Execution of Key Strategic Elements Positions Red Lion Brand for
Future Growth SPOKANE, Wash., Oct. 27 /PRNewswire-FirstCall/ -- Red
Lion Hotels Corporation (NYSE:RLH) today announced results for the
third quarter and the nine months ended September 30, 2005. Key
Third Quarter Results -- RevPAR at system wide hotels increased by
5.5%, to $55.90 -- Revenues from continuing operations increased to
$47.2 million -- Net income from continuing operations increased to
$2.8 million -- Net income applicable to common shareholders
increased to $6.8 million -- EBITDA from continuing operations
increased to $10.8 million -- Completed the sale of six hotel
properties -- Changed the company name to Red Lion Hotels
Corporation -- Launched a new brand image and growth initiatives
"This was a very active and positive quarter for our company. We
demonstrated our commitment to the Red Lion brand by changing our
company name, introducing our new brand image and announcing our
plan to expand to 100 markets. We completed the sale of six
non-core hotel properties under our asset sale program and our
capital reinvestment program is on track. Renovations progressed at
three of our company-owned hotels and we are pleased with the gains
in ADR achieved at these hotels. The results were in line with our
expectations and validate our renovation strategy," said Mr. Arthur
M. Coffey, President and CEO of Red Lion Hotels Corporation.
Financial Results Total revenues from continuing operations during
the quarter were $47.2 million, up 0.3% from the same quarter of
2004. Revenues in the hotel segment were up 1.7% to $43.0 million.
This increase was due to a 4.2% increase in RevPAR, which was
partially offset by a decline in banquet revenue from reduced group
business. Franchise and management revenues increased 15.9% to $0.8
million. Revenues in the entertainment segment were down $0.7
million or 27.8%, due to the fact that no shows were presented
during the quarter, compared to four shows in the same quarter last
year. Revenues in the real estate segment grew modestly to $1.3
million. EBITDA from continuing operations was $10.8 million, up
4.6% from the same quarter of 2004, reflecting a slightly improved
profit margin. Net income from continuing operations was $2.8
million, or $0.22 per fully diluted share, up 6.1% from the same
quarter last year. Net income applicable to common shareholders was
$6.8 million, or $0.51 per fully diluted share, up 93.2% from the
same quarter last year, and includes a $2.7 million net after-tax
gain from the sale of non-core hotel properties. Total revenues
from continuing operations for the nine months ended September 30,
2005 were $126.9 million, up 1.7% from the same period last year.
EBITDA from continuing operations increased 2.7%, to $20.1 million.
Net income from continuing operations was $0.6 million, or $0.05
per fully diluted share, down 53.2%% from the same period last
year. Net income applicable to common shareholders was $5.4
million, or $0.41 per fully diluted share, up 240% from the same
period last year, and includes a $2.7 million net after-tax gain
from the sale of non-core hotel properties. Hotel Operations In the
third quarter of 2005, RevPAR (revenue per available room) for
comparable system-wide hotels (hotels owned, leased, managed and
franchised for at least one year) increased by 5.5% over the same
quarter of the previous year, to $55.90. This increase was
primarily the result of a 4.7% increase in ADR (average daily rate)
to $78.92, and a 0.6 point increase in average occupancy. RevPAR
from continuing operations at owned and leased hotels increased by
4.2%, driven by a 4.7% increase in ADR and offset by a 0.3 point
decline in average occupancy. Average occupancy has not been
adjusted to reflect out-of-service rooms related to the renovation
program. Hotel revenues from continuing operations increased 1.7%,
to $43.0 million. This was due to the 4.2% increase in RevPAR, and
partially offset by the previously discussed decline in banquet
revenue associated with reduced group business. Hotel operating
expenses increased 1.6%, to $31.4 million. Hotel gross margin was
unchanged at 27.0%. "This marks the seventh consecutive quarter of
RevPAR growth at Red Lion Hotels. We continued to improve our hotel
metrics despite the potential for disruptions related to our
renovation program. This demonstrates that our plan to minimize
disruption and displacement at locations undergoing renovation is
proceeding successfully," commented John Taffin, Executive Vice
President, Hotel Operations. "We also continued to focus on
elevating our service standards. Our newly expanded service
training program is designed to reinforce the high standards of
personal connection and service that represent the 'Red Lion Way.'"
