To the Shareholders of
Hilton Hotels Corporation:
We submit to you, the 2,522 shareholders of
Hilton Hotels Corporation, our annual report
for the year ended December 31, 1948, including auditors' certificate of Harris, Kerr, Forster
& Company, consolidated balance sheet and
summaries of consolidated profit and loss and
surplus accounts. The consolidated financial
statements include the wholly-owned subsidiary, Hilton Hotels International, Inc.
Gross receipts from business done by the corporation's properties were greater than in any
previous year, but earnings for 1948 show a decline from those of 1947, due largely to three
1. A decrease of $1,020,192 in earnings occasioned by a non-recurring loss of $70,684
in 1948 as against a non-recurring profit
of $949,508 in 1947.
2. An increase of $723,002 in repairs and
maintenance; from $2,080,348 in 1947 to
$2,803,350 in 1948.
3. An increase of $308,662 in depreciation;
from $1,974,050 in 1947 to $2,282,712 in
Charts and tables accompanying this report
afford interesting studies of comparative costs
and operating results, and in order to effect better comparisons, figures for three years are given.
Hilton Hotels Corporation was created by
consolidation as of May 31, 1946. Figures for the
year 1946 include seven months' operation by
the corporation and five months' operation by
the consolidating companies and their predecessors.
Gross operating revenues and net profits for
the years 1948, 1947 and 1946 were:
Net profits were:
1948 $ 3,917,805
There were no non-recurring profits in 1948
but, in fact, due to the abandonment of certain
equipment at the Plaza, a non-recurring loss of
$70,684. The 1947 Net Profit includes $949,508
of non-recurring profits and 1946 includes
The net profit for 1948 was equal to $2.28 per
share on the 1,583,545 common shares outstanding in the hands of the public on December 31st
last after providing for dividends on the convertible preference stock. For the year ended
December 31, 1947, total earnings were equal to
$3.15 per share on the 1,618,578 common shares
then outstanding, including 59 cents per common share representing non-recurring profits
resulting from the sale of assets. In 1946 earnings were equal to $1.90 per share on the
1,618,377 common shares then outstanding, including one cent per share non-recurring profit.