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HERATON
CORPORATION
0 F
AMERICA
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our company has enjoyed a successful year, although earnings are somewhat lower than in the preceding year. Total earnings from all sources were $4,182,-
107 as compared with $4,910,256 for the prior year.
The reduction in earnings was due in part to the heavy
modernization program in progress in many of the
Canadian hotels. Earnings were also affected by an
increase of $554,033 in income taxes as well as by a
reduction in the so-called "non-recurring items" as
indicated in the schedule below.
EARNINGS PER COMMON SHARE
Earnings applicable to each of the Company's outstanding shares of common stock for the years ended
April 30 were as follows:
1962 1951
Net Operating Earnings
(after Preferred Dividends) $1.66 $1.90
Net Profits from Sale of
Properties and Securities .78 .79
Other Non-Recurring Items .27 .54
.71
$3.23
Number of Common Shares
Outstanding
$1,531,405 $1,503,874
DIVIDENDS
On April 30, 1952, all the remaining outstanding preferred stock of the Company was called for redemption,
and the transfer books were permanently closed as of
that date. For the year ended April 30,1952, cash dividends of 60fS per common share were paid. Since the
close of the fiscal year the Directors voted on June 19,
1952, the usual 15j5 quarterly dividend, together with a
special common stock dividend of one share of the
Company's common stock for each twenty shares held
as of July 8, 1952, payable August 1,1952. Although no
binding policy with respect to future stock distributions
can be established at this time, it is expected that
future stock dividends in approximately the same
amount will be considered annually by the Directors.
Upon payment of the 5% stock dividend on August
1,1952, your company charged Earned Surplus $773,505
with resulting increases to Capital Stock of $73,759 and
Paid-in Surplus of $663,831. Those changes resulted
from the issue of 73,759 shares together with the payment of $35,915 in cash in lieu of 2,636 fractional
shares. For the fiscal year ended April 30, 1952 the
approximate average of the monthly high and low sale
price of the Common Stock on the New York Stock
Exchange was $10, resulting in the $9 transfer to Paid-
in Surplus after increasing Capital Stock by $1 per
share, the par value thereof. It is estimated that sale of
the stock dividend by the average stockholder would
decrease his pro rata ownership in the company by less
than Y2%.
GROSS INCOME
Gross Operating and Other Income (excluding
profits from sale of properties and securities) amounted
to $62,772,723 for the year ended April 30, 1952, or
12% more than the $56,070,595 for the year before.
The 1952 total includes $58,500,329 from hotel operations, $3,317,767 commercial building income and
627 from other sources.
OPERATIONS AND IMPORTANT TRANSACTIONS
The Company has again followed the policy of
reinvesting a substantial portion of its earnings as well
as funds derived from other sources in improvement of
its properties and to the acquisition of new properties in
areas where Sheraton is not adequately represented.
The program of converting two-room suites into single transient rooms has been continued. Modernization and redecoration of many of the Company's
facilities have made it possible for many Sheraton
properties to enjoy better rates and higher occupancy
than would otherwise have been possible. The Company's technical staff including decorators, designers,
engineers, food and beverage control specialists, as
well as specialists in job study, analysis and scheduling,
has distinguished itself to a high degree as is attested
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