• | RevPAR from comparable company operated hotels increased 9.5 percent year-over-year in the fourth quarter and 6.9 percent in 2014. Comparable systemwide RevPAR increased 8.1 percent year-over-year in the fourth quarter and 6.0 percent in 2014. |
• | ADR and Occupancy from comparable company operated hotels improved 4.5 percent and 260 bps year-over-year in the fourth quarter and 3.3% and 220 bps in 2014, respectively |
• | Adjusted net loss per share improved meaningfully to $0.19 versus $0.26 year-over-year in the fourth quarter and to $0.13 versus $0.34 in 2014 |
• | On a consolidated basis, Adjusted EBITDA increased $0.5 million year-over-year in the fourth quarter and $2.9 million, or 24%, in 2014 |
• | Acquired an adaptive reuse property located at Baltimore’s Inner Harbor; expected to open in summer 2015 as the company’s first Hotel RL establishing an East Coast presence for the RLHC brands |
• | Completed a comprehensive transaction to accelerate the execution of its national growth strategy including the sale of a minority stake in 12 hotels and refinancing of all secured debt |
• | Sold Bellevue and Wenatchee properties for $39.5 million in aggregate proceeds |
• | Red Lion Hotel Wenatchee, 149 rooms |
• | Red Lion Hotel Bellevue, 181 rooms |
• | Red Lion Hotel Yakima Center, Wash. - formerly owned |
• | Red Lion Inn & Suites Kennewick, Wash. - new franchise owner |
• | Red Lion Hotel & Conference Center - Kelso/Longview, Wash. - formerly owned |
• | Red Lion Inn & Suites Tucson North - Foothills, Ariz. - new location |
• | Red Lion Hotel Oakland International Airport, Calif. - franchise renewal |
• | Red Lion Hotel Columbia Center, Wash. - formerly owned |
• | Red Lion Hotel Canyon Springs, Idaho - formerly owned |
• | Red Lion Hotel Salem, Ore. - recommitment by current owner |
• | Red Lion Hotel & Conference Center Seattle/Renton, Wash. - new location |
• | Red Lion Inn & Suites Detroit Airport, Mich. - new location |
• | Red Lion Inn & Suites Federal Way, Wash. - new location |
• | Red Lion Hotel Pocatello, Idaho - formerly owned |
• | Red Lion Inn & Suites Fort Collins, Colo. - new location |
• | Red Lion Hotel Cincinnati, Ohio - new location scheduled to open in the first quarter of 2015 |
• | Red Lion Ridgewater Inn and Suites Polson, Mont. - new location under construction |
• | 2015 RevPAR for comparable company operated hotels is expected to increase 3 to 6 percent over 2014 |
• | Capital expenditures, including those associated with the 12 hotel joint venture portfolio and its loan, are expected to be between $30 and $35 million |
• | The company expects to add between 20 and 30 hotels to the RLHC systemwide portfolio |
Pam Scott, VP, Corporate Communications |
(509) 777-6393 (Direct) |
(509) 570-4610 (Cell) |
Pam.Scott@redlion.com |
Red Lion Hotels Corporation | ||||||||||||||
Consolidated Statements of Comprehensive Income (Loss) | ||||||||||||||
(unaudited) | ||||||||||||||
($ in thousands, except footnotes and per share amounts) | ||||||||||||||
Three Months Ended December 31, | ||||||||||||||
2014 | 2013 | $ Change | % Change | |||||||||||
Revenue: | ||||||||||||||
Hotels | $ | 24,534 | $ | 25,888 | (1,354 | ) | (5.2 | ) | ||||||
Franchise | 1,575 | 1,561 | 14 | 0.9 | ||||||||||
Entertainment | 3,165 | 2,666 | 499 | 18.7 | ||||||||||
Other | 12 | 86 | (74 | ) | (86.0 | ) | ||||||||
Total revenues | 29,286 | 30,201 | (915 | ) | (3.0 | ) | ||||||||
Operating expenses: | ||||||||||||||
Hotels | 21,414 | 23,499 | (2,085 | ) | (8.9 | ) | ||||||||
Franchise | 1,745 | 1,381 | 364 | 26.4 | ||||||||||
Entertainment | 2,839 | 2,631 | 208 | 7.9 | ||||||||||
Other | 82 | 164 | (82 | ) | (50.0 | ) | ||||||||
Depreciation and amortization | 3,196 | 3,270 | (74 | ) | (2.3 | ) | ||||||||
Hotel facility and land lease | 1,718 | 1,150 | 568 | 49.4 | ||||||||||
Asset impairment | — | 7,785 | (7,785 | ) | n/m | |||||||||
