Red Lion Hotels Corporation
Aug 3, 2017
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RLH Corporation Reports Second Quarter 2017 Results

DENVER, Aug. 03, 2017 (GLOBE NEWSWIRE) -- Red Lion Hotels Corporation ("RLH Corporation" or the "Company") (NYSE:RLH), a growing hospitality company doing business as RLH Corporation that operates and franchises upscale, midscale and economy hotels, today reported second quarter 2017 results.

Second Quarter 2017 Highlights

"Our team is focused on revenue and profitability improvements in our Franchise segment as a primary driver of our growth strategy.  This focus is producing a significant improvement in our profit margins with consolidated divisional profit margin increasing by 350 basis points in the second quarter of 2017," stated Greg T. Mount, RLH Corporation President and Chief Executive Officer.  "In less than six months we have now installed RevPAK in all new system hotels two months ahead of schedule.  We have provided our hotel owners with enhanced demand channels to help provide a superior return on invested capital.   We believe our new focus on the high margin and lower capital intensive nature of the franchise business is creating value for our shareholders."

Second Quarter 2017 Results

Financial Results

The consolidated GAAP net loss for the second quarter of 2017 was $(0.1) million compared to net income in the prior period of $0.2 million.  Net loss per diluted share for the quarter was break even compared to net income per diluted share of $0.01 for the comparable period of 2016.

For the quarter ended June 30, 2017, Adjusted net income after special items was $0.3 million and $0.01 on a per share basis compared to $0.9 million and $0.04 per share for the prior year period.

Total revenue increased by 8% to $48.5 million from $45.0 million in 2016.  Franchise revenue in the quarter increased to $12.4 million from $4.1 million in the prior year as the result of the increase in hotel units to over 1,100 from 114 one year ago.  Franchise divisional profit increased from $0.7 million in 2016 to $3.6 million, representing half of total Adjusted EBITDA.

Revenues from the Hotels segment were $33.3 million in the second quarter of 2017 compared to $33.8 million in the prior period.  Hotels divisional profit was $8.6 million in 2017 compared to $8.1 million in the prior year period.

Entertainment revenue declined from $7.0 million in 2016 to $2.7 million this year, representing the strong results from Book of Mormon shows in the prior year.

Adjusted EBITDA for the second quarter of 2017 increased to $7.1 million from $6.4 million in 2016.

For the most recent four quarters through June 30, 2017, we have reported total Adjusted EBITDA of $22.3 million.  This total includes 100% of the consolidated results of the Company.  The Company's joint venture partners' pro rata share of this total is $6.8 million, and RLH Corporation's pro rata share is $15.5 million.

Balance Sheet and Liquidity

At June 30, 2017, the Company had $32.2 million in cash and cash equivalents and $12.9 million in restricted cash, representing cash available for future debt service payments pursuant to the joint venture property loan agreements.  As of June 30, 2017, the Company has net outstanding debt of $111.1 million, all of which is borrowed by the Company's joint venture entities. RLH Corporation's pro rata share of the debt is $63.4 million.

2017 Outlook

Based on the strong financial results year to date and the current outlook for the Company's markets, RLH Corporation confirms its guidance ranges as follows:

RLH Corporation is updating its guidance ranges, as follows:

The Company expects to issue up to 414,000 shares of common stock subsequent to September 30, 2017, in satisfaction of its earn-out payment obligations in the 2016 acquisition agreement.  These shares along with up to an additional 276,000 shares expected to be issued after September 30, 2018, are included in the diluted share count for the six months ended June 30, 2017.  Refer to the Company's 2016 Form 10-K, filed March 31, 2017, for a detailed description of the contingent consideration agreement.

Additionally, the Company anticipates maintaining a full valuation allowance against its income tax assets through at least 2018, and therefore ongoing cash income tax expense in 2017 will remain minimal.  The Company expects tax expense of $0.7 to $0.8 million in 2017, the vast majority of which is deferred and will not result in cash tax payments, and the expense is expected to be flat quarter to quarter.

Change in Principal Executive Offices

The Company is moving its headquarters and principal executive office to 1550 Market St. #500, Denver, Colorado, effective August 3, 2017.  As a growing hospitality company with a hotel network that extends throughout the United States and Canada, the Company's management believes having the headquarters in Denver will allow RLH Corporation to be more accessible to its franchisees, partners, vendors and employees. The Company will maintain regional offices in Spokane, Washington and Coral Springs, Florida.

