Chicago Tribune from Chicago, Illinois · Page 70

CHICAGO TRIBUNE, WEDNESDAY, MAY 24, Jflfi7 Section 3A - 5 OF 11 ' SHIP Since inception in 1946 Hilton has led the hotel industry. These years have witnessed the steady expansion of worldwide Hilton facilities. They have marked Hilton innovations which greatly improved service to the public and served as models for the hotel industry throughout the world. They have seen the establishment of the Carte Blanche credit card in which Hilton Hotels Corporation holds a 41 per cent interest. They have featured financial progress in sales, earnings, book value and benefits to shareholders. Marked progress of Hilton Hotels Corporation has continued since the spin-off of Hilton International Co. on December 1, 1964. Evidence is in the charts below which show that gross revenue and net profit from operations (as adjusted) have moved up steadily since that time. In 1966, gross revenue and net profit from operations increased 5 per cent and 66 per cent respectively over 1965. Dividends and Distributions Hilton has paid cash dividends on common stock in every year since formation of the Corporation in 1946, a total of $60,992,489. In addition, shareholders in 1964 received a tax-free distribution of one share of Hilton International for each two shares of Hilton Hotels stock. Since that time they have enjoyed substantial appreciation in their stockholdings of both companies. The aggregate market value of Hilton International common stock when spun off was $37,306,000 or approximately $21 per share. On May 9, 1967, the date of the merger of Hilton International and Trans World Airlines, Inc., the aggregate market value of Hilton International was $84,620,000 or $45.50 per share. Shaieholders Equity Growth of shareholders equity in Hilton Hotels Corporation over the past two decades is shown below. The chart of book value per share of common stock has been adjusted in all prior years for the fwo-for-one stock split in 1956 and the spin-off of I Iilton International Co. in 1964. The chart shows an increase of approximately 557 per cent in shareholders equity from $17,130,449 or $5.29 per share at the end of 1946 to $112,587,018 or $32.83 per share based upon the 3,429,366 shares outstanding at the close of 1966. An original share of Hilton common stock was offered by the underwriters in 1946 at $8.75, adjusted for the stock split in 1956. The closing price on the New York Stock Exchange on May 9, 1967 was $34,375. Repurchase of Stock Over the years, Hilton has retired the entire outstanding issues of its Preferred stock and has reacquired 1,109,739 shares of its common stock in these amounts. Preferred stock with a par value . $29,408,273 Common stock at an aggregate cost $23,541,040 All earnings now accrue to the benefit of common shareholders. Earned Surplus Hilton's retained earnings have grown since its beginning in 1946 to a total of $81,876,240. This is unmatched in the hotel industry. Gross Revenue Net Income from Operations Per Share of Common Stock Net Income from Operations Book Value Per Share of Common Stock 1946-1966 $6,674,000 $1.95 $32.83 11 $195,649,000 $28.28 $28.13 $23.04 $21.14 $18.44 mm mm mm $13.20 $183j900j6o0 I I $2,408,000 $10.96 I u I fic V, i $9.58 II l I f j T4T $7.55 MM I v V V n $5.29 1964 1965 1960 1962 1966 1964 1946 1948 1950 1952 1954 1956 1958 The above figures have been adjusted for the spin-off of Hilton International Co. in 1964 and the 2-for-l stock split in 1956. 196-. WUJ .uu Adjusted for Income taxes on a basts comparable to 1965 1964 1965 i-juu Adjusted (or Income taxes on a basis comparable to 1965 Expansion of the Hilton System in the U.S. Hilton is one of the major participants in the rapid expansion of travel and leisure time activities one of the important segments of the American economy. Spending for travel and recreation and a younger population with greater affluence and more free time will accelerate the expansion of many areas, including Hawaii in which Hilton has an important role. In addition to its popular Hilton Hawaiian Village, where construction of an 800-room addition was just started, Hilton recently opened The Hilton Lagoon Apartments, a 25-story building containing 235 luxury apartments, on the 20-acre grounds of the Hawaiian Village in Honolulu. The Corporation has opened The Hilton Hale Kaanapali, a resort hotel on the Island of Maui. The Kona Hilton, a 200-room hotel on the Island of Hawaii, is under construction and expected to open early in 1968. During 1966, Hilton opened The Saint Paul Hilton; exercised its option to repurchase The Beverly Hilton in Beverly Hills and started construction on a 185-room ad- dition. It bought the hotel and land of The Hilton in Hartford; increased its ownership in The San Francisco Hilton from 50 to 100; purchased The May fair-Lennox Inn at St. Louis Airport, changing its name to The Hilton Inn. In addition, The Dallas Hilton Inn was opened in April-ofthis year, construction is proceeding on the"200-room Cape Kennedy Hilton at Cape Canaveral, and a440-room Indianapolis Hilton is under development, all of which will be managed by the Corporation. At the same time, a program of franchising under the Statler Hilton name is being aggressively pursued. Results for the first four months of 1967 indicate that our progress is continuing. Revenues increased 1 over the same period in 1966, while earnings from operations increased 20. Buoyed by the momentum of 21 years of growth, by the spirit prevailing within its organization, and by the dynamic expansion of the travel industry of which it is an integral part, Hilton will press forward toward new horizons. PRESIDENT o-JBHHBfe! ; - Jill UmmKmMM- hartforo 4? TCI 1 afe ' -iffBiFwXSBS1" 'DURHAM san franco -J rWmWmm. IffiliCSI- Atlanta sr mnnu- WWSfSimSsfSai -COVINGTON LOS ANGEL, J I , iHP ST. LOUIS . HONOLULU SAN DIEGO 1 if Igjf tmfNEWORLEANS 1! t MAUI 'TUCSON : ' M'WiiMlWMm HOUSTON mF f'MIAMI BEACH 'I! I llilllli DALLAS -CLEARWATER I tKONA i'iiiiiiii X- PASO llilllli i UNDER CONSTRUCTION -Mmmmmmfk A FRANCHISE HOTEL CHAIRMAN Hilton Hotels Corporation Executive Offices: 720 South Michigan Avenue, Chicago, Illinois 60605