REPORT ON 1950 OPERATIONS
Detailed results of the operations of Hilton Hotels
Corporation and its subsidiaries for 1950 are given
on the following pages, accompanied by financial
statements as reported on by Harris, Kerr, Forster
& Company, independent public accountants.
Gross Revenue and Earnings
Gross revenue amounted to $45,656,736 in the year
ended December 31, 1950, compared with $42,-
227,028 in 1949.
The 1950 net profit, after all charges including
Federal income tax, was $4,035,646, as against
$3,983,233 in the preceding year.
After providing for payment of dividends on
convertible preference stock, the 1950 net profit
was equal to $2.56 a share on the 1,498,217 common shares outstanding in the hands of the public
on December 31, last. This compared with $2.52
a share on the 1,480,592 shares outstanding on the
last day of 1949.
The foregoing figures do not include the interest
of Hilton Hotels Corporation in the undistributed
earnings of its partially owned subsidiaries, aggregating $900,405 in 1950. Of this amount, $581,467
represented a 58.13 per cent interest in the net
profits of the Hotel Waldorf-Astoria Corporation.
The 69.81 per cent interest in the Mayflower Hotel
Corporation accounted for $400,021, of which
$108,754.40 was paid to Hilton Hotels in dividends
and $291,267 remained undistributed. In 1949 the
Hilton Hotels Corporation's equity in the Waldorf-
Astoria earnings was $72,507, and equity in the
Mayflower earnings amounted to $281,681. Of
this, $81,547.80 was paid in dividends and the
balance remained in Mayflower Hotel Corporation.
1947 1948 1949
In 1950 Hilton Hotels Corporation's equity in
the undistributed earnings of these partially owned
subsidiaries was equal to 60 cents a share on Hilton
common stock, compared with 18 cents a share in
1949. Net income of the corporation, plus the
equity in earnings of unconsolidated subsidiaries,
represented $3.16 a common share in 1950, and
$2.70 in 1949.
The regular quarterly dividend of 25 cents a share
on the common stock was paid March 1, 1950. On
May 5, the annual dividend rate was increased
from $1.00 to $1.20 a share, and the new quarterly
amount of 30 cents a share was paid on June 1,
September 1 and December 1. Total payments for
the year were $1.15 a share.
The increase in dividend payments reflected the
opinion of the Board of Directors that larger disbursements to shareholders were warranted in view
of the corporation's sustained earnings.
Regular quarterly dividends of 50 cents a share
were paid on all convertible preference stock not
under option to the corporation.
Total dividend distribution of $1,808,461 represented 45 per cent of the net profit for the year.
This compared to $1,614,762 or 41 per cent of the
net profit disbursed in 1949.
Funded and Long Term Indebtedness
There was an increase in funded and long term
indebtedness during the year of $4,324,178 as shown
on the accompanying schedule. The major changes
were the borrowing of an additional $2,500,000 on
the Stevens Mortgage and the new obligations
entered into as an installment purchase contract
in the acquisition of property in Beverly Hills.
debt secured by property
December December Interest
Property Mortgaged 31, 1950 31, 1949 Rate
Palmer House $15,040,000.00 $15,360,000.00 3^%
Plaza 5,453,697.47 5,830,518.99 4
Stevens 4,500,000.00 2,000,000.00 4
Town House 350,000.00 350,000.00 4^
El Paso Hilton 91,500.00 106,500.00 4
DEBT SECURED BY CREDIT
Beverly Hills Purchase
Contract and Note 2,550,000.00 —0— It
Various Notes of Predecessor Corporations__9J7i01_L_41 111,011.41 4
Totals $28,082,208.88 $23,758,030.40
* This contract and note call for interest at 1 per cent a
year until November 22, 1952, 2 per cent a year November
23, 1952 to November 22, 1954, and 4 per cent thereafter.