Conference Call Information

RLH Corporation will conduct a conference call on Thursday, August 3rd at 5:00p.m. Eastern Time, to discuss the results for interested investors, analyst and portfolio managers. Hosting the call will be RLH Corporation President & Chief Executive Officer, Greg T. Mount, and Chief Financial Officer, Doug Ludwig.

To participate in the conference call, please dial the following number ten minutes prior to the scheduled time: (877) 407-8289. International callers should dial (201) 689-8341.

This conference call will also be webcast live on www.rlhco.com in the Investor Relations section of the website.  To listen to the live call, please go to the RLH Corporation 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 approximately 8:00p.m. Eastern Time on August 3, 2017 through August 17, 2017, at (877) 660-6853 or (International) (201) 612-7415, using access code 13665266. The replay will also be available shortly after the call on the Company's website.

About RLH Corporation

Red Lion Hotels Corporation is an innovative hotel company doing business as RLH Corporation and focused on the franchising, management and ownership of upscale, midscale and economy hotels.  We focus on maximizing return on invested capital for hotel owners across North America through relevant brands, industry-leading technology and forward-thinking services. For more information, please visit the company's website at www.rlhco.com.

Forward Looking Statements:

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, 2016, and in other documents filed by the Company with the Securities and Exchange Commission.

RED LION HOTELS CORPORATION
Consolidated Statements of Operations
(unaudited)
($ in thousands, except footnotes and share data)
        
 Three Months Ended June 30,    
 2017 2016 $ Change % Change
Revenue:       
Company operated hotels$32,274  $32,209  $65  0.2%
Other revenues from managed properties1,067  1,580  (513) (32.5)
Franchised hotels12,427  4,131  8,296  200.8 
Entertainment2,702  7,047  (4,345) (61.7)
Other61  12  49  408.3 
Total revenues48,531  44,979  3,552  7.9 
Operating expenses:       
Company operated hotels23,688  24,072   (384) (1.6)
Other costs from managed properties1,067  1,580  (513) (32.5)
Franchised hotels8,870  3,464  5,406  156.1 
Entertainment2,733  6,140  (3,407) (55.5)
Other3  9  (6) (66.7)
Depreciation and amortization 4,596  4,037  559  13.8 
Hotel facility and land lease1,202  1,185  17  1.4 
Gain on asset dispositions, net(98) (512) (414) (80.9)
General and administrative expenses4,049  2,695  1,354   50.2 
Acquisition and integration costs186  240  (54) (22.5)
Total operating expenses46,296  42,910  3,386  7.9 
Operating income2,235  2,069  166  8.0 
Other income (expense):       
Interest expense(2,037) (1,487) (550) (37.0)
Other income, net49  74  (25) (33.8)
Total other income (expense)(1,988) (1,413) (575) (40.7)
Income from operations before taxes247  656  (409) (62.3)
Income tax expense172  34  138  405.9 
Net income75  622  (547) (87.9)
Net (income) loss attributable to noncontrolling interest(141) (459) 318  69.3 
Net income (loss) attributable to Red Lion Hotels Corporation$(66) $163  $(229) (140.5)%
        
Earnings (loss) per share - basic$   $0.01     
Earnings (loss) per share - diluted$  $0.01     
        
Weighted average shares - basic23,548   20,155     
Weighted average shares - diluted23,548  20,649     
        
Non-GAAP Financial Measures(1)       
EBITDA$6,880  $6,180  $ 700  11.3%
Adjusted EBITDA$7,069  $6,423  $646  10.1%
Adjusted net income (loss)$264  $865  $(601) (69.5)%
        
(1) 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 Reconciliation of Non-GAAP Financial Measures and Reconciliation of Adjusted Net Income (Loss) to Net Income (Loss).


RED LION HOTELS CORPORATION
Consolidated Statements of Operations
(unaudited)
($ in thousands, except footnotes and share data)
        
