InnSuites Hospitality Trust reported Total Revenues of $13,216,000 for the 2017 Fiscal Year ended January 31, 2017 compared to Total Revenues of $11,617,000 for the 2016 Fiscal Year ended January 31, 2016, an increase of $1,599,000, or 13.7%.
During the first fiscal quarter ended April 30, 2017, IHT had Room Revenues of $3,755,000 compared with $3,275,000 for the first fiscal quarter ending April 30, 2016, an increase of $480,000 or 14.6%.
The following presentation of Adjusted EBITDA, a non-GAAP measure, is made to assist our investors in evaluating our operating performance. Adjusted EBITDA is defined as earnings before minority interest, interest expense, amortization of loan costs, interest income, income taxes, depreciation and amortization, and non-controlling interests in the Trust. We present Adjusted EBITDA because we believe these measurements (a) more accurately reflect the ongoing performance of our hotel assets and other investments, (b) provide more useful information to investors as indicators of our ability to meet our future debt payments and working capital requirements, and (c) provide an overall evaluation of our financial condition. Adjusted EBITDA does not represent cash generated from operating activities determined in accordance with GAAP and should not be considered as an alternative to (a) GAAP net income or loss as an indication of our financial performance or (b) GAAP cash flows from operating activities as a measure of our liquidity.
A reconciliation of Adjusted EBITDA to net (loss) income attributable to controlling interests for the fiscal years ended January 31, 2017 and 2016 follows:
|Twelve Months Ended January 31,|
|Net (loss) income attributable to controlling interests||$||(2,191,972||)||$||432,116|
|Depreciation from Continuing Operations||2,094,401||945,413|
|Interest expense from Continuing Operations||731,145||730,158|
|Taxes from Continuing Operations||(227,569||)||96,963|
|Interest income from Continuing Operations||(1,360||)||(14,416||)|
During FY 2016, the Trust sold a hotel resulting in a one-time $2.35 million gain. The Trust received a $228,000 income tax benefit for FY 2017 and incurred $97,000 of income tax expense for FY 2016. Decrease in income tax expense was due to our net loss and decreased sales of ownership interest in our properties.
Our IBC Hotels technology division reported a net loss of $1,190,000 for FY 2017 and a net loss of $288,000 for FY 2016 for both years due in part from expenses due to efforts to continue to accelerate growth in the IBC technology hotel services division, as we continue to make significant sales, marketing and technology investment in this segment.
Excluding one-time hotel gain, income tax effects and our investment in our IBC Hotels technology division, the Trust had a $1,366,000 Adjusted EBITDA for fiscal year 2017 and a $165,000 Adjusted EBITDA for fiscal year 2016, a difference of $1,201,000
On May 2, 2017, IBC announced an agreement with TrustYou, the world's largest guest feedback platform, to bring guest feedback management via its platform to IBC members. Through this integration, independent hotels and soft brands using the proprietary IBC hotel management platform will have free access to the TrustYou Stars Lite platform that captures and markets post-stay feedback from guests.
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