Loss (gain) on asset dispositions, net | (568 | ) | (92 | ) | (476 | ) | (517.4 | ) | ||||||
General and administrative expenses | 2,275 | 1,445 | 830 | 57.4 | ||||||||||
Total operating expenses | 32,701 | 41,233 | (8,532 | ) | (20.7 | ) | ||||||||
Operating income (loss) | (3,415 | ) | (11,032 | ) | 7,617 | 69.0 | ||||||||
Other income (expense): | ||||||||||||||
Interest expense | (1,138 | ) | (1,235 | ) | 97 | 7.9 | ||||||||
Other income, net | 135 | 73 | 62 | 84.9 | ||||||||||
Income (loss) before taxes | (4,418 | ) | (12,194 | ) | 7,776 | 63.8 | ||||||||
Income tax expense (benefit) | — | 736 | (736 | ) | n/m | |||||||||
Net income (loss) from continuing operations | (4,418 | ) | (12,930 | ) | 8,512 | 65.8 | ||||||||
Discontinued operations (1) | ||||||||||||||
Income (loss) from discontinued business units, net of income tax (benefit) expense of $0, and $66, respectively | — | 325 | (325 | ) | n/m | |||||||||
Loss on disposal and impairment of the assets of the discontinued business units, net of income tax (benefit) expense of $0 and $0, respectively | — | (1,353 | ) | 1,353 | n/m | |||||||||
Net income (loss) from discontinued operations | — | (1,028 | ) | 1,028 | n/m | |||||||||
Net income (loss) | (4,418 | ) | (13,958 | ) | 9,540 | 68.3 | ||||||||
Comprehensive income (loss) | ||||||||||||||
Unrealized gains (losses) on cash flow hedge, net of tax | — | 169 | (169 | ) | n/m | |||||||||
Comprehensive income (loss) | $ | (4,418 | ) | $ | (13,789 | ) | 9,371 | 68.0 | ||||||
Earnings per share - basic and diluted | ||||||||||||||
Net income (loss) from continuing operations | $ | (0.22 | ) | $ | (0.66 | ) | ||||||||
Net income (loss) from discontinued operations | $ | — | $ | (0.05 | ) | |||||||||
Net income (loss) | $ | (0.22 | ) | $ | (0.71 | ) | ||||||||
Weighted average shares - basic | 19,846 | 19,684 | ||||||||||||
Weighted average shares - diluted | 19,846 | 19,684 | ||||||||||||
Non-GAAP Financial Measures: | ||||||||||||||
EBITDA (2) | $ | (84 | ) | $ | (8,717 | ) | $ | 8,633 | 99.0 | % | ||||
Adjusted EBITDA (2) | $ | 547 | $ | 96 | $ | 451 | (469.8 | )% | ||||||
Adjusted net income (loss)(2) | (3,787 | ) | (5,145 | ) | 1,358 | 26.4 | % | |||||||
(1) Discontinued operations includes a hotel in Eugene, Oregon that ceased operations in first quarter 2014. | ||||||||||||||
(2) The definitions of "EBITDA", "Adjusted EBITDA" and Adjusted net income (loss) and how those measures relate to net income (loss) are discussed further in this release under Non-GAAP Financial Measures. |
Red Lion Hotels Corporation | ||||||||||||||
Consolidated Statements of Comprehensive Income (Loss) | ||||||||||||||
(unaudited) | ||||||||||||||
($ in thousands, except footnotes and per share amounts) | ||||||||||||||
Year Ended December 31, | ||||||||||||||
2014 | 2013 | $ Change | % Change | |||||||||||
Revenue: | ||||||||||||||
Hotels | $ | 118,616 | $ | 120,391 | (1,775 | ) | (1.5 | ) | ||||||
Franchise | 9,618 | 7,136 | 2,482 | 34.8 | ||||||||||
Entertainment | 17,115 | 9,439 | 7,676 | 81.3 | ||||||||||
Other | 77 | 341 | (264 | ) | (77.4 | ) | ||||||||
Total revenues | 145,426 | 137,307 | 8,119 | 5.9 | ||||||||||
Operating expenses: | ||||||||||||||
Hotels | 94,241 | 97,831 | (3,590 | ) | (3.7 | ) | ||||||||
Franchise | 7,004 | 6,555 | 449 | 6.8 | ||||||||||
Entertainment | 14,785 | 9,189 | 5,596 | 60.9 | ||||||||||
Other | 318 | 535 | (217 | ) | (40.6 | ) | ||||||||
Depreciation and amortization | 12,762 | 13,960 | (1,198 | ) | (8.6 | ) | ||||||||
Hotel facility and land lease | 5,210 | 4,464 | 746 | 16.7 | ||||||||||
Asset impairment | — | 7,785 | (7,785 | ) | n/m | |||||||||
Loss (gain) on asset dispositions, net | (4,006 | ) | (112 | ) | (3,894 | ) | n/m | |||||||
General and administrative expenses | 8,353 | 7,945 | 408 | 5.1 | ||||||||||
