1943 1944 1945 1946 TS47
Compiled from figures on page 26.
1943 1944 1945 1946 1947
Compiled from figures on page 26. 'Excluding non-re*
J^^»8>roff» of $10,625 in 1946 and $949,508 In 1947.
Your corporation purchased additional shares of Mayflower Hotel
Corporation, Washington, D. C. during the past year, and at the end of
the year held 68.75 per cent of the total stock outstanding. Hilton
Hotels Corporation also owns a 50 per cent interest in The Neil House
Company, Columbus, Ohio, and the Palm Beach Biltmore Company.
Your corporation received dividends of $80,351 from the Mayflower
Hotel Corporation. The undistributed earnings equity of these three
companies has not been included in the income account for the
year ended December 31, 1947. Hilton Hotels' share ill the undistributed earnings amounted to $249,056.02, or 15 cents a share
on the common stock.
Regular quarterly dividend distributions of 50 cents a share were
made on convertible preference stock in 1947. Common dividend
payments of 25 cents each also were made at quarterly intervals.
Last year's dividend distributions, totalling $2,039,198 in amount,
represented 37 per cent of the net profit accumulated during the year.
The remaining $3,469,842, or 63 per cent of net profit, was reinvested
in the business.
Regular quarterly payments of 50 cents a share on convertible
preference stock and 25 cents a share on common stock were made
March 1, 1948. Directors on March 6 also ordered regular quarterly
distributions of 50 cents a share on convertible preference stock and
25 cents a share on common stock, both payable June 1, 1948, to
shareholders of record May 20, 1948.
CAPITAL STRUCTURE STRENGTHENED
One of the objectives of Hilton Hotels Corporation has been to
consolidate funded debt and reduce the fixed charges. This policy is
not only beneficial to the current position, but it will enable the
corporation to meet in better fashion whatever economic conditions
may be ahead.
In pursuit of this objective a major step was taken in 1947 to
simplify and strengthen your corporation's capital structure. Last
May $16,000,000 of 3H% First Mortgage Palmer House Bonds maturing in 1972 were sold to The Equitable Life Assurance Society of the
United States. The proceeds were used chiefly to pay off the following
bonds and mortgages:
Palmer House '. $10,200,000.00
Stevens I 4,221,791.46
Long Beach Hilton 335,790.12
Lubbock Hilton 301,986.25
Town House 207,750.00
The new bonds have a sinking fund requirement calling for retirement
of 80 per cent of the issue by maturity. However, Hilton Hotels has
the privilege of prepaying up to $1,000,000 a year. This will permit