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Thailand: RHC reports on operation performance 2005(Thai Press Reports Via Thomson Dialog NewsEdge)Section: SET Filing - Rajadamri Hotel Public Company Limited, hereby submit an audited financial statement as at December 31, 2005 together with explanation hereunder regarding changes in operating results. Revenues The total consolidated revenues of the Company in 2005 were Baht 1,000.14 million which increased Baht 8.25 million or 0.83 % from 2004. Major revenues were derived from the followings: Room Revenues: The room revenue in 2005 was Baht 445.57 million, a Baht 10.33 million or 2.27% reduction from the comparable period in 2004 primarily because of 153 guest rooms renovation (out of 356 rooms) in order to upgrade our room to the international standard. The renovation was taken place towards the end of the first quarter and finished in the beginning of August 2005. As a result, the occupancy level has decreased from 71.39% in 2004 to 63.38% in 2005. However, the hotel was able to increase the average room rate in this year by approximately 10.24% from 2004. Food and Beverage Revenues: The partial close of the guest rooms also disturbed the food & beverage guests resulting in the 4.25% reduction in food & beverage revenues. Share of profit from investment in related company: In 2005, the Company's shares of profit from 26% investment in Mae Rim Terrace Resort Co., Ltd., the owner of Four Seasons Resort Chiang Mai increased 22.92% to Baht 15.94 million in 2005. The room revenue of Four Seasons Resort Chiang Mai has increased in term of both the occupancy level and room rate in 2005. The gross margin and the net profit of the company in 2005 has increased as well which reflect to the improvement in the operating performance of Four Seasons Resort Chiang Mai. Other revenues: Other income in 2005 was Baht 52.17 million because the company has earned the contributions income from Four Seasons Group into entering to Hotel Advisory Agreement which will expire on 25 June 2013. This transaction did not incur in 2004. Cost & Expenses Cost of sales & selling, administrative expenses: Gross margin (after deduction of depreciation) increase slightly from 52.56% in 2004 to 54.08% in 2005. Selling & administrative expense as a percentage of total revenues in 2005 were decreased slightly from 28.42% in 2004 to 27.46% in 2005 mainly because the company generally has certain fixed cost which does not reduce in accordance with the growth in revenues. Net Earnings Because of the increase in revenues and the slightly decrease in cost as a percentage of revenue, the Company's net profit in 2005 increase by approximately 13.71% from Baht 168.57 million (Baht 3.75 per share) in 2004 to Baht 191.68 million (Baht 4.26 per share) in 2005. (16 February 2006) |