Total operating expenses | 138,667 | 148,152 | (9,485 | ) | (6.4 | ) | ||||||||
Operating income (loss) | 6,759 | (10,845 | ) | 17,604 | 162.3 | |||||||||
Other income (expense): | ||||||||||||||
Interest expense | (4,575 | ) | (5,516 | ) | 941 | 17.1 | ||||||||
Other income, net | 339 | 474 | (135 | ) | (28.5 | ) | ||||||||
Income (loss) before taxes | 2,523 | (15,887 | ) | 18,410 | 115.9 | |||||||||
Income tax expense (benefit) | 31 | (817 | ) | 848 | 103.8 | |||||||||
Net income (loss) from continuing operations | 2,492 | (15,070 | ) | 17,562 | 116.5 | |||||||||
Discontinued operations (1) | ||||||||||||||
Income (loss) from discontinued business units, net of income tax (benefit) expense of $0 and $0, respectively | (187 | ) | (1,204 | ) | 1,017 | 84.5 | ||||||||
Loss on disposal and impairment of the assets of the discontinued business units, net of income tax (benefit) expense of $0 and $0, respectively | (2 | ) | (773 | ) | 771 | 99.7 | ||||||||
Net income (loss) from discontinued operations | (189 | ) | (1,977 | ) | 1,788 | 90.4 | ||||||||
Net income (loss) | 2,303 | (17,047 | ) | 19,350 | 113.5 | |||||||||
Comprehensive income (loss) | ||||||||||||||
Unrealized gains (losses) on cash flow hedge, net of tax | (44 | ) | (159 | ) | 115 | 72.3 | ||||||||
Comprehensive income (loss) | $ | 2,259 | $ | (17,206 | ) | 19,465 | 113.1 | |||||||
Earnings per share - basic and diluted | ||||||||||||||
Net income (loss) from continuing operations | $ | 0.13 | $ | (0.77 | ) | |||||||||
Net income (loss) from discontinued operations | $ | (0.01 | ) | $ | (0.10 | ) | ||||||||
Net income (loss) | $ | 0.12 | $ | (0.87 | ) | |||||||||
Weighted average shares - basic | 19,785 | 19,575 | ||||||||||||
Weighted average shares - diluted | 19,891 | 19,575 | ||||||||||||
Non-GAAP Financial Measures: | ||||||||||||||
EBITDA (2) | $ | 19,671 | $ | 1,612 | $ | 18,059 | 1,120.3 | % | ||||||
Adjusted EBITDA (2) | $ | 14,875 | $ | 11,956 | $ | 2,919 | 24.4 | % | ||||||
Adjusted net income (loss)(2) | (2,493 | ) | (6,703 | ) | 4,210 | (62.8 | )% | |||||||
(1) Discontinued operations includes the following: a commercial mall in Kalispell, Montana that was sold in first quarter 2013; a catering contract in Yakima, Washington that was terminated in first quarter 2013; a hotel in Medford, Oregon that was sold in third quarter 2013; and a hotel in Eugene, Oregon that ceased operations in first quarter 2014. | ||||||||||||||
(2) The definitions of "EBITDA", "Adjusted EBITDA" and Adjusted net income (loss) and how those measures relate to net income (loss) are discussed further in this release under Non-GAAP Financial Measures. |
Red Lion Hotels Corporation | ||||||||
Consolidated Balance Sheets | ||||||||
(unaudited) | ||||||||
($ in thousands, except per share data) | ||||||||
December 31, 2014 | December 31, 2013 | |||||||
(In thousands, except share data) | ||||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 5,126 | $ | 13,058 | ||||
Restricted cash | 225 | — | ||||||
Accounts receivable, net | 6,752 | 6,283 | ||||||
Notes receivable | 2,944 | 672 | ||||||
Inventories | 1,013 | 1,386 | ||||||
Prepaid expenses and other | 3,671 | 3,266 | ||||||
Deferred income taxes | — | 1,034 | ||||||
Assets held for sale | 21,173 | 18,346 | ||||||
Total current assets | 40,904 | 44,045 | ||||||
Property and equipment, net | 160,410 | 166,356 | ||||||
Goodwill | 8,512 | 8,512 | ||||||
Intangible assets, net | 7,012 | 6,992 | ||||||
Notes receivable, long term | 2,340 | 4,423 | ||||||
Other assets, net | 4,176 | 4,298 | ||||||
Total assets | $ | 223,354 | $ | 234,626 | ||||
LIABILITIES | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 2,952 | $ | 4,763 | ||||
Accrued payroll and related benefits | 4,567 | 2,786 | ||||||
Other accrued entertainment expenses | 5,625 | 4,418 | ||||||
Other accrued expenses | 2,547 | 4,271 | ||||||
Deferred income taxes | 2,778 | — | ||||||
