SPOKANE, Wash., Feb. 28, 2012 -- Red Lion Hotels Corporation
(NYSE: RLH), a western U.S. based owner and franchisor
of midscale hotels, today announced its results for the fourth quarter
and year ended December 31, 2011.
Comparable operating results and data from continuing
operations (as disclosed in the table by the same title) for the
periods included in this release exclude from hotel operations the
results of the Red Lion Hotel on Fifth Avenue in Seattle, which was sold in the second
quarter of 2011. Following the sale, this property continues to operate
as a franchised hotel and the company is therefore required to report
its financial results in continuing operations.
Fourth Quarter Overview:
- RevPAR for comparable owned and leased hotels decreased
0.9 percent year over year
- Comparable EBITDA from continuing operations before
special items increased $1.9 million
compared with fourth quarter 2010
- Recorded pre-tax goodwill and asset impairment charges
of $20.5 million in continuing operations
- Net loss from continuing operations, including the
impairment charges, was $20.2 million
compared to $7.1 million in the prior
year
- Acquired 10 previously leased hotels in a tax-deferred
exchange
- Added three new franchised hotels in New Mexico
Full Year Overview:
- RevPAR from comparable owned and leased hotels increased
2.7 percent
- Comparable EBITDA from continuing operations before
special items decreased $3.9 million
compared to prior year
- Recorded pre-tax goodwill and asset impairment charges
of $22.7 million in continuing operations
- Sold Seattle Fifth Avenue for $71
million and recorded a gain of $33.5
million.
- Net loss from continuing operations was $6.0 million compared to $7.9 million in the prior year
- Added six new franchised hotels
"In 2011, our RevPAR growth exceeded that of our competitors
in our markets and we continued to maintain our market share," said Jon E. Eliassen, President and Chief
Executive Officer of Red Lion Hotels Corporation. "At the same time, we
significantly improved our balance sheet by paying down debt and
acquiring previously leased hotels. As we look forward, we believe our
hotels will be well positioned to compete for business when the economy
recovers in our region."
Total revenue from continuing operations reported during the
fourth quarter was $33.2 million
compared to $36.0 million in the fourth
quarter of 2010. On a comparable basis, total revenue increased $0.4 million from $32.8
million in the fourth quarter of 2010. Fourth quarter 2011
reported a net loss from continuing operations of $20.2 million, or $1.05
per share, compared to a net loss from continuing operations of $7.1 million, or $0.38
per share, for the prior year period. Fourth quarter 2011 results from
continuing operations include $20.5 million
in pre-tax impairment charges, of which $14.2
million is related to the Company's goodwill and $6.3 million is related to the assets of the
Red Lion Hotel Denver Southeast and Red Lion Hotel Vancouver at the
Quay hotels. These impairment charges are reflected as special items in
2011 results. In the fourth quarter of 2011, comparable EBITDA from
continuing operations before special items was $1.7
million, compared to ($0.2) million,
for the fourth quarter of 2010.
Summary Results
Revenue and EBITDA from continuing operations for the three
months and full year ended December 31, 2011,
and December 31, 2010, follow:
|
($ in
thousands)
|
|
|
|
|
|
|
|
|
|
|
Three
months ended December 31,
|
|
Year
ended December 31,
|
|
|
|
2011
|
2010
|
%
change
|
|
2011
|
2010
|
%
change
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
revenue, as reported
|
$
33,188
|
$
35,982
|
-7.8%
|
|
$
156,080
|
$
159,304
|
-2.0%
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|
|
|
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|
Results
before special items: (1)
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|
|
EBITDA from continuing operations
|
$ 1,702
|
$ 760
|
123.9%
|
|
$
15,598
|
$
22,567
|
-30.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
Results
as reported:
|
|
|
|
|
|
|
|
|
|
EBITDA from continuing operations
|
$
(18,808)
|
$
(3,413)
|
n/m
|
|
$
26,481
|
$
17,175
|
54.2%
|
|
|
|
|
|
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(1)
The above excludes asset and goodwill impairments, gain on sale of
assets, severance charges and charges associated with a franchise and
sublease termination which are included in the non-GAAP reconciliation
schedule named, "Disclosure of Special Items" contained in this release.
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In addition, on a comparable continuing operations basis, key
hotel operating metrics and EBITDA for the three months and full year
ended December 31, 2011, and December 31, 2010, are highlighted below for
owned and leased hotels:
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|
|
|
|
|
|
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|
Three
months ended December 31,
|
|
Year
ended December 31,
|
|
|
|
2011
|
2010
|
change
|
|
2011
|
2010
|
change
|
|
|
|
|
|
|
|
|
|
|
|
|
RevPAR
(revenue per available room)
|
$ 38.01
|
$ 38.35
|
-0.9%
|
|
$ 47.45
|
$ 46.22
|
2.7%
|
|
|
ADR
(average daily rate)
|
$ 76.71
|
$ 76.33
|
0.5%
|
|
$ 81.71
|
$ 81.24
|
0.6%
|
|
|
Occupancy
|
49.6%
|
50.2%
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(60)
|
bps
|
58.1%
|
56.9%
|
120
|
|
|
|
|
|
|
|
|
|
|
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|
Hotels
revenue:
|
|
|
|
|
|
|
|
|
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Rooms
|
$
19,454
|
$
19,627
|
-0.9%
|
|
$
96,355
|
$
93,855
|
2.7%
|
|
|
Food
and beverage
|
8,763
|
8,546
|
2.5%
|
|
32,741
|
32,968
|
-0.7%
|
|
|
Other
revenue
|
684
|
818
|
-16.4%
|
|
3,208
|
3,276
|
-2.1%
|
|
|
Total
hotels revenue
|
$
28,901
|
$
28,991
|
-0.3%
|
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$
132,304
|
$
130,099
|
1.7%
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Hotel
direct operating margin
|
13.8%
|
8.4%
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|
19.2%
|
20.5%
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Comparable
EBITDA from continuing operations
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|
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|
|
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|
|
|
before
special items (1)
|
$ 1,702
|
$ (165)
|
n/m
|
|
$
13,897
|
$
17,755
|
-21.7%
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(1)
The above excludes asset and goodwill impairments, gain on sale of
assets, severance charges and charges associated with a franchise and
sublease termination which are included in the non-GAAP reconciliation
schedule named, "Disclosure of Special Items" contained in this release.
