ratio was 1.9 to 1. At December 31, 1958, current assets were
$52,535,579, including cash of $30,021,144, and current liabilities
were $32,720,084, for a current ratio of 1.6 to 1.
Unrealized profits from the sale of properties in prior years totaled
$13,207,904 at December 31, 1959. After provision for taxes at the
current capital gains rate, this equaled $2.61 per share based on the
common shares outstanding at the year-end. This profit will be taken
into the Corporation's earnings over the next seven years as it is realized.
The following is a condensed consolidated statement of source and
application of funds for the year ended December 31, 1959:
SOURCE OF FUNDS:
Net profit $11,582,864
Less: Net profit from property sales 1,533,007
Net profit from operations 10,049,857
Depreciation and amortization 9,117,318
Collections on notes receivable 3,507,502
New financing 39,325,000
Decrease in other net assets 6,755,489 $68,755,166
FUNDS APPLIED TO:
Reduction of long-term debt $13,769,241
Capital expenditures 27,215,508
Purchases of treasury stock 2,425,669
Increase in cash 3,524,267 $68,755,166
Expenditures for modernization in 1959 amounted to $6,084,035, up
sharply from the $4,829,073 expended in 1958. Although there were
relatively few major capital programs, Hilton properties are always
in the process of being improved to insure their profit-generating
ability in future years. Automatic dial telephone systems were completed at The Palmer House and The Conrad Hilton. Guests are now
able to dial all local and many suburban calls without going through
the hotels' switchboards, while direct connections with the toll centers
insure faster service on long distance calls. In addition, at The Conrad
Hilton guests can now dial from room to room.
During the past few months the lobby area of The Savoy Hilton has
been transformed into a gracious entrance foyer. The superb dining
and dancing room, The Columns, suggests a Mediterranean garden
terrace. The Savoy Room and Bar combines contemporary and renaissance decor. The Savoy Hilton now has three most attractive dining
rooms—Trader Vic's, The Columns, and the Savoy Room and Bar.
In the course of its renovation, The Savoy Hilton has retained its
grandeur while being enhanced by new beauty.
Other major modernization included the complete air-conditioning
of The Statler Hilton, Boston, at a cost of $2 million. Plans have been
completed for the installation of a Trader Vic's restaurant in The
Statler Hilton, Washington, with work scheduled to begin this spring.
A $3 million modernization plan for The Waldorf-Astoria was started
in 1959, providing for the redecoration and refurnishing of many guest
rooms and the creation of new restaurants. A considerably larger