Long-term debt, due within one year | — | 3,000 | ||||||
Total current liabilities | 18,469 | 19,238 | ||||||
Long-term debt, due after one year, net of discount | 30,200 | 40,058 | ||||||
Deferred income | 2,988 | 3,455 | ||||||
Deferred income taxes | 35 | 3,841 | ||||||
Debentures due Red Lion Hotels Capital Trust | 30,825 | 30,825 | ||||||
Total liabilities | 82,517 | 97,417 | ||||||
Commitments and contingencies | ||||||||
STOCKHOLDERS’ EQUITY | ||||||||
Preferred stock- 5,000,000 shares authorized; $0.01 par value; no shares issued or outstanding | — | — | ||||||
Common stock- 50,000,000 shares authorized; $0.01 par value; 19,846,508 and 19,687,232 shares issued and outstanding | 198 | 197 | ||||||
Additional paid-in capital, common stock | 153,671 | 152,303 | ||||||
Accumulated other comprehensive income (loss), net of tax | (203 | ) | (159 | ) | ||||
Retained earnings (accumulated deficit) | (12,829 | ) | (15,132 | ) | ||||
Total stockholders’ equity | 140,837 | 137,209 | ||||||
Total liabilities and stockholders’ equity | $ | 223,354 | $ | 234,626 |
Red Lion Hotels Corporation | |||||||
Additional Hotel Statistics | |||||||
(unaudited) | |||||||
System-wide Hotels as of December 31, 2014 | |||||||
Meeting Space | |||||||
Hotels | Rooms | (sq. ft.) | |||||
Company operated hotels | 19 | 3,887 | 177,250 | ||||
Franchised hotels | 34 | 4,677 | 244,072 | ||||
Leo Hotel Collection | 2 | 3,256 | 241,000 | ||||
Total systemwide | 55 | 11,820 | 662,322 |
Comparable Hotel Statistics from Continuing Operations (1) | ||||||||||||||||||||||
Three Months Ended December 31, 2014 | Three Months Ended December 31, 2013 | |||||||||||||||||||||
Average Occupancy(2) | ADR (3) | RevPAR (4) | Average Occupancy(2) | ADR (3) | RevPAR (4) | |||||||||||||||||
Company operated hotels | 58.5 | % | $ | 85.21 | $ | 49.85 | 55.9 | % | $ | 81.54 | $ | 45.54 | ||||||||||
Franchised hotels | 44.0 | % | $ | 78.90 | $ | 34.69 | 42.3 | % | $ | 77.30 | $ | 32.72 | ||||||||||
Total systemwide | 51.8 | % | $ | 82.72 | $ | 42.82 | 49.6 | % | $ | 79.86 | $ | 39.60 | ||||||||||
Change from prior comparative period: | ||||||||||||||||||||||
Company operated hotels | 260 | bps | 4.5 | % | 9.5 | % | ||||||||||||||||
Franchised hotels | 170 | bps | 2.1 | % | 6.0 | % | ||||||||||||||||
Total system-wide | 220 | bps | 3.6 | % | 8.1 | % | ||||||||||||||||
Year Ended December 31, 2014 | Year Ended December 31, 2013 | |||||||||||||||||||||
Average Occupancy(2) | ADR (3) | RevPAR (4) | Average Occupancy(2) | ADR (3) | RevPAR (4) | |||||||||||||||||
Company operated hotels | 66.6 | % | $ | 91.26 | $ | 60.80 | 64.4 | % | $ | 88.35 | $ | 56.87 | ||||||||||
Franchised hotels | 51.4 | % | $ | 82.30 | $ | 42.33 | 50.9 | % | $ | 79.54 | $ | 40.52 | ||||||||||
Total systemwide | 59.6 | % | $ | 87.68 | $ | 52.26 | 58.1 | % | $ | 84.77 | $ | 49.29 | ||||||||||
Change from prior comparative period: | ||||||||||||||||||||||
Company operated hotels | 220 | bps | 3.3 | % | 6.9 | % | ||||||||||||||||
Franchised hotels | 50 | bps | 3.5 | % | 4.5 | % | ||||||||||||||||
Total systemwide | 150 | bps | 3.4 | % | 6.0 | % |
(1 | ) | Includes all managed and franchised hotels and excludes hotels classified as discontinued operations. This also excludes the two properties under the Leo Hotel Collection Brand. The Missoula, Pendleton, Yakima, Kennewick, Kelso, Canyon Springs and Pocatello properties have been excluded from the company operated hotel statistics and included in the franchise statistics as we sold those previously owned properties during 2014 and 2013 and maintained franchise agreements on those properties. | ||||||||||||
(2 | ) | Average occupancy represents total paid rooms divided by total available rooms. Total available rooms represents the number of rooms available multiplied by the number of days in the reported period and includes rooms taken out of service for renovation. | ||||||||||||
