FelCor Lodging Trust Earnings Cheat Sheet: Revenue Falls After Four Straight Quarters of Rising

FelCor Lodging Trust (NASDAQ:FCH) reported its results for the second quarter. Felcor Lodging Trust, Inc. is a real estate investment trust, which is engaged in hospitality business.

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FelCor Lodging Earnings Cheat Sheet for the Second Quarter

Results: Swung to a loss of $42.3 million (loss of 42 cents per diluted share) in the quarter. The real estate investment trust had net income of $21.6 million or 17 cents per share in the year earlier quarter.

Revenue: Fell 12.5% to $257.4 million from the year earlier quarter.

Actual vs. Wall St. Expectations: FCH reported funds from operations of 13 cents per share, which fell short of the mean analyst estimate of 16 cents per share. It fell short of the average revenue estimate of $267.6 million.

Quoting Management: “We continue to successfully execute our strategy to improve our portfolio quality and long-term growth and to restructure our balance sheet. We issued senior notes at a very favorable rate and used the proceeds to acquire two strategic hotels in Manhattan and retire higher cost debt. We also sold six non-strategic hotels this year and used the net proceeds to repay debt. We are mid-way through the first group of asset sales, which have progressed faster than anticipated, and expect to complete the sale of these remaining hotels this year,” said Richard A. Smith, FelCor’s President and Chief Executive Officer.

Key Stats:

A year-over-year revenue decrease last quarter snaps a streak of four consecutive quarters of revenue increases. The best quarter in that span was the second quarter of the last fiscal year, which saw revenue rise 22.4%.

The company fell short of forecasts after beating estimates in the previous two quarters. In the first quarter, it topped the mark by 2 cents, and in the fourth quarter of the last fiscal year, it was ahead by 3 cents.

Competitors to Watch: Morgans Hotel Group Co. (NASDAQ:MHGC), InnSuites Hospitality Trust (AMEX:IHT), DiamondRock Hospitality Co. (NYSE:DRH), Chatham Lodging Trust (NYSE:CLDT), Sunstone Hotel Investors, Inc (NYSE:SHO), Hersha Hospitality Trust (NYSE:HT), Pebblebrook Hotel Trust (NYSE:PEB), LaSalle Hotel Properties (NYSE:LHO), Hospitality Properties Trust (NYSE:HPT), and Supertel Hospitality Inc. (NASDAQ:SPPR).

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(Source: Xignite Financials)