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_SEPTEMBER 30, 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 jurisdiction of I.R.S. Employer
incorporation or organization Identification Number
1415 4th Avenue, Huntington, West Virginia 25701
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 _SEPTEMBER 30, 1997_________
Common Stock-$.50 par value 1,583,563 Shares
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UPTOWNER INNS, INC., AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
ASSETS
SEPTEMBER 30, JUNE 30 ,
1997 1996 1997
(Unaudited) (Unaudited)
CURRENT ASSETS:
Cash $ 205,587 $ 294,187 $ 245,427
Accounts & Notes Rec. 28,097 41,591 25,203
Inventories 6,996 10,863 5,996
Prepaid Expenses 41,649 17,877 51,439
TOTAL CURRENT ASSETS 282,329 364,518 328,065
PROPERTY, PLANT AND EQUIPMENT
Land 1,554,112 1,381,323 1,554,112
Building & Improvement 4,989,345 5,322,204 4,989,345
Construction in Progress 2,960,575 199,311 1,698,276
Furniture & Equipment 1,463,768 1,449,174 1,463,768
TOTAL 10,967,800 8,352,012 9,705,501
Less: Accumulated Dep.
and Amortization 3,677,921 3,662,479 3,625,966
TOTAL PROPERTY, PLANT
AND EQUIPMENT 7,289,879 4,689,533 6,079,535
OTHER ASSETS:
Deposits and Other 128,210 69,460 128,210
TOTAL OTHER ASSETS 128,210 69,460 128,210
TOTAL ASSETS 7,700,418 5,123,511 6,535,810
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UPTOWNER INNS, INC., AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
LIABILITIES AND STOCKHOLDERS' EQUITY
SEPTEMBER 30, JUNE 30,
1997 1996 1997
(Unaudited) (Unaudited)
CURRENT LIABILITIES:
Accounts Payable $ 642,299 $ 155,291 $ 635,311
Accrued Liabilities 92,058 77,864 103,360
Taxes Other Than Federal
Income Taxes 112,621 130,603 190,332
Notes Payable
Current Portion of
Long-Term Debt 271,282 277,925 272,482
TOTAL CURRENT LIABILITIES 1,118,260 641,683 1,201,485
LONG-TERM LIABILITIES
Notes &
Mortgages Payable 4,367,113 2,269,588 3,119,901
TOTAL LONG-TERM LIABILITIES 4,367,113 2,269,588 3,119,901
TOTAL LIABILITIES 5,485,373 2,911,271 4,321,386
STOCKHOLDER'S EQUITY
Common Stock, par value
$0.50 per share; authorized
5,000,000 shares; 791,782 791,782 791,782
Additional Paid-In
Capital 1,032,290 1,032,290 1,032,290
Retained Earnings 390,973 388,168 390,352
TOTAL STOCKHOLDER'S
EQUITY 2,215,045 2,212,240 2,214,424
TOTAL LIABILITIES AND
STOCKHOLDER'S EQUITY 7,700,418 5,123,511 6,535,810
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UPTOWNER INNS, INC., AND SUBSIDIARIES
CONSOLIDATED INCOME STATEMENT (UNAUDITED)
FOR THE THREE MONTHS ENDED SEPTEMBER 30
3 MONTHS 3 MONTHS
9/30/97 9/30/96
REVENUES:
Rooms $ 249,312 $ 395,568
Food & Beverage 62,509 86,378
Telephone 7,826 8,008
Rents 64,934 57,026
Other 7,742 10,937
TOTAL REVENUE 392,323 557,917
COSTS AND EXPENSES:
Operating Departments
Cost of Sales 33,062 48,790
Salaries & Wages 103,009 117,814
Other 28,936 62,373
General Admin. 15,230 27,064
Advertising 9,853 16,856
Utilities 31,646 33,246
Repairs & Maintenance 15,846 23,503
Interest 49,604 48,222
Taxes & Licenses 39,607 40,640
Insurance 12,954 13,612
Deprec. & Amort. 51,955 51,773
TOTAL COST AND EXPENSE 391,702 483,893
OPERATING INCOME 621 74,024
OTHER INCOME (EXPENSE)
Interest Income -0- -0-
NET INCOME (LOSS) BEFORE TAXES 621 74,024
FEDERAL INCOME TAXES AND PENALTIES
Provision for Taxes on Income -0- -0-
Deferred Federal Income Taxes -0- -0-
Tax Penalties -0- -0-
TOTAL FEDERAL INCOME TAXES -0- -0-
TOTAL NET INCOME 621 74,024
EARNINGS PER SHARE .00 .05
DIVIDENDS PER SHARE $ -0- $ -0-
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UPTOWNER INNS, INC., AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED)
