Other departments 4.8?!
Store and office building rentals 1.9?!
Other income 2.7?!
Payroll and related expenses 40.2?!
Cost of goods sold 17.1?!
Other expenses 15.3?!
Repairs and maintenance q cj
(excluding payroll and related expenses)
Property taxes 4.0?!
Lease rentals 6.3?!
Income taxes 2.2?!
Hilton Credit has been operating its Carte Blanche
all-purpose credit card plan profitably during its
current fiscal year which began May 1, 1962. However, in the three years since commencement of
operations to April 30, 1962, Hilton Credit Corporation had losses in excess of $9,000,000. Bank indebtedness of $12,150,000 has been extended for an
additional year and the $5,000,000 of subordinated
notes, $1,900,000 of which are held by Hilton Hotels
Corporation, have been extended for a like period.
The contract under which Hilton Hotels sells, at a
discount, certain of its accounts receivable to Hilton
Credit expires March 31, 1963, and will be continued from month to month. The maturity of Hilton
Credit's debt in 1964, the expiration of the contract
with Hilton Hotels and the uncertainty of the discount rate to be charged in the future were factors
influencing your directors to make the offer to the
shareholders of Hilton Credit Corporation.
Hilton Hotels owns a 50 per cent stock interest in
each of the following non-consolidated companies:
Hilton-Burns Hotels Company, Inc., owner of the
Hilton Hawaiian Village; The Kahala Hilton Hotel
Company, Inc., which is building The Kahala
Hilton; Hilton-Uris, Inc., which is building The
Washington Hilton, and Hilton-Dorval Limited,
which is building the Montreal Airport Hilton.
Hilton Hotels also has a 25 per cent interest in
Rock-Hil-Uris, Inc., which is building The New
York Hilton. Hilton's interests in these hotels are
carried as investments, thus their operating results
will not be included in the statement of consolidated
income of Hilton Hotels. The Corporation will receive management fees, interest on debentures and
dividends paid by the operating companies.
The investments of the Corporation were reduced
from $24,155,504 at December 31, 1961, to
$21,943,356 at December 31, 1962. The reduction
resulted primarily from the merger of Statler Hotels
Delaware Corporation into Hilton Hotels Corporation, whereby a note of Statler Hotels Delaware
Corporation owned by the Corporation was eliminated. The wholly-owned subsidiary, Hilton Hotels
International, Inc., has relatively small investments
in hotels in Rome, Amsterdam, Rotterdam, Dublin
and Paris (Orly Airport).