 Six Months Ended June 30,    
 2017 2016 $ Change % Change
Revenue:       
Company operated hotels$56,970  $56,358  $612  1.1%
Other revenues from managed properties1,993  2,766  (773) (27.9)
Franchised hotels23,331  7,427  15,904  214.1 
Entertainment6,081  11,078  (4,997) (45.1)
Other116  25  91  364.0 
Total revenues88,491  77,654  10,837  14.0 
Operating expenses:       
Company operated hotels45,166  45,672  (506) (1.1)
Other costs from managed properties1,993  2,766  (773 ) (27.9)
Franchised hotels17,402  6,820  10,582  155.2 
Entertainment5,817  9,577  (3,760) (39.3)
Other7  21  (14) (66.7)
Depreciation and amortization9,139  7,540  1,599  21.2 
Hotel facility and land lease2,403  2,346  57  2.4 
Gain on asset dispositions, net(217) (629) (412) (65.5)
General and administrative expenses7,708  5,751  1,957   34.0 
Acquisition and integration costs11  240  (229) (95.4)
Total operating expenses89,429  80,104  9,325  11.6 
Operating loss(938) (2,450) 1,512  61.7  
Other income (expense):       
Interest expense(3,995) (2,948) (1,047) (35.5)
Other income, net224  292  (68) (23.3)
Total other income (expense)(3,771) (2,656) (1,115) (42.0)
Loss from operations before taxes(4,709) (5,106) 397  7.8 
Income tax expense339  92  247  268.5 
Net loss(5,048) (5,198) 150  2.9 
Net (income) loss attributable to noncontrolling interest1,378  562  816  145.2 
Net loss attributable to Red Lion Hotels Corporation$(3,670) $(4,636) $966  20.8%
        
Earnings (loss) per share - basic$(0.16)  $(0.23)    
Earnings (loss) per share - diluted$(0.17) $(0.23)    
        
Weighted average shares - basic23,509   20,121     
Weighted average shares - diluted24,199  20,121     
        
Non-GAAP Financial Measures(1)       
EBITDA$8,425  $5,382  $ 3,043  56.5%
Adjusted EBITDA$8,536  $5,753  $2,783  48.4%
Adjusted net income (loss)$(4,937) $(4,827) $(110) (2.3)%
        
(1) 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 Reconciliation of Non-GAAP Financial Measures and Reconciliation of Adjusted Net Income (Loss) to Net Income (Loss).


RED LION HOTELS CORPORATION
Consolidated Balance Sheets
(unaudited)
($ in thousands, except share data)
     
  June 30, 2017 December 31, 2016
ASSETS    
Current assets:    
Cash and cash equivalents $32,198  $38,072 
Restricted cash 12,940  9,537 
Accounts receivable, net 14,933   10,852 
Accounts receivable from related parties 1,575  1,865 
Notes receivable, net 1,600  1,295 
Inventories 663  647 
Prepaid expenses and other 4,482  4,491 
Total current assets 68,391  66,759 
Property and equipment, net 206,267  210,732 
Goodwill 12,566   12,566 
Intangible assets 51,823  52,854 
Other assets, net 2,153  1,624 
Total assets $341,200  $344,535 
LIABILITIES    
Current liabilities:    
Accounts payable $6,529   $8,682 
Accrued payroll and related benefits 6,352  4,800 
Other accrued entertainment liabilities 9,215  11,334 
Other accrued liabilities 5,557  4,336 
Long-term debt, due within one year  15,030  1,469 
Contingent consideration for acquisition due to related party, due within one year 6,785  6,768 
Total current liabilities 49,468  37,389 
Long-term debt, due after one year, net of debt issuance costs 96,027  106,862 
Contingent consideration for acquisition due to related party, due after one year 4,443  4,432 
Deferred income and other long term liabilities 1,891  2,293 
Deferred income taxes 5,980  5,716 
Total liabilities 157,809  156,692 
Commitments and contingencies    
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; 23,564,176 and 23,434,480 shares issued and outstanding 235  234 
Additional paid-in capital, common stock 172,350  171,089 
Accumulated deficit (19,657) (15,987)
Total Red Lion Hotels Corporation stockholders' equity 152,928  155,336 
Noncontrolling interest 30,463  32,507 
Total stockholders' equity 183,391  187,843 
Total liabilities and stockholders' equity  $341,200  $344,535 


RED LION HOTELS CORPORATION
Consolidated Statements of Cash Flows
(unaudited)
($ in thousands)
     
  Six Months Ended June 30,
  2017 2016
Operating activities:     
Net loss $(5,048) $(5,198)
Adjustments to reconcile net loss to net cash provided by operating activities:     
Depreciation and amortization 9,139  7,540 
Amortization of debt issuance costs 596  593 
Gain on disposition of property, equipment and other assets, net (217) (629)
Deferred income taxes 264  68 
Equity in investments   (171)
Stock based compensation expense 1,494  1,268 
Provision for doubtful accounts 108  175 
Fair value adjustments to contingent consideration 28   
Change in current assets and liabilities:    
   Accounts receivable (3,953)  (2,470)
   Notes receivable (32) (45)
   Inventories (48)  63 
   Prepaid expenses and other (469) (717)
   Accounts payable (470) 3,308 
   Other accrued liabilities 515  (914)
Net cash provided by operating activities 1,907  2,871 
Investing activities:    
Capital expenditures (5,417) (19,638)
Proceeds from disposition of property and equipment 21  395 
Collection of notes receivable related to property sales 200  52 
Advances on notes receivable (419) (328 )
Proceeds from sales of short-term investments   5,390 
Other, net   78 
   Net cash used in investing activities (5,615) (14,051)
Financing activities:    
Borrowings on long-term debt 2,794  12,325 
Repayment of long-term debt (630)  
Debt issuance costs (29) (67)
Proceeds from sale of interests in joint ventures   3,194 
Distributions to noncontrolling interest (666) (1,797)
Stock-based compensation awards cancelled to settle employee tax withholding  (292) (271)
Other, net 60  68 
   Net cash provided by financing activities 1,237  13,452 
     