(3 | ) | Average daily rate ("ADR") represents total room revenues divided by the total number of paid rooms occupied by hotel guests. | ||||||||||||
(4 | ) | Revenue per available room ("RevPAR") represents total room and related revenues divided by total available rooms. |
Red Lion Hotels Corporation | ||||||||||||||||
Comparable Operating Results and Data From Continuing Operations | ||||||||||||||||
(unaudited) | ||||||||||||||||
($ in thousands) | ||||||||||||||||
Certain operating results for the periods included in this report are shown on a comparable hotel basis. Comparable hotels is defined as properties that are operated by the company and excludes the results of discontinued operations and sold properties. Discontinued operations include the following: a catering contract in Yakima, Washington that was terminated in first quarter 2013; a hotel in Medford, Oregon that was sold in third quarter 2013; and a hotel in Eugene, Oregon that ceased operations in first quarter 2014. Sold properties include the following: the Missoula property, which was sold in February 2013; the Pendleton property, which was sold in April 2013; the Yakima property, which was sold in April 2014; the Kelso and Kennewick properties, which were sold in May 2014; the Canyon Springs property, which was sold in June 2014; and the Pocatello property which was sold in October 2014. We utilize these comparable measures because management finds them a useful tool to perform more meaningful comparisons of past, present and future operating results and as a means to evaluate the results of core, ongoing operations. We believe they are a complement to reported operating results. Comparable operating results are not intended to represent reported operating results defined by generally accepted accounting principles in the United States ("GAAP"), and such information should not be considered as an alternative to reported information or any other measure of performance prescribed by GAAP. | ||||||||||||||||
Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Hotel revenue from continuing operations | $ | 24,534 | $ | 25,888 | $ | 118,616 | $ | 120,391 | ||||||||
less: hotel revenue from sold properties | (101 | ) | (3,119 | ) | (6,116 | ) | (14,752 | ) | ||||||||
Comparable total hotel revenue | $ | 24,433 | $ | 22,769 | $ | 112,500 | $ | 105,639 | ||||||||
Hotel operating expenses from continuing operations | $ | 21,414 | $ | 23,498 | $ | 94,241 | $ | 97,831 | ||||||||
less: hotel operating expenses from sold properties | (144 | ) | (2,870 | ) | (5,714 | ) | (12,571 | ) | ||||||||
Comparable hotel operating expenses | $ | 21,270 | $ | 20,628 | $ | 88,527 | $ | 85,260 | ||||||||
Hotel direct operating margin from continuing operations | $ | 3,120 | $ | 2,390 | $ | 24,375 | $ | 22,560 | ||||||||
less: total hotel direct operation margin from sold properties | 43 | (249 | ) | (402 | ) | (2,181 | ) | |||||||||
Comparable hotel direct margin | $ | 3,163 | $ | 2,141 | $ | 23,973 | $ | 20,379 | ||||||||
Comparable hotel direct margin % | 12.9 | % | 9.4 | % | 21.3 | % | 19.3 | % |
Red Lion Hotels Corporation | ||||||||||||||||||
Reconciliation of Non-GAAP Measures | ||||||||||||||||||
(unaudited) | ||||||||||||||||||
($ in thousands) | ||||||||||||||||||
