SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20459
FORM 10-Q
QUARTERLY REPORT UNDER SECTION 13 OR 15 (d) OF
THE SECURITIES EXCHANGE ACT OF 1934
FOR QUARTER ENDED SEPTEMBER 30, 2001, COMMISSION FILE NUMBER 0-1957
UPTOWNER INNS, INC.
(Exact Name of Registrant as Specified in its Charter)
West Virginia 55-0457171
(State or Other Jurisdiction of (I.R.S. Employer
Incorporation or Organization) Identification Number)
1415 4th Avenue, Huntington, West Virginia 25701
(Address of Principal Executive Offices) (Zip Code)
Registrant's Telephone Number, including area code (304) 525-8162
Indicate by check mark whether the registrant:
(1) has filed all reports required to be filed by Section 13 or 15(d)
of the Securities Exchange Act of 1934 during the preceding 12 months (or
for such shorter period that the registrant was required to file such
reports), and,
(2) has been subject to such filing requirements for the past 90
days.
Yes X No
_______ ______
Indicate the number of Shares outstanding of each of the Issuer's classes
of Common Stock, as of the close of the period covered by this report.
Class Outstanding at September 30, 2001
______ _______________________________
Common Stock - $.50 par value 1,583,563 shares
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PART I: FINANCIAL INFORMATION
ITEM 1: FINANCIAL STATEMENTS
UPTOWNER INNS, INC. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEET
AT SEPTEMBER 30, 2001 and JUNE 30, 2001
ASSETS
September 30, June 30,
2001 2001
(Unaudited) (a)
Current Assets:
Cash $ 145,596 $ 186,912
Accounts and notes receivable 51,379 72,830
Inventories 7,847 7,715
Prepaid expenses 28,896 48,392
Property held for sale 327,811 327,811
Total current assets 561,529 643,660
Property, Plant and Equipment:
Land 1,529,252 1,519,252
Building and improvements 10,682,971 10,680,357
Furniture and equipment 2,765,296 2,761,410
Less accumulated
depreciation
and amortization 4,955,751 4,846,594
Property, plant and
equipment - net 10,021,768 10,114,425
Other Assets:
Deposits and other 208,287 141,837
Total Assets $ 10,791,584 $ 10,899,922
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UPTOWNER INNS, INC. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEET
AT SEPTEMBER 30, 2001 and JUNE 30, 2001
LIABILITIES AND STOCKHOLDERS' EQUITY
September 30, June 30,
2001 2001
(Unaudited) (a)
Current Liabilities:
Accounts payable $ 220,093 $ 232,588
Accrued liabilities 191,352 200,484
Taxes other than Federal
income taxes 339,245 313,480
Current portion of long-term
debt 1,408,700 1,400,385
Total current liabilities 2,159,390 2,146,937
Long-Term Liabilities:
Notes and mortgages payable 6,475,625 6,636,076
Total liabilities 8,635,015 8,783,013
Stockholders' Equity:
Common stock - par value
$.50 per share; authorized
5,000,000 shares; issued
1,583,563 shares 791,782 791,782
Additional paid-in capital 1,032,290 1,032,290
Retained earnings 332,497 292,837
Total stockholders' equity 2,156,569 2,116,909
Total Liabilities and
Stockholders' Equity $10,791,584 $10,899,922
(a) Financial information as of June 30, 2001 has been derived from the
audited, consolidated financial statements of the registrant.
The accompanying notes to the consolidated financial statements
are an integral part of these statements.
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UPTOWNER INNS, INC. AND SUBSIDIARY
CONSOLIDATED INCOME STATEMENT (UNAUDITED)
For the three months ended September 30, 2001 and 2000
2001 2000
Revenues:
Rooms $ 902,440 $ 1,002,953
Food and beverage 36,498 69,656
Telephone 7,315 15,484
Rents 54,337 54,403
Other 7,974 5,379
Total revenues 1,008,564 1,147,875
Costs and Expenses:
Operating Departments:
Cost of sales 39,862 60,958
Salaries and wages 242,807 258,413
Other 66,225 61,346
General and Administrative 61,739 85,029
Advertising 60,041 68,733
Utilities 66,117 67,364
Repairs and Maintenance 25,218 30,065
Interest 185,757 186,014
Taxes and licenses 93,686 104,864
Insurance 18,295 16,077
Depreciation and Amortization 109,157 104,903
Total costs and expenses 968,904 1,043,766
Operating income 39,660 104,109
Other Income:
Interest income - 59
Total other income - 59
Net Income before Income
Taxes 39,660 104,168
Income Taxes 0 0
Net Income $ 39,660 $ 104,168
Earnings per Share $ .03 $ .07
The accompanying notes to the consolidated financial statements
are an integral part of these statements.