The company's new service training program will be implemented
across all hotels in the Red Lion network, beginning with the newly
renovated hotels. This first phase of the program is designed to
capitalize on the synergies between the physical enhancements made
to the hotels and the company's increased focus on connecting with
guests on a personal level. The program will be instituted at all
owned, managed and franchised hotels. Capital Reinvestment Program
and Renovation Update In the quarter, the company continued
renovations at the Red Lion Hotel Seattle Airport in Washington,
Red Lion Hotel Boise Downtowner in Idaho and the Red Lion Hotel
Kelso in Washington. Third quarter results from these three hotels
showed significant growth in ADR that contributed to their
aggregate RevPAR growth, despite lower occupancy rates caused by
renovated rooms being out of service. Renovations at these hotels
are scheduled to be completed during the fourth quarter of 2005. In
October, renovations commenced at additional hotels and by
year-end, 17 hotels will either be undergoing or have completed the
renovation process. The company expects rate increases at these
hotels, followed by growth in average occupancy as the upgrades are
completed and all of the rooms are made available. The full scope
of this $40 million capital reinvestment plan involves the upgrade
of 31 company-owned Red Lion Hotels by mid-2006, giving the company
a strong network of upgraded hotels as it enters the high travel
season in the summer of 2006. Recent Events In the quarter, the
company completed the sales of six hotel properties generating
aggregate gross proceeds of $25.4 million. In addition, the company
has non-contingent sale agreements in place for another hotel and
the Crescent Court commercial complex, which are expected to close
in the fourth quarter and generate gross proceeds of $24.2 million.
The company also has contingent agreements for the sale of two
other hotels. The company is selling these non-core assets to
finance its $40 million capital reinvestment program. There are two
remaining hotel properties that the company continues to market
under this program. In July, the company completed the sale of a
fifty percent interest in the Kalispell Center retail and hotel
complex in Kalispell, Montana. The purchaser was GVD Commercial
Properties, Inc., an experienced developer that will help drive a
multi-phase expansion and renovation of the retail property and
allow the company to focus on its core hotel business. Also in July
2005, Red Lion launched its newly designed website,
http://www.redlion.com/, another key element in the company's plan
to enhance its infrastructure. Among the site's many
industry-leading tools and functions are reference rates that give
a guest an idea of costs even if the guest does not know travel
dates, the ability to compare Red Lion's rates against rates on
other travel sites, online access to a live reservation agent and
online redemption of the company's proprietary "Only4Me Web Deals."
After focusing for the past several years on developing a modern,
scalable and efficient infrastructure, the company unveiled its new
and revitalized brand image in September 2005. To demonstrate its
commitment to the Red Lion brand, the company also changed its name
from WestCoast Hospitality Corporation (NYSE:WEH) to Red Lion
Hotels Corporation (NYSE:RLH). In addition, the company adopted a
new corporate logo which communicates the strength, vitality and
aggressiveness that represent today's Red Lion. The new logo is
available for viewing at http://www.redlion.com/graphics. Also in
September 2005, the company announced its growth strategy that
leverages its brand equity in the Western U.S. to expand the Red
Lion brand to more than 100 markets over the next five years. The
initial focus of the expansion program will be in major cities in
California, Arizona, Colorado, Minnesota and Texas. At the end of
September 2005, the company highlighted the revitalized Red Lion
brand and launched its new franchise initiative at The Lodging
Conference in Phoenix, Arizona. "This is an exciting time for our
company. During the quarter, we continued to execute on our plan to
rejuvenate the Red Lion brand and implement our growth strategy. We
are laying the foundation that will support our growth, and we will
continue to implement our strategies to expand the Red Lion brand,"
Coffey concluded. Conference Call The company will host a
conference call at 11:00 a.m. PDT (2:00 p.m. EDT) on Thursday,
October 27, 2005 to discuss earnings for the third quarter of 2005.
To participate in the conference call, please dial the following
number five to ten minutes prior to the scheduled conference call
time: 888-639-6205. International callers should dial 703-925-2608.