FOR THE THREE MONTHS ENDED SEPTEMBER 30
1997 1996
Cash Flow From Operating Activities:
Net Income (Accrual Basis; from
Statement of Income $ 621 $ 74,024
Add (Deduct) to Reconcile Net Income to
Net Cash Flow:
Accts. Receivables (Increase) Decrease (2,894) 13,065
Inventories (Increase) Decrease (1,000) (1,637)
Prepaid Expenses Decrease (Increase) 9,790 10,521
Accounts Payable (Decrease) Increase 6,988 84,109
Accrued Liabilities (Decrease) Increase (11,302) (16,177)
Taxes Other Than Federal Income Tax
Increase (Decrease) (77,711) 22,861
Deposits (Decrease) -0- 344
Depreciation and
Amortization Expense 51,955 51,773
NET CASH OUTFLOW FROM OPERATIONS (23,553) 238,883
Cash Flow from Investing Activities:
Cash Outflows:
Paid for Operational Assets & Other (1,262,299) (356,003)
NET CASH INFLOW (OUTFLOW) FROM INVESTING
ACTIVITIES (1,262,299) (356,003)
Cash Flow from Financing Activities:
Cash Outflows:
Loan Proceeds 1,262,299
Payment on Notes and Mortgages (16,287) (52,691)
NET CASH INFLOW (OUTFLOW) FROM FINANCING
ACTIVITIES 1,246,012 (52,691)
Net Increases (Decreases) in Cash Plus Cash
Equivalents for the Three Months (39,840) (169,811)
Cash Plus Cash Equivalents at July 1 245,427 463,998
Cash Plus Cash Equivalents at September 30 205,587 294,187
Cash Pd for Interest in the Three Months 48,409 47,027
Cash Pd for Income Taxes in The Three Months -0- -0-
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UPTOWNER INNS, INC., AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
SEPTEMBER 30, 1997
1. The financial statements presented reflect Uptowner Inns, Inc.,
and its consolidated subsidiaries: 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, 1997.
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UPTOWNER INNS, INC., AND SUBSIDIARIES
MANAGEMENTS DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
SEPTEMBER 30, 1997
The quarter ending September 30, 1997 reflects an overall decline in
revenues of 30% compared to September 30, 1996 resulting from the loss of the
Holiday Inn franchise and the public comments that the current operation would
cease to operate as a motel and restaurant when the new project is completed.
Room revenues decreased 37% compared to the same quarter in the previous year
and food and beverage was down 28%.
The loss of the franchise did result in a decrease in Costs--Other due to
the franchise fees required in the previous year and advertising paid to the
franchisor was also eliminated.
The company has reduced the repairs and maintenance to the necessary
items to contain costs and to eliminate some repairs that may be unnecessary
if the present facility is converted to another use.
With the decline in revenues, costs have been reduced as much as possible
to better cope with the current cash flow problems. The Statement of Cash
Flows indicates the operations generated a negative cash flow of $23,553 and
the debt reduction of $16,287 further reduced available funds.
The company has no significant change in liquidity since June 30, 1997,
but the current ratio of .25 to 1 is a serious problem that is being addressed
by management. It is not anticipated that it will improve substantially in
the near term, but efforts are being made to renegotiate long-term debt to
maintain liquidity or slightly improve it.
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UPTOWNER INNS, INC., AND SUBSIDIARIES
SIGNATURES
SEPTEMBER 30, 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: October 31, 1997 By Violet Midkiff
Violet Midkiff
President
Date: October 31, 1997 By James R. Camp
James R. Camp
Treasurer
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