduced Cost of Sales (30%),
Advertising (28.5%), Utilities (18.2%), Repairs and Maintenance (13.3%),
Depreciation (3.7%), and Interest (7.5%). Increases in Salaries and Wages
(3.5%), Other (21%), Taxes and Licenses (2.6%), and Insurance (6.3%) offset
the reductions. Management has attempted to reduce operating costs due to the
declining revenues and the temporary status of the current motel operations
pending the completion and opening of a new operation approximately seven
blocks from the present location. Additionally, the loss of the Holiday Inn
franchise in January, 1997, has caused some revenue decrease, but this has
been overcome greatly by the costs eliminated for franchise fees,
institutional advertising, and other franchise requirements.
The registrant's liquidity has eroded further as evidenced by the current
ratio of 1.5 at March 31, 1996, compared to 1.01 at June 30, 1996, and .28 to
1 at March 31, 1997. Temporary investments obtained from proceeds on the sale
of real estate in Parkersburg, West Virginia, in 1995 were used to acquire
land and commence construction on the new facility to be opened in late
February 1998. The liquidity is also negatively affected by the seasonal
downtown business experienced in the previous four months. It is anticipated
that any improvement will be only slight and that the next year to twenty-four
months will not show significant improvement, if any.
-7-
UPTOWNER INNS, INC., AND SUBSIDIARY
SIGNATURES
MARCH 31, 1997
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: April 28, 1997 By Violet Midkiff
Violet Midkiff
President
Date: April 28, 1997 By James R. Camp
James R. Camp
Treasurer
-8-