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UPTOWNER INNS, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENT OF CASH FLOWS
(UNAUDITED)
For the three months ended September 30, 2001 and 2000
2001 2000
Cash Flows From Operating Activities:
Net income $ 39,660 $ 104,168
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization 109,157 104,903
(Increase) decrease in deposits (66,450) 3,616
(Increase) decrease in current assets:
Accounts receivable 21,451 (67,808)
Inventories (132) 8,713
Prepaid expenses 19,496 20,148
Increase (decrease) in current
liabilities:
Accounts payable (12,495) (129,566)
Accrued liabilities (9,132) 173
Taxes other than Federal income tax 25,765 19,433
Total adjustments 87,660 (40,388)
Net Cash Provided By Operating Activities $ 127,320 $ 63,780
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UPTOWNER INNS, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENT OF CASH FLOWS
(UNAUDITED)
For the three months ended September 30, 2001 and 2000
2001 2000
Cash Flows From Investing Activities:
Capital Expenditures $ (16,500) $ (57,030)
Net cash used in investing activities (16,500) (57,030)
Cash Flows From Financing Activities:
Loan proceeds 0 0
Payment on notes and mortgages (152,136) (97,105)
Net cash used in
financing activities (152,136) (97,105)
Net Increase (Decrease) in Cash
and Cash Equivalents (41,316) (90,355)
Cash and Cash Equivalents at Beginning of Year 186,912 348,064
Cash and Cash Equivalents at End of Period $ 145,596 $ 257,709
Supplemental Disclosures of Cash Flow Information:
Cash Paid During The Period For:
Interest $ 174,286 $ 184,819
The accompanying notes to the consolidated financial statements
are an integral part of these statements.
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UPTOWNER INNS, AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
September 30, 2001
1. BASIS OF PRESENTATION
The financial statements presented reflect Uptowner Inns, Inc. and its
consolidated subsidiary, Motel and Restaurant Supply.
The foregoing statements are unaudited; however, in the opinion of
management, all adjustments (comprising only normal recurring accruals)
necessary for a fair presentation of the financial statements have been
included. The results of operations for interim periods are not
necessarily indicative of the results that may be expected for a full
year or any other interim period. A summary of the Corporation's
significant accounting policies is set forth in Note 1 to the Consolidated
Financial Statements in the Corporation's Annual Report to shareholders
and Form 10-K for June 30, 2001.
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UPTOWNER INNS, AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
September 30, 2001
2. CONTINGENCY
None.
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UPTOWNER INNS, INC. AND SUBSIDIARY
ITEM 2: MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
FORWARD-LOOKING STATEMENTS
Certain matters disclosed herein may be deemed to be forward-looking
statements that involve risks and uncertainties, including the facilities
utilization, costs associated with maintaining the operations, liquidity
issues, and other risks. Actual strategies and results in future time
periods may differ materially from those currently expected. Such
forward-looking statements represent management's judgment as of the
current date. The Company disclaims, however, any intent of obligation
to update such forward-looking statements.
RESULTS OF OPERATION
Due to the decline in the Huntington market, room revenues decreased
10.2%. The entire hotel market fell during this quarter and continued to
fall after September 11. Much of this decline in the market specific to
the registrant was due to a Pepsi Company strike that generated a great
number of rooms during this same quarter in the previous year. The 47.6%
decrease in food and beverage is attributed to the elimination of the
Uptowner Inn restaurant facility in late August of 2000. The restaurant
facility had been losing money for several years and a decision was made
to close down the facility to help generate additional cash flow.
Expenses are down 7.2% overall due to the decreased occupancy. The
general and administrative decrease of 27.4% is primarily the result of
less legal and accounting fees due to the settlement of cases during the
year ended June 30, 2001.
LIQUIDITY
The liquidity, as measured by current assets divided by current
liabilities, has slightly decreased from .30 at June 30, 2001 to
..26 at September 30, 2001. This decline is a result of continued under-
utilization of the Uptowner Inn facility coupled with the costs necessary
to maintain the operation. The Holiday Inn property continues to generate
revenues that are sufficient to cash flow the Uptowner Inn facility.
Management is currently evaluating alternatives for the Uptowner Inn
facility, and expects to have a plan in place by the second quarter of the
fiscal year ending June 30, 2002.
CAPITAL RESOURCES
The registrant has no plans at this time for any material commitments
for capital expenditures.
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UPTOWNER INNS, INC. AND SUBSIDIARY
PART II: OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
a. Exhibits
None
b. The Company was not required to file Form 8-K for the quarter
ended September 30, 2001.
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SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the
Securities Exchange Act of 1934, the registrant has duly caused this
report to be signed on its behalf by the undersigned, thereunto duly
authorized.
(Registrant) UPTOWNER INNS, INC.
By /s/ Carl Midkiff,
CEO and Secretary
September 27, 2002
By /s/ David Robinson,
Treasurer
September 27, 2002
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