There is no pass code required for this call. This conference call
will also be broadcast live over the Internet and can be accessed
by all interested parties at http://www.redlion.com/, in the
Investor Relations portion 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, download, and install
any necessary audio software. For those unable to participate
during the live broadcast, a replay will be available shortly after
the call on the Red Lion website for 90 days. About Red Lion Hotels
Corporation Red Lion Hotels Corporation is a hospitality and
leisure company primarily engaged in the ownership, management,
development and franchising of upper mid-scale, full service hotels
under its Red Lion(R) brand. The RLH hotel network is comprised of
over 66 hotels located in 11 states and one Canadian province, with
more than 11,600 rooms and 564,000 square feet of meeting space.
The company also operates an entertainment and event ticket
distribution business and a real estate business that develops,
manages and brokers sales and leases of commercial real estate. The
company is headquartered in Spokane, WA. For more information,
please visit our website at http://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 and managing and leasing properties
owned by third parties; 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 2004 fiscal year and in other documents
filed by the company with the Securities and Exchange Commission.
Contact: Red Lion Hotels Corporation Julie Langenheim, Investor
Relations Manager 509-777-6322 or CCG Investor Relations Crocker
Coulson, President 310-231-8600 ext. 103 Red Lion Hotels
Corporation Consolidated Statements of Operations (unaudited) ($ in
thousands, except footnotes) Three months ended September 30, 2005
2004 $ Change % Change Revenue: Hotels $43,021 $42,295 $726 1.7%
Franchise and management 810 699 111 15.9% Entertainment 1,828
2,533 (705) -27.8% Real estate 1,258 1,234 24 1.9% Other 298 296 2
0.7% Total revenues 47,215 47,057 158 0.3% Operating expenses:
Hotels 31,417 30,920 497 1.6% Franchise and management 145 360
(215) -59.7% Entertainment 1,607 2,349 (742) -31.6% Real estate 961
799 162 20.3% Other 248 195 53 27.2% Depreciation and amortization
2,950 2,657 293 11.0% Hotel facility and land lease 1,718 1,728
(10) -0.6% Gain on asset dispositions, net (550) (133) (417)
-313.5% Undistributed corporate expenses 1,058 672 386 57.4% Total
expenses 39,554 39,547 7 0.0% Operating income 7,661 7,510 151 2.0%
Other income (expense): Interest expense (3,607) (3,661) 54 1.5%
Minority interest in partnerships, net (168) (55) (113) -205.5%
Other income, net 374 226 148 65.5% Income from continuing
operations before income taxes 4,260 4,020 240 6.0% Income tax
expense 1,449 1,371 78 5.7% Net income from continuing operations
2,811 2,649 162 6.1% Discontinued operations: Income from
operations of discontinued business units, net of income tax
expense of $685 and $457 1,245 849 396 46.6% Net gain on disposal
of discontinued business units, net of income tax expense of $1,487
2,702 -- 2,702 Income from discontinued operations 3,947 849 3,098
364.9% Net income and income applicable to common shareholders
$6,758 $3,498 $3,260 93.2% EBITDA(1) $17,248 $12,690 $4,558 35.9%
EBITDA as a percentage of revenues(2) 31.5% 22.7% EBITDA from
continuing operations(1) $10,817 $10,338 $479 4.6% EBITDA from
continuing operations(2) as a percentage of revenues 22.9% 22.0%
(1) The definition of "EBITDA" and how that measure relates to net
income is discussed further in this release under Non-GAAP
Financial Measures. EBITDA represents net income (or loss) before
interest expense, income tax benefit or expense, depreciation, and
amortization. EBITDA is not intended to represent net income as
defined by generally accepted accounting principles in the United
States and such information should not be considered as an
alternative to net income, cash flows from operations or any other
measure of performance prescribed by generally accepted accounting
principles in the United States. We utilize EBITDA because
management believes that investors find it to be 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
on- going operations. EBITDA from continuing operations is
calculated in the same manner, but excludes the operating
activities of business units identified as discontinued. (2) The
