The financials for the locally based, New York Stock Exchange-traded firm for the second quarter which ended Aug. 1 are solid, but the company tells the Security and Exchange Commission it plans to take an estimated $1.2 million hit in the third quarter because it hasn't been able to sublease its former headquarters space Downtown.
Hughes was leasing 56,000 sf at the 16-story, 307,780-sf Wachovia Tower at 20 N. Orange Ave. Downtown until June when it moved four blocks away to its own $35-million, five-story, 225,000-sf Hughes Square on West Church Street.
Hughes was paying about $21 per sf at Wachovia Tower which was jointly purchased in January by New York Mets owner Fred Wilpon's Sterling American Property IV LP and Miami-based Continental Real Estate Cos. from Hanover Reinsurance Co. of Hanover, Germany for $30 million, as GlobeSt.com previously reported.
In his SEC filing, Hughes president and CEO Tom Morgan says the firm "expects to record an accounting charge of approximately five cents per diluted share for exiting our former headquarters offices because we have been unable to sublease the space at this time in the currently weak Orlando commercial real estate market."
Hughes posted second-quarter net sales of $815.1 million, up 5% over the $774.4 million recorded in second-quarter 2002. Net sales for the six-month period totaled $1.6 billion compared to $1.56 billion last year.
Net income for the quarter totaled $18.7 million versus $18.5 million in the comparable 2002 period. For the six-month period, net income totaled $30.5 million versus $30.9 million last year.
Morgan projects third-quarter ranges will show net sales of $835 million to $845 million, up 4% to 5%; net income of $17 million to $19 million, down 4% to 14%; and diluted earnings per share of 70 cents to 78 cents, a decrease of 7% to 17%.
Continue Reading for Free
Register and gain access to:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