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Fourth Quarter 2011 Results
In the fourth quarter of 2011, for comparable owned and leased
hotels from continuing operations, excluding Seattle Fifth Avenue,
occupancy decreased 60 basis points to 49.6 percent and ADR increased
0.5 percent to $76.71. Both contributed
to a 0.9 percent decrease in comparable RevPAR year over year.
On a comparable hotel basis, EBITDA from continuing operations
before special items was $1.7 million
for the fourth quarter compared to ($0.2)
million in the prior year period. Hotel revenue on a comparable
basis of $28.9 million was flat compared
to the same period a year ago. Food and beverage revenue on a
comparable basis increased $0.2 million
compared to the prior year at $8.5 million.
Hotel direct operating margin on a comparable basis increased to 13.8
percent from 8.4 percent in the same period in 2010. This improvement
was due to prior year workers' compensation recoveries, payroll cost
containment initiatives and an improvement in food margins.
Franchise revenue increased to $1.1
million from $0.8 million.
Profitability improved year-over-year as fourth quarter 2010 results
were negatively impacted by the termination of the franchise agreement
with the previous subtenant of the Sacramento
property.
Revenue in the entertainment segment was essentially flat at $2.4 million compared to the same period last
year.
Full Year Ended December 31, 2011
Results
Total revenue on a comparable basis for the full year ended December 31, 2011 was $150.1
million versus $145.0 million in
the prior year. Comparable revenue from hotels of $132.3 million was up $2.2
million, or 1.7 percent. Comparable hotel direct operating
margin declined to 19.2 percent from 20.5 percent in the prior year
period, primarily driven by increased sales, marketing, energy and
maintenance costs. Labor costs for 2011 were positively impacted by
seasonal reductions in the fourth quarter.
RevPAR for comparable owned and leased hotels increased 2.7
percent driven by a 120 basis point increase in occupancy and a 0.6
percent increase in ADR.
Franchise revenue increased to $4.0
million from $3.2 million.
Profitability improved year-over-year as fourth quarter 2010 results
were negatively impacted by the termination of the franchise agreement
with the previous subtenant of the Sacramento
property.
Entertainment revenue increased $2.1
million driven by a favorable mix of productions during the
year. This increase was partially offset by a decrease in revenue from
the ticketing portion of this segment. Ticketing revenue was negatively
impacted by weak demand for entertainment events in the company's
markets.
Discontinued Operations
During the quarter, the company listed for sale its hotels in Medford, Ore., and Missoula, Mont., two non-core assets in
which the company does not expect to maintain significant continuing
involvement. Accordingly, the operations of these properties have been
classified as "discontinued operations" in the company's statement of
operations. This presentation, as required under generally accepted
accounting principles ("GAAP"), separately reports the revenue and
expenses including any related asset impairment charges, net of income
taxes as "net income (loss) from discontinued operations" on the
company's statement of operations for this quarter and any comparable
periods presented.
Asset Impairments
During the fourth quarter, the company recorded $20.5 million in pre-tax goodwill and asset
impairment charges in continuing operations as follows:
- The company conducted its annual goodwill impairment
analysis in the fourth quarter and concluded that, due to the decline
in hotel profitability, the portion of the goodwill asset related to
hotel operations was fully impaired. As a result, the company recorded $14.2 million in goodwill impairment.
- The company recorded an impairment of the assets of the Red
Lion Hotel Denver Southeast totaling $4.6
million to reflect the estimated fair value of the hotel net of
selling costs.
- Due to an anticipated right of way acquisition by the State of Washington of the Red Lion Hotel
Vancouver at the Quay property in order to construct a replacement of
the I-5 Bridge, the company recorded an asset impairment of $1.7 million to reflect the fair value of the
related assets.
In the third quarter, the company recorded a $2.2 million pre-tax asset and goodwill
impairment charge related to the held for sale hotel in Helena, Mont., to reflect the estimated
fair value of the hotel net of selling costs.
These impairment charges are excluded from our reported EBITDA
from continuing operations before special items for 2011 and separately
identified in the Company's operating results.
Liquidity and Balance Sheet
As of December 31, 2011, the
company had $1.9 million in cash and
cash equivalents, and $6.8 million
available on its line of credit. Additionally, as of December 31, 2011, the company had outstanding
debt of $101.3 million, of which $4.1 million is current. This compares to
outstanding debt of $126.0 million, of
which $43.3 million was current, at December 31, 2010.
Capital expenditures for the full year ended December 31, 2011, totaled $8.9 million primarily for hotel improvement
projects.
The Red Lion Colonial Hotel in Helena,
Red Lion Inn Missoula, Red Lion Hotel Denver Southeast and Red Lion
Hotel Medford were classified as assets held for sale on the balance
sheet at December 31, 2011. Denver
Southeast, Medford and Missoula were added to this classification
in the fourth quarter of 2011.
In November, the company paid $37
million to purchase 10 previously leased hotels from a
subsidiary of iStar Financial Inc.
In October, the company completed an expanded $40 million credit facility with Wells Fargo
Bank, making available up to $10 million
on a revolving line, in addition to $30 million
in term debt obtained in September 2011.
In connection with the expansion of this credit facility, the company
retired $22 million of CMBS debt.
Franchise Update
In November and December, the company added three franchised
hotels in Farmington, Gallup and Grants,
N.M. These hotels expanded the company's western United States footprint from eight states
to nine.
Subsequent Events
In January, the company listed for sale the Red Lion Hotel
Denver Southeast. The company expects to maintain the hotel's Red Lion
affiliation as a franchised property.
