TORONTO Four Seasons Hotels & Resorts posted strong fourth-quarter and year-end earnings.
Net earnings* for fourth quarter 2000 increased 13.6% to $25.16 million or $0.72 per share versus net earnings of $22.15 million or $0.64 per share for fourth-quarter 1999. Full-year earnings of $67.39 million represents a 19.2% increase in net earnings over 1999.
The key corporate challenge for the year 2000 was the increase of our income tax rate to normalized levels, said Douglas Ludwig, executive vp/CFO. That resulted in a $21.3 million increase in our income tax cost. This challenge was met with a combination of very strong internal growth, important new unit growth, such as our Paris and London hotels, and additional contributions from our residential diversification. Ludwig said these factors allowed the company to achieve an increase in its hotel management EBITDA of 41% with overall EBITDA increasing 43% for the full year.
Although there is much concern in the market about the economic deceleration in the U.S., we believe Four Seasons is well positioned for growth despite these economic challenges, said Ludwig. The high-end customer has shown in prior cycles that it does not change its travel patterns significantly in a down turn. Secondly, unit growth is a key element to sustain growth despite the economic conditions.
(*All amounts are converted from Canadian dollars based on a rate of 0.6537 per U.S. dollar/ Feb. 15, 2001) (2/19/01) Stefani C. O Connor