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InnSuites Hospitality Trust(IHT) - 2025 Q2 - Quarterly Report
IHTInnSuites Hospitality Trust(IHT)2024-09-16 21:26

Financial Performance - Total revenue for the quarter ended July 31, 2024, was 4,134,362,anincreaseof5.34,134,362, an increase of 5.3% compared to 3,927,084 for the same period in 2023[5]. - Consolidated net loss for the quarter was (331,387),asignificantdeclinefromanetincomeof(331,387), a significant decline from a net income of 531,825 in the same quarter last year[5]. - The Trust reported a net income of 245,661forthesixmonthsendedJuly31,2023,comparedtoanetlossof245,661 for the six months ended July 31, 2023, compared to a net loss of 331,387 for the same period in 2024, indicating a significant decline in performance[9]. - Total revenues for the six months ended July 31, 2024, were approximately 4.13million,anincreaseof54.13 million, an increase of 5% from 3.93 million for the same period in 2023[123]. - Consolidated net loss for the six months ended July 31, 2024, was approximately 331,000,adecreaseofapproximately331,000, a decrease of approximately 863,000 compared to a net income of approximately 532,000forthesameperiodin2023[126].OperatingExpenses−Operatingexpensesforthequarterwere532,000 for the same period in 2023[126]. Operating Expenses - Operating expenses for the quarter were 4,249,872, up 9.0% from 3,896,643intheprioryear,leadingtoanoperatinglossof3,896,643 in the prior year, leading to an operating loss of (115,510) compared to a profit of 30,441in2023[5].−TotaloperatingexpensesforthesixmonthsendedJuly31,2024,wereapproximately30,441 in 2023[5]. - Total operating expenses for the six months ended July 31, 2024, were approximately 4.25 million, an increase of 9% from 3.90millionforthesameperiodin2023[129].−TotalexpensesnetofinterestexpenseforthethreemonthsendedJuly31,2024,wereapproximately3.90 million for the same period in 2023[129]. - Total expenses net of interest expense for the three months ended July 31, 2024, were approximately 2.13 million, reflecting a 14% increase from 1.87millionforthesameperiodin2023[138].RevenueSources−Roomrevenueforthequarterwas1.87 million for the same period in 2023[138]. Revenue Sources - Room revenue for the quarter was 4,008,662, up 3.7% from 3,864,842inthepreviousyear[5].−TheTrust′sprincipalsourceofcashisderivedfromhotelroomreservationsandmanagementfeesfromitsproperties[17].−TheTrust′srevenueisprimarilyderivedfromroomrentals,foodandbeveragesales,andmanagementfees,withrevenuesrecognizedasservicesarerendered[31].CashFlowandLiquidity−TheTrust′scashflowsfromoperatingactivitiesresultedinanetcashusedof3,864,842 in the previous year[5]. - The Trust's principal source of cash is derived from hotel room reservations and management fees from its properties[17]. - The Trust's revenue is primarily derived from room rentals, food and beverage sales, and management fees, with revenues recognized as services are rendered[31]. Cash Flow and Liquidity - The Trust's cash flows from operating activities resulted in a net cash used of 504,012 for the six months ended July 31, 2024, compared to a net cash provided of 1,438,884intheprioryear[11].−AsofJuly31,2024,theTrusthadcashandcashequivalentsofapproximately1,438,884 in the prior year[11]. - As of July 31, 2024, the Trust had cash and cash equivalents of approximately 418,033, a significant decrease from 2,398,884attheendofJuly2023[11].−TheTrust′sliquidityisprimarilydependentonrevenuesfromhoteloperationsandmanagementfees,withpotentialfuturecashfromassetsales[17].InvestmentsandStrategicFocus−TheTrust′sinvestmentsinUniGenincludea2,398,884 at the end of July 2023[11]. - The Trust's liquidity is primarily dependent on revenues from hotel operations and management fees, with potential future cash from asset sales[17]. Investments and Strategic Focus - The Trust's investments in UniGen include a 1 million convertible debenture and approximately 668,750incommonstock,indicatingastrategicfocusondiversification[12].−TheTrusthasinvestedapproximately668,750 in common stock, indicating a strategic focus on diversification[12]. - The Trust has invested approximately 1 million in a 6% convertible debenture in UniGen Power Inc. and holds about 668,750inUniGen′scommonstock[12].−TheTrustplanstosellitsremainingtwohotelproperties,withanestimatedmarketaskingpriceof668,750 in UniGen's common stock[12]. - The Trust plans to sell its remaining two hotel properties, with an estimated market asking price of 9.5 million for the Albuquerque Hotel and 18.5millionfortheTucsonHotel,totaling18.5 million for the Tucson Hotel, totaling 28 million[174]. Shareholder Information - The weighted average number of shares outstanding decreased to 8,761,505 from 9,039,730 year-over-year[5]. - The net loss per share for the quarter was (0.06),comparedtoearningsof(0.06), compared to earnings of 0.03 per share in the same quarter last year[5]. - Dividends paid during the six months ended July 31, 2024, totaled 90,237,slightlyincreasingfrom90,237, slightly increasing from 90,062 in the same period of 2023[11]. Operational Adjustments - The Trust's management has changed auditors and transfer agents during the second fiscal quarter, reflecting ongoing operational adjustments[21]. - The Trust's operations are vulnerable to risks such as travel disruptions and economic downturns, which could significantly impact revenues and profits[24]. - The Trust's operations are subject to seasonality, with the Tucson Hotel experiencing the highest occupancy in the first fiscal quarter[179]. Market Outlook - The Trust anticipates steady leisure travel demand and limited new hotel supply, expecting continued revenue growth in Fiscal Year 2025[146]. - The market demand for electricity in the U.S. is projected to potentially double over the next five years due to increased demand from electric vehicles and artificial intelligence[186].