calculation of EBITDA as a percentage of revenues is based upon
total operating revenues, from both continuing and discontinued
operations, of $54,819,000 and $55,987,000 for the three months
ended September 30, 2005 and 2004, respectively. EBITDA from
continuing operations as a percentage of revenues is based upon the
operating results of continuing business units as presented in the
statements. Red Lion Hotels Corporation Earnings Per Share and
Hotel Statistics (unaudited) (shares in thousands) Three months
ended September 30, 2005 2004 Earnings per common share: Basic
Income applicable to common shareholders before discontinued
operations(1) $0.22 $0.20 Income from discontinued operations 0.30
0.07 Income applicable to common shareholders $0.52 $0.27 Diluted
Income applicable to common shareholders before discontinued
operations(1) $0.22 $0.20 Income on discontinued operations 0.29
0.06 Income applicable to common shareholders $0.51 $0.26 Weighted
average shares - basic 13,120 13,059 Weighted average shares -
diluted(2) 13,445 13,345 Key Comparable Hotel Statistics: Three
months ended September 30, 2005 2004 $ Change % Change Combined
(owned, leased, managed and franchised)(3) Average occupancy(4)
70.8% 70.3% ADR(5) $78.92 $75.39 $3.53 4.7% RevPAR(6) $55.90 $52.97
$2.93 5.5% (1) The net income used to calculate the net earnings
per share applicable to common shareholders before discontinued
operations includes all dividends on the retired cumulative
preferred shares if applicable for the period presented. (2) For
the three months ended September 30, 2005, 39,113 outstanding
options to purchase common shares were considered dilutive, of the
1,018,895 options outstanding as of that date. For the three months
ended September 30, 2004, none of the 593,033 options to purchase
common shares outstanding as of that date were considered dilutive.
In addition, the 286,161 convertible operating partnership ("OP")
units were considered dilutive and are therefore included in the
calculation of diluted weighted average shares for both those same
periods. (3) Includes all hotels owned, leased, managed and
franchised for greater than one year by Red Lion Hotels
Corporation. No adjustment has been made for hotels classified as
discontinued operations. (4) Average occupancy represents total
paid rooms divided by total available rooms. Total available rooms
represents the number of rooms available multiplied by the number
of days in the reported period. (5) Average daily rate ("ADR")
represents total room revenues divided by the total number of paid
rooms occupied by hotel guests. (6) Revenue per available room
("RevPAR") represents total room and related revenues divided by
total available rooms. Red Lion Hotels Corporation Consolidated
Statements of Operations (unaudited) ($ in thousands, except
footnotes) Nine months ended September 30, 2005 2004 $ Change %
Change Revenue: Hotels $112,786 $109,726 $3,060 2.8% Franchise and
management 2,228 2,021 207 10.2% Entertainment 7,246 7,951 (705)
-8.9% Real estate 3,716 4,171 (455) -10.9% Other 931 870 61 7.0%
Total revenues 126,907 124,739 2,168 1.7% Operating expenses:
Hotels 89,503 87,422 2,081 2.4% Franchise and management 408 823
(415) -50.4% Entertainment 6,396 6,998 (602) -8.6% Real estate
2,689 2,504 185 7.4% Other 709 607 102 16.8% Depreciation and
amortization 8,671 7,733 938 12.1% Hotel facility and land lease
5,203 5,506 (303) -5.5% Gain on asset dispositions, net (857) (529)
(328) -62.0% Undistributed corporate expenses 3,061 2,305 756 32.8%
Total expenses 115,783 113,369 2,414 2.1% Operating income 11,124
11,370 (246) -2.2% Other income (expense): Interest expense
(10,806) (10,164) (642) -6.3% Minority interest in partnerships,
net (153) (11) (142) 1290.9% Other income, net 459 480 (21) -4.4%
Income from continuing operations before income taxes 624 1,675
(1,051) -62.7% Income tax expense (benefit) 33 411 (378) 92.0% Net
income from continuing operations 591 1,264 (673) -53.2%
Discontinued operations: Income from operations of discontinued
business units, net of income tax expense of $1,137 and $372 2,073
691 1,382 -200.0% Net gain on disposal of discontinued business
units, net of income tax expense of $1,487 2,702 -- 2,702 Income
from discontinued operations 4,775 691 4,084 591.0% Net income