Change in cash, cash equivalents and restricted cash:    
Net increase (decrease) in cash, cash equivalents and restricted cash (2,471) 2,272 
Cash, cash equivalents and restricted cash at beginning of period 47,609  35,202 
Cash, cash equivalents and restricted cash at end of period $45,138   $37,474 


RED LION HOTELS CORPORATION
Additional Hotel Statistics
(unaudited)
      
 Company Operated Franchised Total Systemwide
 Hotels Total
Available
Rooms
 Hotels Total
Available
Rooms
 Hotels Total
Available
Rooms
Beginning quantity, January 1, 201720  4,200   1,117  68,900  1,137  73,100 
Newly opened properties    29  1,800  29  1,800 
Terminated properties    (56) (3,800) (56) (3,800)
Ending quantity, June 30, 201720  4,200  1,090  66,900  1,110  71,100 
            
Executed franchise license agreements, six months ended June 30, 2017:           
New franchises    36  2,300  36  2,300 
Renewals / changes of ownership    42  2,800  42  2,800 
Total executed franchise license agreements, six months ended June 30, 2017    78  5,100  78  5,100 


Comparable Hotel Statistics(1)      
 For the Three Months Ended June 30,
 2017  2016
 Average
Occupancy (2)
 ADR (3) RevPAR (4) Average
Occupancy (2)
 ADR (3) RevPAR (4)
Systemwide65.3%  $92.03  $60.09  66.3% $89.19 $59.11
             
Change from prior comparative period:Average
Occupancy (2)
 ADR (3) RevPAR (4)      
Systemwide(100.0)bps  3.2%  1.7%      


 For the Six Months Ended June 30,
  2017  2016
 Average
Occupancy (2)
 ADR (3) RevPAR (4)  Average
Occupancy (2)
 ADR (3) RevPAR (4)
Systemwide59.8%  $88.17  $52.68  60.7% $85.17 $51.67
             
Change from prior comparative period:Average
Occupancy (2)
 ADR (3) RevPAR (4)      
Systemwide(90.0)bps  3.5%  2.0%      


(1)  Certain operating results for the periods included in this report are shown on a comparable hotel basis. Comparable hotels are defined as hotels that were in the system for at least one full calendar year as of the beginning of the current year under materially similar operations.
(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 Operations and Data From 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 were operated by the Company for at least one full calendar year as of the beginning of the current year other than hotels for which comparable results were not available. Comparable results excludes two hotels, one of which was sold and one which was closed in the fourth quarter of 2016.  In addition, one owned property and one managed property were opened during the second quarter of 2016 and are excluded as these properties had not been open at least one year as of the beginning of the current year.
 
RLH Corporation utilizes 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. The Company believes the comparable measures 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 June 30, Six Months Ended June 30,
  2017 2016 2017 2016
Company operated hotel revenue $ 32,274  $32,209  $56,970  $56,358 
less: revenue from sold and closed hotels   (880)   (1,453)
less: revenue from hotels without comparable results (1,190) (567) (2,221) (607)
Comparable company operated hotel revenue $31,084  $30,762  $54,749  $54,298 
         
Company operated hotel operating expenses $23,688  $24,072  $45,166  $45,672 
less: operating expenses from sold and closed hotels   (570)   (1,067)
less: operating expenses from hotels without comparable results (1,080) (1,150) (2,037) (1,618)
Comparable company operated hotel operating expenses $22,608   $22,352  $43,129  $42,987 
         
Company operated hotel direct operating profit $8,586  $8,137  $11,804  $10,686 
less: operating profit from sold and closed hotels   (310)   (386)
less: operating profit from hotels without comparable results (110) 583  (184) 1,011 
Comparable company operated hotel direct profit $ 8,476  $8,410  $11,620   $11,311 
Comparable company operated hotel direct margin % 27.3% 27.3% 21.2% 20.8%


RED LION HOTELS CORPORATION
Reconciliation of Non-GAAP Financial Measures
(unaudited)
($ in thousands)
         
EBITDA is defined as net income (loss), before interest, taxes, depreciation and amortization. The Company believes it is a useful financial performance measure due to the significance of the long-lived assets and level of indebtedness.