Outlook for 2012
Based on the outlook for the markets in which the company
operates and information available today, the company is providing the
following guidance for 2012:
- Full year 2012 RevPAR for comparable owned and leased
hotels is expected to increase 2 to 4 percent over 2011 on an annual
basis.
- The company expects to invest $10
million in capital improvements in 2012.
Conference Call Information
The company will conduct a conference call on February 28, 2012, at 2:00
p.m. Pacific Time (5:00 p.m. Eastern Time),
to discuss the results for interested investors, analysts and portfolio
managers. Hosting the call will be President and Chief Executive
Officer Jon E. Eliassen and Executive
Vice President and Chief Financial Officer Julie
Shiflett. Executive Vice President and Chief Operating Officer George Schweitzer will also be available to
answer questions.
To participate in the conference call, please dial the
following number ten minutes prior to the scheduled time: (800)
230-1096. International callers should dial (612) 288-0337.
This conference call will also be webcast live at http://www.redlion.com in the Investor Relations
section of the website. To listen to the live call, please go to the
Red Lion website at least fifteen minutes prior to the start of the
call to register and to download and install any necessary audio
software. For those unable to participate during the live broadcast, a
replay will be available at 4:00 p.m. Pacific
Time on February 28, 2012,
through March 28, 2012, at (800)
475-6701 or (320) 365-3844 (International) access code – 236301. The
replay will also be available shortly after the call on the Red Lion
website.
About Red Lion Hotels Corporation:
Red Lion Hotels Corporation is a hospitality and leisure
company primarily engaged in the ownership, operation and franchising
of midscale hotels under its Red Lion® brand. As of December 31, 2011, the RLH hotel network was
comprised of 48 hotels located in nine states and one Canadian
province, with 9,010 rooms and 452,387 square feet of meeting space.
The company also owns and operates an entertainment and event ticket
distribution business. For more information, please visit the company's
website at www.redlion.com.
This press release contains forward-looking statements
within the meaning of federal securities law, including statements
concerning plans, objectives, goals, strategies, projections of future
events or performance and underlying assumptions (many of which are
based, in turn, upon further assumptions). The forward-looking
statements in this press release are inherently subject to a variety of
risks and uncertainties that could cause actual results to differ
materially from those expressed. Such risks and uncertainties include,
among others, economic cycles; international conflicts; changes in
future demand and supply for hotel rooms; competitive conditions in the
lodging industry; relationships with franchisees and properties; impact
of government regulations; ability to obtain financing; changes in
energy, healthcare, insurance and other operating expenses; ability to
sell non-core assets; ability to locate lessees for rental property;
dependency upon the ability and experience of executive officers and
ability to retain or replace such officers as well as other matters
discussed in the Company's annual report on Form 10-K for the year
ended December 31, 2010 and in other
documents filed by the Company with the Securities and Exchange
Commission.
Company Contact:
Pam Scott
Director of Corporate Communications
(509) 777-6393
Red
Lion Hotels Corporation
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|
|
Consolidated
Statements of Operations
|
|
|
(unaudited)
|
|
|
($ in
thousands, except footnotes and per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
months ended December 31,
|
|
|
|
|
|
|
2011
|
2010
|
$
Change
|
%
Change
|
|
|
|
|
|
|
|
|
|
Revenue:
|
|
|
|
|
|
|
|
Hotels
|
|
$
28,901
|
$
32,184
|
$
(3,283)
|
-10.2%
|
|
|
Franchise
|
|
1,085
|
761
|
324
|
42.6%
|
|
|
Entertainment
|
|
2,439
|
2,370
|
69
|
2.9%
|
|
|
Other
|
|
763
|
667
|
96
|
14.4%
|
|
|
|
|
|
|
|
|
|
|
Total
revenues
|
|
33,188
|
35,982
|
(2,794)
|
-7.8%
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
Hotels
|
|
24,907
|
28,816
|
(3,909)
|
-13.6%
|
|
|
Franchise
|
|
950
|
940
|
10
|
1.1%
|
|
|
Entertainment
|
|
2,348
|
2,225
|
123
|
5.5%
|
|
|
Other
|
|
524
|
321
|
203
|
63.2%
|
|
|
Depreciation
and amortization
|
|
4,461
|
5,192
|
(731)
|
-14.1%
|
|
|
Hotel
facility and land lease (1)
|
|
1,322
|
147
|
1,175
|
n/m
|
|
|
Goodwill
impairment (2)
|
|
14,236
|
-
|
14,236
|
n/m
|
|
|
Asset
impairment (2)
|
|
6,274
|
5,733
|
541
|
9.4%
|
|
|
Loss
(gain) on asset dispositions, net
|
|
319
|
248
|
(71)
|
-28.6%
|
|
|
Undistributed
corporate expenses
|
|
1,148
|
1,068
|
80
|
7.5%
|
|
|
|
|
|
|
|
|
|
|
Total
expenses
|
|
56,489
|
44,690
|
11,799
|
26.4%
|
|
|
|
|
|
|
|
|
|
Operating
income (loss)
|
|
(23,301)
|
(8,708)
|
(14,593)
|
-167.6%
|
|
|
|
|
|
|
|
|
|
Other
income (expense):
|
|
|
|
|
|
|
|
Interest
expense
|
|
(1,802)
|
(2,241)
|
(439)
|
-19.6%
|
|
|
Other
income, net
|
|
22
|
96
|
(74)
|
-77.1%
|
|
|
|
|
|
|
|
|
|
Income
(loss) before income taxes
|
|
(25,081)
|
(10,853)
|
(14,228)
|
-131.1%
|
|
|
|
|
|
|
|
|
|
Income
tax (benefit) expense
|
|
