Consolidated net profit realized from operations of Hilton
Hotels Corporation in 1957 amounted to $8,609,064.
This was equal, after preferred dividends, to $2.05 per
share on the 3,938,671 shares of common stock outstanding at the close of the year. For 1956, consolidated net
profit from operations was $9,587,214, the equivalent of
$2.53 per share, after preferred dividends, on the
3,671,602 common shares then outstanding.
There were no property sales during 1957. Profits from
this source, realized from sales in previous years, were
$1,454,554 after deducting applicable capital gains tax
and were equal to 37 cents per share. In 1956, owing to
extraordinary circumstances which led to the sale of no
less than four major properties, profits derived from
property sales amounted to a record $7,165,155 after
taxes, or $1.95 per common share.
Total consolidated net profit of Hilton Hotels Corporation in 1957, after all charges and taxes, amounted to
$10,063,618, equal after preferred dividend requirements to $2.42 per share. In 1956, the total consolidated
net profit amounted to $16,752,369, equal after preferred
dividends to $4.48 per share on the then outstanding
Over-all earnings were affected by heavy expenditures
for repairs and maintenance in 1957. This expense rose
to a new high of $12,071,637 in 1957 from $10,715,822
the year before. The combined expenditures for repairs
and maintenance and modernization in 1957 were
$19,715,692, compared with the $19,017,740 so spent in
1956. These expenditures brought to virtual completion
a number of major improvement programs covering air
conditioning, rewiring and other projects. Modernization costs in 1958 will be substantially below those of 1957.
On December 31, 1957, there remained unrealized
profit from property sales of prior years in the amount of
$17,150,348, which will be applied to your Corporation's
income over the next nine years. This profit, after provision for taxes at the current capital gains rate, amounts
to $3.26 per share on the 3,938,671 common shares
outstanding on December 31, 1957.