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Hilton Hotels, 1959 Annual Report
Image 13
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Hilton Hotels Corporation. Hilton Hotels, 1959 Annual Report - Image 13. 1959. Hospitality Industry Archives, Conrad N. Hilton College of Hotel and Restaurant Management, University of Houston. University of Houston Digital Library. Web. June 3, 2020. https://digital.lib.uh.edu/collection/hiltonar/item/1208/show/1184.

Disclaimer: This is a general citation for reference purposes. Please consult the most recent edition of your style manual for the proper formatting of the type of source you are citing. If the date given in the citation does not match the date on the digital item, use the more accurate date below the digital item.

Hilton Hotels Corporation. (1959). Hilton Hotels, 1959 Annual Report - Image 13. Annual Reports from the Hospitality Industry Archives. Hospitality Industry Archives, Conrad N. Hilton College of Hotel and Restaurant Management, University of Houston. Retrieved from https://digital.lib.uh.edu/collection/hiltonar/item/1208/show/1184

Disclaimer: This is a general citation for reference purposes. Please consult the most recent edition of your style manual for the proper formatting of the type of source you are citing. If the date given in the citation does not match the date on the digital item, use the more accurate date below the digital item.

Hilton Hotels Corporation, Hilton Hotels, 1959 Annual Report - Image 13, 1959, Annual Reports from the Hospitality Industry Archives, Hospitality Industry Archives, Conrad N. Hilton College of Hotel and Restaurant Management, University of Houston, accessed June 3, 2020, https://digital.lib.uh.edu/collection/hiltonar/item/1208/show/1184.

Disclaimer: This is a general citation for reference purposes. Please consult the most recent edition of your style manual for the proper formatting of the type of source you are citing. If the date given in the citation does not match the date on the digital item, use the more accurate date below the digital item.

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Compound Item Description
Title Hilton Hotels, 1959 Annual Report
Creator (LCNAF)
  • Hilton Hotels Corporation
Publisher Hilton Hotels Corporation
Date 1959
Description Hilton Hotels Annual Report for calendar year 1959.
Subject.Topical (LCSH)
  • Hospitality industry
  • Hotel management
  • Corporation reports
Subject.Name (LCNAF)
  • Hilton Hotels Corporation
Genre (AAT)
  • annual reports
  • business records
Language English
Type (DCMI)
  • Text
  • Image
Original Item Location Conrad N. Hilton Papers
Digital Collection Annual Reports from the Hospitality Industry Archives
Digital Collection URL http://digital.lib.uh.edu/collection/hiltonar
Repository Hospitality Industry Archives, Conrad N. Hilton College of Hotel and Restaurant Management, University of Houston
Repository URL http://www.uh.edu/hilton-college/About/hospitality-industry-archives
Use and Reproduction No Copyright - United States
File Name index.cpd
Item Description
Title Image 13
Format (IMT)
  • image/jpeg
File Name hiltonar_201609_012_013.jpg
Transcript THE HILTON DOLLAR INCOME FROM OPERATIONS Rooms Food Beverages Telephone , Other departments Store and office building rentals Other income , EXPENDITURES Payroll and related expenses Cost of goods sold Other expenses Repairs and maintenance (excluding payroll and related expenses) Property taxes Lease rentals Interest I ncome taxes Dividends Depreciation Reinvested in the business 42.8£ 32.8 12.3 3.0 4.6 1.9 2.6 $1.00 39.7^ 1 /. 1 13.4 3.6 3.7 8.2 1.3 4.3 2.4 4.1 2.2 $1.00 #* Financial Condition Capital expenditure requirements for new properties through 1961 are estimated at $45 million. This is in addition to amounts already expended prior to December 31, 1959. Approximately two-thirds of this amount will be invested in hotels and the remainder in Inns. Arrangements were completed during 1959 to cover the costs of this expansion program. On October 29, Hilton Hotels Corporation sold $30 million of 6% subordinated sinking fund debentures, maturing in 1984, with detachable stock purchase warrants. The underwriting group was composed of 63 leading investment banking firms. Each $1,000 debenture carried a warrant to purchase 15 shares of Hilton Hotels common stock. The warrants provide that this stock can be purchased at $42 a share until October 15, 1963; at $46 from then until October 15, 1967; and at $50 from then until October 15, 1971, the expiration date for the warrants. The indenture calls for a sinking fund to begin in 1965. Stock purchased upon exercise of the warrants may be paid for by the surrender of the debentures at par. We anticipate that any cash proceeds resulting from the exercise of the warrants will be used to increase working capital or for other corporate purposes. If all of the warrants are exercised, 450,000 additional common shares will be issued between now and 1971. Nearly $23,500,000 of the proceeds of the debenture issue was temporarily invested in highly liquid short term securities. These consisted of $2,500,000 of U. S. Treasury tax anticipation bills which matured in March, 1960; finance company notes with a May, 1960, maturity value of $10,000,000; New York City Public Housing Authority notes with a May, 1960, maturity value of $2,500,000; and $8,500,000 in certificates of deposit and time deposits. Interest received partially offsets interest payments on the debentures. To insure having adequate funds to carry out its expansion program in view of the tight money market, the Corporation entered into a credit agreement on September 22, 1959, with a group of 17 leading banks. This makes available up to $25,000,000 at 5/4 per cent interest. The agreement provides for quarterly payments on the sums borrowed, beginning January 15, 1962, with a final maturity of September 15, 1966. During the first two years a standby fee is payable on funds not drawn. No funds as yet have been taken down under this agreement. Any funds not borrowed during the first two years will no longer be available to the Corporation. The Company took down $10,000,000 under the $12,000,000, 4 per cent mortgage commitment on The Pittsburgh Hilton. The remaining $2,000,000 will be drawn on April 1, 1960. The long term indebtedness of the Company at year-end was equal to only 45.9 per cent of the sum of depreciated book value of capital assets, investments at cost and net working capital. Working capital, at the year-end was $32,925,130, or $8.69 per share of common stock, compared with $19,815,494, or $5.14 per share, a year earlier. Current assets, including cash of $33,545,411, totaled $68,295,723. Current liabilities equalled $35,370,593; thus the current 11