(4,923)
|
(3,796)
|
(1,127)
|
29.7%
|
|
|
|
|
|
|
|
|
|
Net
income (loss) from continuing operations
|
|
(20,158)
|
(7,057)
|
(13,101)
|
-185.6%
|
|
|
|
|
|
|
|
|
|
Discontinued
operations:
|
|
|
|
|
|
|
|
Income
(loss) from operations of discontinued business units,
|
|
|
|
|
|
|
|
net
of income tax (benefit) expense of $(64) and $(96) respectively
|
|
(114)
|
(170)
|
56
|
32.9%
|
|
|
Impairment
of the assets of the discontinued business units,
|
|
|
|
|
|
|
|
net
of income tax (benefit) expense of $(370)
|
|
(651)
|
-
|
(651)
|
n/m
|
|
|
|
|
|
|
|
|
|
Net
income (loss) from discontinued operations
|
|
(765)
|
(170)
|
(595)
|
n/m
|
|
|
|
|
|
|
|
|
|
Net
income (loss)
|
|
(20,923)
|
(7,227)
|
(13,696)
|
-189.5%
|
|
|
|
|
|
|
|
|
|
Less:
Net income or (loss) attributable to noncontrolling interest
|
|
10
|
7
|
3
|
42.9%
|
|
|
|
|
|
|
|
|
|
Net
income (loss) attributable to Red Lion Hotels Corporation (1,2)
|
|
$
(20,913)
|
$
(7,220)
|
$
(13,693)
|
-189.7%
|
|
|
|
|
|
|
|
|
|
Earnings
per share - basic
|
|
|
|
|
|
|
|
Net
income (loss) from continuing operations
|
|
$
(1.05)
|
$
(0.38)
|
|
|
|
|
Net
Income (loss) from discontinued operations
|
|
$
(0.04)
|
$
(0.01)
|
|
|
|
|
Net
income (loss) attributable to Red Lion Hotels Corporation
|
|
$
(1.09)
|
$
(0.39)
|
|
|
|
Weighted
average shares - basic
|
|
19,123
|
18,732
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
Financial Measures:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA
(1,2,3)
|
|
$
(19,941)
|
$
(3,576)
|
$
(16,365)
|
457.6%
|
|
EBITDA
as a percentage of revenues
|
|
-60.1%
|
-9.9%
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA
from continuing operations (1,2,3)
|
|
$
(18,808)
|
$
(3,413)
|
$
(15,395)
|
451.1%
|
|
EBITDA
from continuing operations
|
|
-56.7%
|
-9.5%
|
|
|
|
|
as a
percentage of revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
The
three months ended December 31, 2010 include a $1.8 million credit
related to the termination of a franchise and sublease agreement. This
item is discussed further in this release under Disclosure of Special
Items.
|
|
|
|
|
(2)
|
The
three months ended December 31, 2011 include an impairment charge of
$4.6 million related to a hotel located in Denver, Colorado, an
impairment charge of $1.7 million related to a hotel located in
Vancouver, Washington and a goodwill impairment charge for $14.2
million. The three months ended December 31, 2010 include an impairment
charge of $5.7 million related to the termination of a franchise and
sublease agreement. These items are discussed further in this release
under Disclosure of Special Items.
|
|
|
|
|
(3)
|
The
definition of "EBITDA" and how that measure relates to net income
(loss) attributable to Red Lion Hotels Corporation is discussed further
in this release under Non-GAAP Financial Measures.
|
|
|
|
Red
Lion Hotels Corporation
|
|
|
Consolidated
Statements of Operations
|
|
|
(unaudited)
|
|
|
($ in
thousands, except footnotes and per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year
ended December 31,
|
|
|
|
|
|
|
2011
|
2010
|
$
Change
|
%
Change
|
|
|
|
|
|
|
|
|
|
Revenue:
|
|
|
|
|
|
|
|
Hotels
|
|
$
138,291
|
$
144,378
|
$
(6,087)
|
-4.2%
|
|
|
Franchise
|
|
3,955
|
3,209
|
746
|
23.2%
|
|
|
Entertainment
|
|
11,379
|
9,236
|
2,143
|
23.2%
|
|
|
Other
|
|
2,455
|
2,481
|
(26)
|
-1.0%
|
|
|
|
|
|
|
|
|
|
|
Total
revenues
|
|
156,080
|
159,304
|
(3,224)
|
-2.0%
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
Hotels
|
|
111,498
|
112,934
|
(1,436)
|
-1.3%
|
|
|
Franchise
|
|
4,092
|
3,118
|
974
|
31.2%
|
|
|
Entertainment
|
|
10,584
|
7,769
|
2,815
|
36.2%
|
|
|
Other
|
|
1,733
|
1,598
|
135
|
8.4%
|
|
|
Depreciation
and amortization
|
|
18,651
|
20,462
|
(1,811)
|
-8.9%
|
|
|
Hotel
facility and land lease (1)
|
|
7,252
|
5,117
|
2,135
|
41.7%
|
|
|
Goodwill
impairment (2)
|
|
14,236
|
-
|
14,236
|
n/m
|
|
|
Asset
impairment (2)
|
|
8,430
|
5,733
|
2,697
|
47.0%
|
|
|
Loss
(gain) on asset dispositions, net (3)
|
|
(33,379)
|
(25)
|
33,354
|
n/m
|
|
|
Undistributed
corporate expenses (4)
|
|
5,503
|
6,304
|
(801)
|
-12.7%
|
|
|
|
|
|
|
|
|
|
|
Total
expenses
|
|
148,600
|
163,010
|
(14,410)
|
-8.8%
|
|
|
|
|
|
|
|
|
|
Operating
income (loss)
|
|
7,480
|
(3,706)
|
11,186
|
n/m
|
|
|
|
|
|
|
|
|
|
Other
income (expense):
|
|
|
|
|
|
|
|
Interest
expense
|
|
(8,372)
|
(9,073)
|
701
|
7.7%
|
|
|
Other
income, net
|
|
436
|
409
|
27
|
6.6%
|
|
|
|
|
|
|
|
|
|
Income
(loss) before income taxes
|
|
(456)
|
(12,370)
|
11,914
|
n/m
|
|
|
|
|
|
|
|
|
|
Income
tax (benefit) expense
|
|
5,514
|
(4,520)
|
(10,034)
|
n/m
|
|
|
|
|
|
|
|
|
|
Net
income (loss) from continuing operations
|
|
(5,970)
|
(7,850)
|
1,880
|
n/m
|
|
|
|
|
|
|
|
|
|
Discontinued
operations:
|
|
|
|
|
|
|
|
Income
(loss) from operations of discontinued business units,
|
|
|
|
|
|
|
|
net
of income tax (benefit) expense of $(250) and $(397) respectively
|
|
(441)
|
(731)
|
290
|
39.7%
|
|
|
Impairment
of the assets of the discontinued business units,
|
|
|
|
|
|
|
|
net
of income tax (benefit) expense of $(370) and $(20) respectively
|
|
(651)
|
(38)
|
(613)
|
n/m
|
|
|
|
|
|
|
|
|
|
Net
income (loss) from discontinued operations
|
|
(1,092)
|
(769)
|
(323)
|
-42.0%
|
|
|
|
|
|
|
|
|
|
Net
income (loss)
|
|
(7,062)
|
(8,619)
|
1,557
|
n/m
|
|
|
|
|
|
|
|
|
|
Less:
