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For the fiscal year ended April 30th, Sheraton
made good progress, maintaining the upward
trend of earnings from operations, despite exceptionally heavy charges for rehabilitation, large
increases in reserves for depreciation, and substantial charges against earnings in connection
with the new Philadelphia Sheraton. Net income
from operations was $4,747,881 compared with
$4,436,279 the previous year. Total reported
earnings, including capital gains were somewhat
lower than a year ago due to smaller realized
gains from sales of real estate and securities.
Realized gains amounted to $653,689 compared
with $2,214,768 the prior year, resulting in total
reported earnings of $5,401,570 versus $6,651,047
a year ago. Although during the year sales of
properties and securities from which capital gains
are derived were relatively unimportant, the
increase in indicated unrealized gains was
substantial.
Earnings per share, both excluding and including
allowance for depreciation, and the indicated
net asset values based on common shares outstanding at year ends, adjusted for stock dividends
to the present basis of 4,524,079 shares on April
30, 1957, were as follows:
1957 1956 1955
Net Income from Operations
Omitting Depreciation
Including Depreciation
Net Profit from Sale of
Properties and Securities
Total Net Reported Earnings (After Depreciation)
Indicated Net Asset Value 26.93
Rise in Indicated Net Asset
Value
Dividends Paid
"Economic Performance"
(Consisting of rise in indicated net asset value,
plus cash dividends paid) $3.81 $3.87 $3.33
$3.68
$2.76
$2.09
1.05
.98
.90
.14
.49
1.05
1.19
1.47
1.95
26.93
23.64
20.21
3.29
.52
3.43
.44
3.04
.29
SOURCES OF FINANCIAL DATA
The foregoing amounts, except for those relating
to "indicated asset values", are based on audits
of Harris, Kerr, Forster & Co., certified public
accountants.
The calculations of indicated net asset values are
based on careful estimates by Company officers
of the market value at which the real estate properties could be sold at a given time, after deducting all known liabilities. These estimates are believed to be conservative.
DIVIDENDS
Quarterly cash dividends of $.15 per common
share were declared during the 1957 fiscal year.
In addition, a regular stock dividend of 2% was
paid on August 1, 1956 and a special stock dividend of 20% was paid on March 1,1957, so that
in effect there occurred a 22% increase in the
$.60 annual rate of cash dividends per share.
The dividend record since 1941, shown in the
chart on page 6, gives effect to all stock dividends and stock split-ups which have occurred.
TOTAL SALES
Sales volume for the fiscal year 1957 was
$153,791,701 compared with $121,672,472 for
1956 and $89,375,592 two years ago. Sales for
the coming fiscal year are expected to exceed
$170,000,000.
INCREASE IN "FREE AND CLEAR" EARNINGS
At the beginning of the year, Sheraton owned
thirty-one hotels. During the year one of the
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