Orient-Express Hotels Ltd. (OEH), Monday said it expects a wider first-quarter loss from a year ago, hurt by an expected decline in revenues. The company also anticipates a decline in first-quarter earnings from unconsolidated companies from the same quarter last year. Separately, Orient-Express Hotels announced its plan to make a public offering of its common stock.
The Hamilton, Bermuda based company expects first-quarter net loss to widen to $14.6 million from $4.3 million in the same quarter a year ago and also expects a decline in first-quarter earnings from unconsolidated companies to $1.6 million from $5.2 million in the first quarter of the previous year.
On average, five analysts polled by Thomson Reuters currently expect first-quarter net loss of $0.16 per share. Analysts estimate typically excludes special items such as one-time charges or gains.
Orient-Express Hotels expects first-quarter EBITDA decrease to $1.3 million from $16.4 million in the first quarter of the previous year, negatively impacted by non-cash impairment charges as well as non-recurring items. The company expects to record impairment charges of $7.0 million for the first quarter.
The company also expects first quarter revenues to decline to $89.4 million from $114.7 million a year ago, lower than the analysts' revenue estimate of $94.36 million.
The company said its local currency same store revenue per available room for the first quarter would also decrease 18% from the year-ago period. Same store RevPAR is a comparison based on the operations of the same units in each period and, among other things would exclude the effect of any acquisitions or major refurbishments.
Further, Orient-Express Hotels plans to make a public offering of 15 million shares of newly issued Class A common shares, par value $.01 per share, stating that the shares being offered would represent approximately 30% of its outstanding Class A common shares. The offering is made pursuant to its effective shelf registration statement previously filed with the Securities and Exchange Commission.
Orient-Express Hotels would grant the underwriters a 30-day option to purchase up to an additional 2.25 million shares to cover over-allotments, if any and expects to use net proceeds from the offering for reducing debt and general corporate purposes. Deutsche Bank Securities Inc. would be the sole bookrunner for the offering.
OEH is currently trading at $7.00, down $1.87 or 21.08%, on a volume of 1.240 million shares on the NYSE.
For comments and feedback: editorial@rttnews.com