5,366 1,955 3,411 174.5% Preferred stock dividend -- (377) 377
100.0% Income applicable to common shareholders $5,366 $1,578
$3,788 240.1% EBITDA(1) $28,638 $23,764 $4,874 20.5% EBITDA as a
percentage of revenues(2) 19.5% 16.2% EBITDA from continuing
operations(1) $20,101 $19,572 $529 2.7% EBITDA from continuing
operations (2) as a percentage of revenues 15.8% 15.7% (1) The
definition of "EBITDA" and how that measure relates to net income
is discussed further in this release under Non-GAAP Financial
Measures. EBITDA represents net income (or loss) before interest
expense, income tax benefit or expense, depreciation, and
amortization. EBITDA is not intended to represent net income as
defined by generally accepted accounting principles in the United
States and such information should not be considered as an
alternative to net income, cash flows from operations or any other
measure of performance prescribed by generally accepted accounting
principles in the United States. We utilize EBITDA because
management believes that investors find it to be 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
on- going operations. EBITDA from continuing operations is
calculated in the same manner, but excludes the operating
activities of business units identified as discontinued. (2) The
calculation of EBITDA as a percentage of revenues is based upon
total operating revenues, from both continuing and discontinued
operations, of $147,057,000 and $146,553,000 for the nine months
ended September 30, 2005 and 2004, respectively. EBITDA from
continuing operations as a percentage of revenues is based upon the
operating results of continuing business units as presented in the
statements. Red Lion Hotels Corporation Earnings Per Share and
Hotel Statistics (unaudited) (shares in thousands) Nine months
ended September 30, 2005 2004 Earnings per common share: Basic
Income applicable to common shareholders before discontinued
operations(1) $0.05 $0.07 Income on discontinued operations 0.36
0.05 Income applicable to common shareholders $0.41 $0.12 Diluted
Income applicable to common shareholders before discontinued
operations(1) $0.05 $0.07 Income on discontinued operations 0.36
0.05 Income applicable to common shareholders $0.41 $0.12 Weighted
average shares - basic 13,096 13,043 Weighted average shares -
diluted(2) 13,317 13,330 Key Comparable Hotel Statistics: Nine
months ended September 30, 2005 2004 $ Change % Change Combined
(owned, leased, managed and franchised)(3) Average occupancy(4)
62.8% 61.1% ADR(5) $74.49 $72.36 $2.13 2.9% RevPAR(6) $46.78 $44.19
$2.59 5.9% (1) The net income or loss used to calculate the net
earnings or loss per share applicable to common shareholders before
discontinued operations includes all dividends on the retired
cumulative preferred shares if applicable for the period presented.
(2) For the nine months ended September 30, 2005, 28,606
outstanding options to purchase common shares were considered
dilutive, of the 1,018,895 options outstanding as of that date. For
the nine months ended September 30, 2004, 752 options of the
593,033 options to purchase common shares outstanding as of that
date were considered dilutive. In addition, the 286,161 convertible
operating partnership ("OP") units were considered dilutive and are
therefore included in the calculation of diluted weighted average
shares for both those same periods. (3) Includes all hotels owned,
leased, managed and franchised for greater than one year by Red
Lion Hotels Corporation. No adjustment has been made for hotels
classified as discontinued operations. (4) Average occupancy
represents total paid rooms divided by total available rooms. Total
available rooms represents the number of rooms available multiplied
by the number of days in the reported period. (5) Average daily
rate ("ADR") represents total room revenues divided by the total
number of paid rooms occupied by hotel guests. (6) Revenue per
available room ("RevPAR") represents total room and related
revenues divided by total available rooms. Red Lion Hotels
Corporation Consolidated Balance Sheets (unaudited) ($ in
thousands, except share data) September 30, December 31, 2005 2004
Assets: Current assets: Cash and cash equivalents $27,327 $9,577
Restricted cash 8,863 4,092 Accounts receivable, net 10,053 8,464