Net income or (loss) attributable to noncontrolling interest
|
|
(86)
|
10
|
(96)
|
n/m
|
|
|
|
|
|
|
|
|
|
Net
income (loss) attributable to Red Lion Hotels Corporation (1,2,3,4)
|
|
$
(7,148)
|
$
(8,609)
|
$ 1,461
|
n/m
|
|
|
|
|
|
|
|
|
|
Earnings
per share - basic
|
|
|
|
|
|
|
|
Net
income (loss) from continuing operations
|
|
$
(0.31)
|
$
(0.43)
|
|
|
|
|
Net
Income (loss) from discontinued operations
|
|
$
(0.06)
|
$
(0.04)
|
|
|
|
|
Net
income (loss) attributable to Red Lion Hotels Corporation
|
|
$
(0.37)
|
$
(0.47)
|
|
|
|
Weighted
average shares - basic
|
|
19,053
|
18,485
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
Financial Measures:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA
(1,2,3,4,5)
|
|
$
25,139
|
$
16,444
|
$ 8,695
|
n/m
|
|
EBITDA
as a percentage of revenues
|
|
16.1%
|
10.3%
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA
from continuing operations (1,2,3,4,5)
|
|
$
26,481
|
$
17,175
|
$ 9,306
|
n/m
|
|
EBITDA
from continuing operations
|
|
17.0%
|
10.8%
|
|
|
|
|
as a
percentage of revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
The
year ended December 31, 2010 includes a $1.8 million credit related to
the termination of a franchise and sublease agreement. This item is
discussed further in this release under Disclosure of Special Items.
|
|
|
|
|
(2)
|
The
year ended December 31, 2011 includes an impairment charge of $2.2
million related to a hotel located in Helena, an impairment charge of
$4.6 million related to a hotel located in Denver, Colorado, an
impairment charge of $1.7 million related to a hotel located in
Vancouver, Washington, and a $14.2 million dollar goodwill impairment
charge. The year ended December 31, 2010 includes an impairment charge
of $5.7 million related to the termination of a franchise and sublease
agreement. These items are discussed further in this release under
Disclosure of Special Items.
|
|
|
|
|
(3)
|
Includes
$33.5 million gain on the sale of hotel property located in Seattle, WA
as discussed further in this release under Disclosure of Special Items.
|
|
|
|
|
(4)
|
Includes
$1.2 million of cash and non-cash expense recorded in the first quarter
of 2010 related to the separation of the company's former President and
CEO, as discussed further in this release under Disclosure of Special
Items.
|
|
|
|
|
(5)
|
The
definition of "EBITDA" and how that measure relates to net income
(loss) attributable to Red Lion Hotels Corporation is discussed further
in this release under Non-GAAP Financial Measures.
|
|
|
|
Red
Lion Hotels Corporation
|
|
Consolidated
Balance Sheets
|
|
(unaudited)
|
|
($ in
thousands, except share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December
31,
|
|
December
31,
|
|
|
|
|
|
|
|
|
2011
|
|
2010
|
|
Assets:
|
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
|
Cash
and cash equivalents
|
|
|
$ 1,981
|
|
$ 4,012
|
|
|
|
Restricted
cash
|
|
|
3,358
|
|
4,120
|
|
|
|
Accounts
receivable, net
|
|
|
7,591
|
|
5,985
|
|
|
|
Inventories
|
|
|
1,346
|
|
1,328
|
|
|
|
Prepaid
expenses and other
|
|
|
1,973
|
|
1,937
|
|
|
|
Deferred
income taxes
|
|
|
4,291
|
|
-
|
|
|
|
Assets
held for sale
|
|
|
30,380
|
|
-
|
|
|
|
|
|
Total
current assets
|
|
|
50,920
|
|
17,382
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property
and equipment, net
|
|
|
232,589
|
|
272,030
|
|
|
Goodwill
|
|
|
|
8,512
|
|
28,042
|
|
|
Intangible
assets, net
|
|
|
6,992
|
|
7,984
|
|
|
Other
assets, net
|
|
|
5,883
|
|
6,044
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
|
$
304,896
|
|
$
331,482
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
|
Accounts
payable
|
|
|
$ 4,928
|
|
$ 7,146
|
|
|
|
Accrued
payroll and related benefits
|
|
|
2,103
|
|
4,367
|
|
|
|
Accrued
interest payable
|
|
|
231
|
|
276
|
|
|
|
Advance
deposits
|
|
|
380
|
|
487
|
|
|
|
Other
accrued expenses
|
|
|
9,249
|
|
10,178
|
|
|
|
Revolving
credit facility
|
|
|
844
|
|
18,000
|
|
|
|
Long-term
debt, due within one year
|
|
|
3,274
|
|
25,275
|
|
|
|
|
|
Total
current liabilities
|
|
|
21,009
|
|
65,729
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term
debt, due after one year
|
|
|
66,378
|
|
51,877
|
|
|
Deferred
income
|
|
|
4,643
|
|
4,859
|
|
|
Deferred
income taxes
|
|
|
16,176
|
|
7,427
|
|
|
Debentures
due Red Lion Hotels Capital Trust
|
|
|
30,825
|
|
30,825
|
|
|
|
|
|
Total
liabilities
|
|
|
139,031
|
|
160,717
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
|
|
|
Red
Lion Hotels Corporation 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;
|
|
|
|
|
|
|
|
|
19,172,670
and 18,869,254 shares issued and outstanding
|
|
|
192
|
|
189
|
|
|
|
Additional
paid-in capital, common stock
|
|
|
149,027
|
|
146,834
|
|
|
|
Retained
earnings
|
|
|
16,589
|
|
23,737
|
|
|
|
|
|
Total
Red Lion Hotels Corporation stockholders' equity
|
|
|
165,808
|
|
170,760
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noncontrolling
interest
|
|
|
57
|
|
5
|
|
|
|
|
|
Total
stockholders' equity
|
|
|
165,865
|
|
170,765
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
liabilities and stockholders' equity
|
|
|
$
304,896
|
|
$
331,482
|
|
|
|
|
|
|
|
|
|
|
|
Red
Lion Hotels Corporation
|
|
Additional
Hotel Statistics
|
|
(unaudited)
|
|
|
|
|
System-wide
Hotels as of December 31, 2011
|
|
|
|
|
|
|
|
|
|
|
|
|
Meeting
Space
|
|
|
|
|
|
|
|
Hotels
|
Rooms
|
(sq.