EBITDA is defined as net income (loss), before interest, taxes, depreciation and amortization. We believe it is a useful financial performance measure due to the significance of our long-lived assets and level of indebtedness. Adjusted EBITDA and Adjusted net income (loss) are additional measures of financial performance. We believe that the inclusion or exclusion of certain special items, such as gains and losses on asset dispositions and impairments, is necessary to provide the most accurate measure of core operating results and as a means to evaluate comparative results. EBITDA, Adjusted EBITDA and Adjusted net income (loss) are commonly used measures of performance in the industry. We utilize these measures because management finds them a useful tool to perform more meaningful comparisons of past, present and future operating results and as a means to evaluate the results of core, ongoing operations. We believe they are a complement to reported operating results. EBITDA, Adjusted EBITDA and Adjusted net income (loss) are not intended to represent net income (loss) defined by generally accepted accounting principles in the United States ("GAAP"), and such information should not be considered as an alternative to reported information or any other measure of performance prescribed by GAAP. In addition, other companies in our industry may calculate EBITDA and in particular Adjusted EBITDA and Adjusted net income (loss) differently than we do or may not calculate them at all, limiting the usefulness of EBITDA, Adjusted EBITDA and Adjusted net income (loss) as comparative measures. | ||||||||||||||||||
The following is a reconciliation of EBITDA and Adjusted EBITDA to net income (loss) for the periods presented: | ||||||||||||||||||
Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||
Net income (loss) | $ | (4,418 | ) | $ | (13,958 | ) | $ | 2,303 | $ | (17,047 | ) | |||||||
Depreciation and amortization | 3,196 | 3,270 | 12,762 | 13,960 | ||||||||||||||
Interest expense | 1,138 | 1,235 | 4,575 | 5,516 | ||||||||||||||
Income tax (benefit) expense | — | 736 | 31 | (817 | ) | |||||||||||||
EBITDA | (84 | ) | (8,717 | ) | 19,671 | 1,612 | ||||||||||||
Discontinued operations (1) | — | 1,028 | 189 | 1,977 | ||||||||||||||
Loss (gain) on asset dispositions (2) | (475 | ) | — | (3,996 | ) | — | ||||||||||||
Early termination fee (3) | — | — | (2,095 | ) | — | |||||||||||||
Lease termination costs (4) | 750 | — | 750 | — | ||||||||||||||
Asset impairment (5) | — | 7,785 | — | 7,785 | ||||||||||||||
Separation costs (6) | 356 | — | 356 | 582 | ||||||||||||||
Adjusted EBITDA | $ | 547 | $ | 96 | $ | 14,875 | $ | 11,956 | ||||||||||
(1 | ) | Discontinued operations includes the following: a commercial mall in Kalispell, Montana that was sold in first quarter 2013; a catering contract in Yakima, Washington that was terminated in first quarter 2013; a hotel in Medford, Oregon that was sold in third quarter 2013; and a hotel in Eugene, Oregon that ceased operations in first quarter 2014. | ||||||||||||||||
(2 | ) | In the fourth quarter of 2014, we recorded $0.5 million in gain on the sale of the Pocatello property. In the second quarter of 2014, we recorded $3.5 million in gains on the sales of the Yakima, Kelso, Kennewick and Canyon Springs properties. These amounts are included in the line item "Gain on asset dispositions, net" on the accompanying consolidated statements of comprehensive income (loss). | ||||||||||||||||
(3 | ) | During the second quarter of 2014, we recorded income from a $2.1 million early termination fee related to the Seattle Fifth Avenue Hotel terminating its franchise agreement. This amount is included in the line item "Franchise revenue" on the accompanying consolidated statements of comprehensive income (loss). | ||||||||||||||||
(4 | ) | In the fourth quarter of 2014, we amended the lease for the Red Lion Hotel Vancouver at the Quay and recorded an additional $0.8 million in amortized lease termination fees. | ||||||||||||||||
(5 | ) | In the fourth quarter of 2013, we recorded a $7.8 million impairment charge on the Yakima, Canyon Springs, Pocatello, Kelso and Wenatchee properties. | ||||||||||||||||
(6 | ) | During the fourth quarter of 2014, we recorded a $0.4 million separation cost associated with the separation of the former Executive Vice President and Chief Financial Officer. During the third quarter of 2013, we recorded a $0.4 million separation cost associated with the retirement of the former President and Chief Executive Officer and a $0.2 million charge related to the separation of a former Executive Vice President and Chief Operating Officer. |
