Host Marriott's earnings rise in second quarter

July 09, 1996|By BLOOMBERG BUSINESS NEWS

BETHESDA -- Host Marriott Services Corp. said yesterday that it had a profitable second quarter because of increased revenue from its airport concessions.

The provider of food, beverages and retail concessions at airports and toll roads said it had second-quarter net income of $3.3 million, or 9 cents a share, compared with a pro forma loss of $400,000, or a penny a share, in the year-ago quarter.

Revenue rose 12 percent to $290.3 million from $258.9 million.

Separately, the company said it agreed to lease food and beverage facilities at the Grapevine Mills Corp. Mall in Texas, which is expected to open in the fall of 1997.

Terms weren't disclosed.

Historically, the Bethesda-based company has reported losses for the first and second quarters as most of its business is conducted during the busier summer travel months.

The company was spun off from Host Marriott Corp. in December.

Host Marriott shares closed unchanged yesterday at $7.125.

Pub Date: 7/09/96

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