ft.)
|
|
|
|
|
|
|
Red
Lion Owned or Leased Hotels (1):
|
|
|
|
|
|
|
|
|
|
Comparable Continuing Operations
|
28
|
5,563
|
280,574
|
|
|
|
|
|
|
Discontinued Operations
|
2
|
261
|
10,192
|
|
|
|
|
|
|
Red
Lion Franchised Hotels (1)
|
18
|
3,186
|
161,621
|
|
|
|
|
|
|
Total
Red Lion Hotels
|
48
|
9,010
|
452,387
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comparable
Hotel Statistics from Continuing Operations (1,2)
|
|
|
|
|
|
|
|
Three
months ended December 31, 2011
|
|
Three
months ended December 31, 2010
|
|
|
|
Average
|
|
|
|
Average
|
|
|
|
|
|
Occupancy
(3)
|
ADR (4)
|
RevPAR
(5)
|
|
Occupancy
(3)
|
ADR (4)
|
RevPAR
(5)
|
|
|
Owned
and Leased Hotels
|
49.6%
|
$ 76.71
|
$ 38.01
|
|
50.2%
|
$ 76.33
|
$ 38.35
|
|
|
Franchised
Hotels
|
56.1%
|
$ 81.53
|
$ 45.73
|
|
54.1%
|
$ 82.67
|
$ 44.74
|
|
|
Total
System Wide
|
51.3%
|
$ 78.15
|
$ 40.13
|
|
51.3%
|
$ 78.16
|
$ 40.10
|
|
|
|
|
|
|
|
|
|
|
|
|
Change
from prior comparative period:
|
|
|
|
|
|
|
|
|
|
Owned
and Leased Hotels
|
(0.6)
|
0.5%
|
-0.9%
|
|
|
|
|
|
|
Franchised Hotels
|
2.0
|
-1.4%
|
2.2%
|
|
|
|
|
|
|
Total
System Wide
|
-
|
-
|
0.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year
ended December 31, 2011
|
|
Year
ended December 31, 2010
|
|
|
|
Average
|
|
|
|
Average
|
|
|
|
|
|
Occupancy
(3)
|
ADR (4)
|
RevPAR
(5)
|
|
Occupancy
(3)
|
ADR (4)
|
RevPAR
(5)
|
|
|
Owned
and Leased Hotels
|
58.1%
|
$ 81.71
|
$ 47.45
|
|
56.9%
|
$ 81.24
|
$ 46.22
|
|
|
Franchised
Hotels
|
64.5%
|
$ 85.59
|
$ 55.24
|
|
60.3%
|
$ 86.70
|
$ 52.27
|
|
|
Total
System Wide
|
59.8%
|
$ 82.86
|
$ 49.59
|
|
57.8%
|
$ 82.80
|
$ 47.88
|
|
|
|
|
|
|
|
|
|
|
|
|
Change
from prior comparative period:
|
|
|
|
|
|
|
|
|
|
Owned
and Leased Hotels
|
1.2
|
0.6%
|
2.7%
|
|
|
|
|
|
|
Franchised Hotels
|
4.2
|
-1.3%
|
5.7%
|
|
|
|
|
|
|
Total
System Wide
|
2.0
|
0.1%
|
3.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Includes
all hotels owned, leased and franchised, presented on a comparable
basis for hotel statistics. The Seattle property has been excluded from
the owned and leased hotel statistics and included
in the franchised statistics for all periods shown
|
|
|
|
|
(2)
|
Excludes
two hotels identified as discontinued operations.
|
|
|
|
|
(3)
|
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.
|
|
|
|
|
(4)
|
Average
daily rate ("ADR") represents total room revenues divided by the total
number of paid rooms occupied by hotel guests.