Inventories 1,792 1,831 Prepaid expenses and other 2,147 3,286
Assets held for sale: Assets of discontinued operations 42,567
61,757 Other assets held for sale 715 1,599 Total current assets
93,464 90,606 Property and equipment, net 229,080 223,132 Goodwill
28,042 28,042 Intangible assets, net 13,050 13,641 Other assets,
net 8,727 9,191 Total assets $372,363 $364,612 Liabilities: Current
liabilities: Accounts payable $4,128 $4,841 Accrued payroll and
related benefits 5,068 4,597 Accrued interest payable 672 700
Advance deposits 250 188 Other accrued expenses 14,948 7,322
Long-term debt, due within one year 3,581 7,455 Liabilities of
discontinued operations 14,058 22,879 Total current liabilities
42,705 47,982 Long-term debt, due after one year 127,145 125,756
Deferred income 7,958 8,524 Deferred income taxes 15,977 15,992
Minority interest in partnerships 9,044 2,548 Debentures due Red
Lion Hotels Capital Trust 47,423 47,423 Total liabilities 250,252
248,225 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;
13,127,200 and 13,064,626 shares issued and outstanding 131 131
Additional paid-in capital, common stock 84,825 84,467 Retained
earnings 37,155 31,789 Total stockholders' equity 122,111 116,387
Total liabilities and stockholders' equity $372,363 $364,612 Red
Lion Hotels Corporation Consolidated Statement of Cash Flows
(unaudited) ($ in thousands) Nine months ended September 30, 2005
2004 Operating activities: Net income $5,366 $1,955 Adjustments to
reconcile net income to net cash provided by operating activities:
Depreciation and amortization 8,774 9,574 Gain on disposition of
property, equipment and other assets, net (752) (530) Gain on
disposition of discontinued operations, net (4,189) -- Deferred
income tax provision (15) 2,047 Minority interest in partnerships
153 (68) Equity in investments 53 (89) Compensation expense related
to stock issuance 138 -- Provision for doubtful accounts 160 188
Change in current assets and liabilities: Restricted cash (2,105)
320 Accounts receivable (1,920) (1,635) Inventories 80 103 Prepaid
expenses and other 1,061 (742) Accounts payable (682) (1,443)
Accrued payroll and related benefits 261 1,185 Accrued interest
payable (41) 25 Other accrued expenses and advance deposits 7,818
3,411 Net cash provided by operating activities 14,160 14,301
Investing activities: Purchases of property and equipment (13,615)
(19,069) Proceeds from disposition of property and equipment 4,808
198 Proceeds from disposition of discontinued operations 14,938 --
Proceeds from disposition of investment -- 94 Investment in Red
Lion Hotels Capital Trust -- (1,423) Advances to Red Lion Hotels
Capital Trust (20) (2,116) Distributions from equity investee 117
449 Proceeds from collections under note receivable 493 1,725
Other, net 82 30 Net cash provided by (used in) investing
activities 6,803 (20,112) Financing activities: Proceeds from note
payable to bank 50 11,000 Repayment of note payable to bank (50)
(11,000) Proceeds from debenture issuance -- 47,423 Repurchase and
retirement of preferred stock -- (29,412) Proceeds from long-term
debt 3,875 83 Repayment of long-term debt (7,164) (3,335) Proceeds
from issuance of common stock under employee stock purchase plan
151 113 Preferred stock dividend payments -- (1,011) Proceeds from
option exercises 69 140 Additions to deferred financing costs (318)
(50) Net cash provided by (used in) financing activities (3,387)
13,951 Net cash in discontinued operations 174 (224) Change in cash
and cash equivalents: Net increase (decrease) in cash and cash
equivalents 17,750 7,916 Cash and cash equivalents at beginning of
period 9,577 7,884 Cash and cash equivalents at end of period
$27,327 $15,800 Red Lion Hotels Corporation Additional Hotel
Statistics (unaudited) System Hotels as of September 30, 2005
Meeting Space Hotels Rooms (sq. ft.) Owned or Leased Hotels:(1) Red
Lion Hotels 33 6,089 308,828 WestCoast Hotels 3 692 40,500 36 6,781
349,328 Managed Hotels: Red Lion Hotels 1 150 5,234 WestCoast
Hotels 1 72 1,800 Other Brands 1 254 36,000 3 476 43,034 Franchised
Hotels: Red Lion Hotels 26 4,138 156,801 WestCoast Hotels 1 257
15,000 27 4,395 171,801 Total 66 11,652 564,163 Comparable Hotel
Statistics(2) Three months ended Three months ended September 30,
2005 September 30, 2004 Average Average Occupancy(3) ADR(4)