Red Lion Hotels Corporation | ||||||||||||||||||
Reconciliation of Adjusted Net Income (Loss) to Net Income (Loss) | ||||||||||||||||||
(unaudited) | ||||||||||||||||||
($ in thousands) | ||||||||||||||||||
The following is a reconciliation of adjusted net income to net income (loss) for the periods presented: | ||||||||||||||||||
Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||
Net income (loss) | $ | (4,418 | ) | $ | (13,958 | ) | $ | 2,303 | $ | (17,047 | ) | |||||||
Discontinued operations (1) | — | 1,028 | 189 | 1,977 | ||||||||||||||
Loss (gain) on asset dispositions (2) | (475 | ) | — | (3,996 | ) | — | ||||||||||||
Early termination fee (3) | — | — | (2,095 | ) | — | |||||||||||||
Lease termination costs (4) | 750 | — | 750 | — | ||||||||||||||
Asset impairment (5) | — | 7,785 | — | 7,785 | ||||||||||||||
Separation costs (6) | 356 | — | 356 | 582 | ||||||||||||||
Adjusted net income (loss) | $ | (3,787 | ) | $ | (5,145 | ) | $ | (2,493 | ) | $ | (6,703 | ) | ||||||
Adjusted net income (loss) per share | (0.19 | ) | (0.26 | ) | (0.13 | ) | (0.34 | ) | ||||||||||
Weighted average shares - basic | 19,846 | 19,684 | 19,785 | 19,575 | ||||||||||||||
Weighted average shares - diluted | 19,846 | 19,684 | 19,785 | 19,575 | ||||||||||||||
(1 | ) | Discontinued operations includes the following: a commercial mall in Kalispell, Montana that was sold in first quarter 2013; a catering contract in Yakima, Washington that was terminated in first quarter 2013; a hotel in Medford, Oregon that was sold in third quarter 2013; and a hotel in Eugene, Oregon that ceased operations in first quarter 2014. | ||||||||||||||||
(2 | ) | In the fourth quarter of 2014, we recorded $0.5 million in gain on the sale of the Pocatello property. In the second quarter of 2014, we recorded $3.5 million in gains on the sales of the Yakima, Kelso, Kennewick and Canyon Springs properties. These amounts are included in the line item "Gain on asset dispositions, net" on the accompanying consolidated statements of comprehensive income (loss). | ||||||||||||||||
(3 | ) | During the second quarter of 2014, we recorded income from a $2.1 million early termination fee related to the Seattle Fifth Avenue Hotel terminating its franchise agreement. This amount is included in the line item "Franchise revenue" on the accompanying consolidated statements of comprehensive income (loss). | ||||||||||||||||
(4 | ) | In the fourth quarter of 2014, we amended the lease for the Red Lion Hotel Vancouver at the Quay and recorded an additional $0.8 million in amortized lease termination fees. | ||||||||||||||||
(5 | ) | In the fourth quarter of 2013, we recorded a $7.8 million impairment charge on the Yakima, Canyon Springs, Pocatello, Kelso and Wenatchee properties. | ||||||||||||||||
(6 | ) | During the fourth quarter of 2014, we recorded a $0.4 million separation cost associated with the separation of the former Executive Vice President and Chief Financial Officer. During the third quarter of 2013, we recorded a $0.4 million separation cost associated with the retirement of the former President and Chief Executive Officer and a $0.2 million charge related to the separation of a former Executive Vice President and Chief Operating Officer. |
Washington | 001-13957 | 91-1032187 | ||
(State or Other Jurisdiction | (Commission file number) | (I.R.S. Employer | ||
of Incorporation) | Identification No.) |
RED LION HOTELS CORPORATION | ||||
Dated: February 26, 2015 | By: | /s/ James A. Bell | ||
James A. Bell | ||||
Executive Vice President, Chief Financial Officer | ||||
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