|
|
|
|
|
(5)
|
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 are defined as properties
that are owned or leased by the company and the operations of which are
included in the consolidated results from continuing operations for the
entirety of the reporting periods being compared.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
months ended December 31,
|
|
Year
ended December 31,
|
|
|
|
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comparable
total revenue (2)
|
|
|
$
33,188
|
|
$
32,789
|
|
$
150,093
|
|
$
145,025
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comparable
hotel revenue (2)
|
|
|
28,901
|
|
28,991
|
|
132,304
|
|
130,099
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comparable
hotel operating expense (3)
|
|
|
24,907
|
|
26,548
|
|
106,859
|
|
103,469
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comparable
hotel direct operating profit (1)
|
|
|
3,994
|
|
2,443
|
|
25,445
|
|
26,630
|
|
|
Comparable
hotel direct operating margin (1)
|
|
|
13.8%
|
|
8.4%
|
|
19.2%
|
|
20.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comparable
total EBITDA from continuing operations before special items (4)
|
|
|
$
1,702
|
|
$
(165)
|
|
$
13,897
|
|
$
17,755
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Operating profit margins are calculated by dividing the applicable
operating profit by the related revenue amount. GAAP margins are
calculated using amounts presented in the consolidated statements of
operations. Comparable margins are calculated using amounts presented
in the table above.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2) The
reconciliation of total and hotel revenue per the consolidated
statements of operations to comparable total and hotel revenue is as
follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
months ended December 31,
|
|
Year
ended December 31,
|
|
|
|
|
|
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
revenue per the consolidated statements of operations
|
|
|
$
33,188
|
|
$
35,982
|
|
$
156,080
|
|
$
159,304
|
|
|
|
|
less:
Revenue from Seattle Fifth Avenue property
|
|
|
-
|
|
(3,193)
|
|
(5,987)
|
|
(14,279)
|
|
|
|
|
Comparable
total revenue
|
|
|
$
33,188
|
|
$
32,789
|
|
$
150,093
|
|
$
145,025
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hotel
revenue per the consolidated statements of operations
|
|
|
$
28,901
|
|
$
32,184
|
|
$
138,291
|
|
$
144,378
|
|
|
|
|
less:
Revenue from Seattle Fifth Avenue property
|
|
|
-
|
|
(3,193)
|
|
(5,987)
|
|
(14,279)
|
|
|
|
|
Comparable
hotel revenue
|
|
|
$
28,901
|
|
$
28,991
|
|
$
132,304
|
|
$
130,099
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3)
The reconciliation of hotel operating expense per the consolidated
statements of operations to comparable hotel operating expense is as
follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
months ended December 31,
|
|
Year
ended December 31,
|
|
|
|
|
|
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hotel
operating expense per the consolidated statements of operations
|
|
|
$
24,907
|
|
$
28,816
|
|
$
111,498
|
|
$
112,934
|
|
|
|
|
less:
Operating expense from Seattle Fifth Avenue property
|
|
|
-
|
|
(2,268)
|
|
(4,639)
|
|
(9,465)
|
|
|
|
|
Comparable
hotel operating expense
|
|
|
$
24,907
|
|
$
26,548
|
|
$
106,859
|
|
$
103,469
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(4)
The reconciliation of EBITDA from continuing operations before special
items per the table titled "Disclosure of Special Items" to comparable
total EBITDA before special items is as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
months ended December 31,
|
|
Year
ended December 31,
|
|
|
|
|
|
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA
before special items per the table "Disclosure of Special Items"
|
|
|
$
1,702
|
|
$ 760
|
|
$
15,598
|
|
$
22,567
|
|
|
|
|
less:
EBITDA of Seattle Fifth Avenue property
|
|
|
-
|
|
(925)
|
|
(1,701)
|
|
(4,812)
|
|
|
|
|
Comparable
total EBITDA from continuing operations before special items
|
|
|
$
1,702
|
|
$
(165)
|
|
$
13,897
|
|
$
17,755
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Red
Lion Hotels Corporation
|
|
|
|
|
|
Reconciliation
of EBITDA to Net Income Attributable to Red Lion Hotels Corporation
|
|
|
|
|
|
(unaudited)
|
|
|
|
|
|
($ in
thousands)
|
|
|
|
|
|
|
|
|
|
|
The
following is a reconciliation of EBITDA and EBITDA from continuing
operations to net income (loss) attributable to Red Lion Hotels
Corporation for the periods presented:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
months ended December 31,
|
|
Year
ended December 31,
|
|
|
|
|
|
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA
|
|
|
|
|
$
(19,941)
|
|
$
(3,576)
|
|
$
25,139
|
|
$
16,444
|
|
|
Income
tax benefit (expense)
|
|
|
|
|
5,357
|
|
3,892
|
|
(4,894)
|
|
4,937
|
|
|
Interest
expense
|
|
|
|
|
(1,802)
|
|
(2,241)
|
|
(8,372)
|
|
(9,073)
|
|
|
Depreciation
and amortization
|
|
|
|
|
(4,527)
|
|
(5,295)
|
|
(19,021)
|
|
(20,917)
|
|
Net
income (loss) attributable to Red Lion Hotels Corporation
|
|
|
|
|
$
(20,913)
|
|
$
(7,220)
|
|
$
(7,148)
|
|
$
(8,609)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
months ended December 31,
|
|
Year
ended December 31,
|
|
|
|
|
|
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA from continuing operations
|
|
|
|
|
$
(18,808)
|
|
$
(3,413)
|
|
$
26,481
|
|
$
17,175
|
|
|
Income
tax benefit (expense)
|
|
|
|
|
4,923
|
|
3,796
|
|
(5,514)
|
|
4,520
|
|
|
Interest
expense
|
|
|
|
|
(1,802)
|
|
(2,241)
|
|
(8,372)
|
|
(9,073)
|
|
|
Depreciation
and amortization
|
|
|
|
|
(4,461)
|
|
(5,192)
|
|
(18,651)
|
|
(20,462)
|
|
|
Discontinued
operations, net of tax
|
|
|
|
|
(765)
|
|
(170)
|
|
(1,092)
|
|
(769)
|
|
Net
income (loss) attributable to Red Lion Hotels Corporation
|
|
|
|
|
$
(20,913)
|
|
$
(7,220)
|
|
$
(7,148)
|
|
$
(8,609)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NON-GAAP
FINANCIAL MEASURES
|
|
EBITDA
is defined as net income attributable to Red Lion Hotels Corporation,
before interest, taxes, depreciation and amortization. EBITDA is
considered a non-GAAP financial measurement. We believe it is a useful
financial performance measure for us and for our shareholders and is a
complement to net income attributable to Red Lion Hotels Corporation
and other financial performance measures provided in accordance with
generally accepted accounting principles in the United States ("GAAP").