RevPAR(5)Occupancy(3) ADR(4)RevPAR(5) Owned or Leased Hotels:
Continuing Operations 73.0% $79.47 $57.99 73.3% $75.90 $55.64
Discontinued Operations 63.8% 69.20 44.16 59.8% 65.63 39.28 71.6%
78.13 55.96 71.3% 74.64 53.24 Combined System Wide(6) 70.8% $78.92
$55.90 70.3% $75.39 $52.97 Red Lion Hotels (Owned, Leased, Managed
and Franchised)(7) 70.6% $77.81 $54.96 70.8% $74.51 $52.72 Nine
months ended Nine months ended September 30, 2005 September 30,
2004 Average Average Occupancy(3) ADR(4) RevPAR(5)Occupancy(3)
ADR(4)RevPAR(5) Owned or Leased Hotels: Continuing Operations 64.8%
$74.35 $48.16 62.8% $72.20 $45.35 Discontinued Operations 48.2%
65.23 31.47 46.7% 62.95 29.39 62.3% 73.32 45.71 60.5% 71.15 43.01
Combined System Wide(6) 62.8% $74.49 $46.78 61.1% $72.36 $44.19 Red
Lion Hotels (Owned, Leased, Managed and Franchised)(7) 63.6% $73.31
$46.62 61.9% $71.46 $44.26 (1) Statistics include 5 hotels
identified as discontinued business units, aggregating 993 rooms
and 50,000 square feet of meeting space. (2) Includes all hotels
owned, leased, managed and franchised for greater than one year by
Red Lion Hotels Corporation. (3) Average occupancy represents total
paid rooms divided by total available rooms. Total available rooms
represents the number of rooms available multiplied by the number
of days in the reported period. (4) Average daily rate ("ADR")
represents total room revenues divided by the total number of paid
rooms occupied by hotel guests. (5) Revenue per available room
("RevPAR") represents total room and related revenues divided by
total available rooms. (6) Includes all hotels owned, leased,
managed and franchised for greater than one year by Red Lion Hotels
Corporation. No adjustment has been made for hotels classified as
discontinued operations. (7) Includes all hotels owned, leased,
managed and franchised for greater than one year operated under the
Red Lion brand name. No adjustment has been made for hotels
classified as discontinued operations. Red Lion Hotels Corporation
Reconciliation of EBITDA to Net Income (unaudited) ($ in thousands)
The following is a reconciliation of EBITDA and EBITDA from
continuing operations to net income for the periods presented:
Three months ended Nine months ended September 30, September 30,
2005 2004 2005 2004 EBITDA from continuing operations $10,817
$10,338 $20,101 $19,572 Income tax expense - continuing operations
(1,449) (1,371) (33) (411) Interest expense - continuing operations
(3,607) (3,661) (10,806) (10,164) Depreciation and amortization -
continuing operations (2,950) (2,657) (8,671) (7,733) Net income
from continuing operations 2,811 2,649 591 1,264 Income from
discontinued operations 3,947 849 4,775 691 Net income $6,758
$3,498 $5,366 $1,955 EBITDA $17,248 $12,690 $28,638 $23,764 Income
tax expense (3,621) (1,827) (2,662) (783) Interest expense (3,884)
(4,082) (11,836) (11,452) Depreciation and amortization (2,985)
(3,283) (8,774) (9,574) Net income $6,758 $3,498 $5,366 $1,955
NON-GAAP FINANCIAL MEASURES EBITDA is defined as net income (or
loss), 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 and other financial
performance measures provided in accordance with generally accepted
accounting principles in the United States ("GAAP"). EBITDA from
continuing operations is calculated in the same manner, but
excludes the operating results of business units identified as
discontinued under GAAP. We use EBITDA to measure the financial
performance of our owned and leased hotels 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, which is the most comparable
financial measure calculated and presented in accordance with GAAP.
EBITDA does not represent cash generated from operating activities
determined in accordance with GAAP, and should not be considered as
an alternative to operating income or net income 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. DATASOURCE: Red Lion Hotels Corporation CONTACT:
Julie Langenheim, Investor Relations Manager of Red Lion Hotels
Corporation, +1-509-777-6322, or ; or Crocker Coulson, President of
CCG Investor Relations, +1-310-231-8600, ext. 103, or , for Red
Lion Hotels Corporation Web site: http://www.redlion.com/
Copyright
Westcoast Hospitality (NYSE:WEH)
Historical Stock Chart
From Sep 2024 to Oct 2024
Westcoast Hospitality (NYSE:WEH)
Historical Stock Chart
From Oct 2023 to Oct 2024