We use
EBITDA to measure financial performance because it excludes interest,
taxes, depreciation and amortization, which bear little or no
relationship to operating performance. By excluding interest expense,
EBITDA measures our financial performance irrespective of our capital
structure or how we finance our properties and operations. We generally
pay federal and state income taxes on a consolidated basis, taking into
account how the applicable taxing laws apply to our company in the
aggregate. By excluding taxes on income, we believe EBITDA provides a
basis for measuring the financial performance of our operations
excluding factors that our hotels and other operations cannot control.
By excluding depreciation and amortization expense, which can vary from
hotel to hotel based on historical cost and other factors unrelated to
the hotels’ financial performance, EBITDA measures the financial
performance of our hotels without regard to their historical cost. For
all of these reasons, we believe that EBITDA provides us and investors
with information that is relevant and useful in evaluating our
business.
However,
because EBITDA excludes depreciation and amortization, it does not
measure the capital we require to maintain or preserve our long-lived
assets. In addition, because EBITDA does not reflect interest expense,
it does not take into account the total amount of interest we pay on
outstanding debt nor does it show trends in interest costs due to
changes in our borrowings or changes in interest rates. EBITDA, as
defined by us, may not be comparable to EBITDA as reported by other
companies that do not define EBITDA exactly as we define the term.
Because we use EBITDA to evaluate our financial performance, we
reconcile all EBITDA measures to net income attributable to Red Lion
Hotels Corporation, which is the most comparable financial measure
calculated and presented in accordance with GAAP. EBITDA does not
represent cash provided by operating activities determined in
accordance with GAAP, and should not be considered as an alternative to
operating income or net income attributable to Red Lion Hotels
Corporation determined in accordance with GAAP as an indicator of
performance or as an alternative to cash flows from operating
activities as an indicator of liquidity.
|
|
|
|
|
Red
Lion Hotels Corporation
|
|
|
|
Disclosure
of Special Items
|
|
|
|
(unaudited)
|
|
|
|
|
|
|
During
the fourth quarter 2011, the Company recorded a $6.3 million impairment
charge related to its Red Lion Denver Southeast and its Red Lion
Vancouver at the Quay properties. In addition during the fourth quarter
2011, the Company recorded an impairment to its goodwill of $14.2
million. During the third quarter 2011, the Company recorded a $2.2
million impairment charge related to its Red Lion Colonial Hotel in
Helena, Montana. Additionally, in the second quarter 2011, the Company
recorded a $33.5 million gain from the sale of its Red Lion Hotel on
Fifth Avenue in Seattle, Washington. In the fourth quarter of 2010, the
Company recorded an impairment charge of $5.7 million and a $1.5
million credit both related to the termination of a franchise and
sublease agreement for the Red Lion Hotel Sacramento at Arden Village.
Additionally, in the first quarter of 2010, the Company recorded an
expense of $1.2 million resulting from the separation of the Company's
former President and Chief Executive Officer. As a result, the
operations as presented in the accompanying financial statements for
the three months and year ended December 31, 2011 compared to 2010 do
not reflect a meaningful comparison between periods. The following
table represents a reconciliation of EBITDA from continuing operations
before special items to EBITDA from continuing operations per the
consolidated statement of operations.
|
|
|
|
|
|
|
|
|
|
|
|
Three
months ended December 31,
|
|
|
|
|
2011
|
2010
|
|
|
|
($ in
thousands)
|
EBITDA
from continuing
operations
(1)
|
|
EBITDA
from continuing
operations
(1)
|
|
|
|
|
|
|
|
|
|
Amount
before special items
|
$ 1,702
|
|
$ 760
|
|
|
|
|
|
|
|
|
|
|
Special
items:
|
|
|
|
|
|
|
Asset
impairment charges (2)
|
(6,274)
|
|
(5,733)
|
|
|
|
Goodwill
impairment charge (2)
|
(14,236)
|
|
-
|
|
|
|
Franchise,
sublease termination (5)
|
-
|
|
1,560
|
|
|
|
|
|
|
|
|
|
Amount
per consolidated statement of operations
|
$
(18,808)
|
|
$
(3,413)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year
ended December 31,
|
|
|
|
|
2011
|
2010
|
|
|
|
($ in
thousands)
|
EBITDA
from continuing
operations
(1)
|
|
EBITDA
from continuing
operations
(1)
|
|
|
|
|
|
|
|
|
|
Amount
before special items
|
$
15,598
|
|
$
22,567
|
|
|
|
|
|
|
|
|
|
|
Special
items:
|
|
|
|
|
|
|
Asset
impairment charges (2)
|
(8,430)
|
|
(5,733)
|
|
|
|
Goodwill
impairment charge (2)
|
(14,236)
|
|
-
|
|
|
|
Gain
on asset disposition (3)
|
33,549
|
|
-
|
|
|
|
Franchise,
sublease termination (5)
|
-
|
|
1,560
|
|
|
|
Separation
costs (4)
|
-
|
|
(1,219)
|
|
|
|
|
|
|
|
|
|
Amount
per consolidated statement of operations
|
$
26,481
|
|
$
17,175
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Amount defined on the preceding table "Reconciliation of EBITDA to Net
Income Attributable to Red Lion Hotels Corporation".
|
|
|
|
|
|
(2)
Amounts as included in the line items "Asset impairment" and "Goodwill
impairment" on the accompanying consolidated statements of operations.
|
|
|
|
|
|
(3)
Amount as included in the line item "Loss (gain) on asset dispositions,
net" on the accompanying consolidated statements of operations.
|
|
|
|
|
|
(4)
Amount as included in the line item "Undistributed corporate expenses"
on the accompanying consolidated statements of operations.
|
|
|
|
|
|
(5)
Amounts as included in the following (expense) line items on the
accompanying consolidated statements of operations.
|
|
|
|
Franchise
|
$ (257)
|
|
|
|
|
|
Hotel
facility and land lease
|
1,817
|
|
|
|
|
|
Total
|
$ 1,560
|
|
|
|
|
|
|
|
|
|