Adjusted EBITDA and Adjusted net income (loss) are additional measures of financial performance. The Company believes 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. RLH Corporation utilizes these measures because management finds them a useful tool to calculate more meaningful comparisons of past, present and future operating results and as a means to evaluate the results of core, ongoing operations. The Company believes 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 the industry may calculate EBITDA and, in particular, Adjusted EBITDA and Adjusted net income (loss) differently than the Company does 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 June 30, Six Months Ended June 30,
  2017 2016 2017 2016
Net income (loss) $75  $622  $(5,048) $(5,198)
Depreciation and amortization 4,596  4,037  9,139  7,540 
Interest expense 2,037  1,487  3,995  2,948 
Income tax expense (benefit) 172  34  339  92 
EBITDA 6,880  6,180  8,425  5,382 
Acquisition and integration costs (1) 186  240  11  240 
Employee separation and transition costs (2) 3  396  100  396 
Reserve for environmental cleanup (3)       128 
Gain on asset dispositions (4)   (393)    (393)
Adjusted EBITDA 7,069  6,423   8,536  5,753 
Adjusted EBITDA attributable to noncontrolling interests (2,296) (2,300) (2,968) (2,982)
Adjusted EBITDA attributable to Red Lion Hotels Corporation$4,773  $4,123  $5,568  $2,771 
         
(1)  On September 30, 2016 RLH Corporation acquired Vantage. Net expenses associated with the acquisition and changes in the fair value of contingent consideration are included within Acquisition and integration costs on the Consolidated Statements of Operations.
(2)  During the second quarter of 2016, RLH Corporation recorded separation costs of a former Executive Vice President and Chief Financial Officer and other legal and consulting services associated with the CFO transition. The costs recorded for the three and six months ended June 30, 2017 consisted of legal and consulting services associated with the CFO transition.
(3)  In the first quarter of 2016, a reserve was recorded for environmental cleanup at one of the hotel properties.
(4)  In the second quarter of 2016, RLH Corporation recorded a gain on sale of intellectual property, net of brokerage fees, of $0.4 million, included within Gain on asset dispositions, net on the Consolidated Statements of Operations.


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 (loss) to net income (loss) for the periods presented:
         
  Three Months Ended June 30, Six Months Ended June 30 ,
  2017 2016 2017 2016
 Net income (loss) $75  $622  $(5,048) $(5,198)
Acquisition and integration costs (1) 186  240  11  240 
Employee separation and transition costs (2) 3  396  100  396 
Reserve for environmental cleanup (3)        128 
Gain on asset dispositions (4)   (393)   (393)
Adjusted net income (loss) $264  $865  $(4,937) $(4,827)
         
Adjusted net income (loss) per share $0.01  $0.04  $(0.20) $(0.24)
Weighted average shares - basic 23,548  20,155  23,509   20,121 
Weighted average shares - diluted (5) 24,618  20,649  24,199  20,121 
         
(1)  On September 30, 2016 RLH Corporation acquired Vantage. Net expenses associated with the acquisition and changes in the fair value of contingent consideration are included within Acquisition and integration costs on the Consolidated Statements of Operations.
(2)  During the second quarter of 2016, RLH Corporation recorded separation costs of a former Executive Vice President and Chief Financial Officer and other legal and consulting services associated with the CFO transition. The costs recorded for the three and six months ended June 30, 2017 consisted of legal and consulting services associated with the CFO transition.
(3)  In the first quarter of 2016, a reserve was recorded for environmental cleanup at one of the hotel properties.
(4)  In the second quarter of 2016, RLH Corporation recorded a gain on sale of intellectual property, net of brokerage fees, of $0.4 million, included within Gain on asset dispositions, net on the Consolidated Statements of Operations.
(5)  For Adjusted net income (loss) per share for the six months ended June 30, 2017, weighted average diluted shares was equal to weighted average basic shares due to the Adjusted net loss incurred for the period. Because Acquisition and integration costs (which includes the share component of the change in fair value of the Vantage contingent consideration) was added back to calculate Adjusted net income (loss) for the period, the 690,000 shares associated with the Vantage contingent consideration would be antidilutive and are therefore excluded from weighted average diluted shares.

 

Investor Relations Contact



Amy Koch

O: 509-777-6417

C: 917-579-5012

Email: investorrelations@rlhco.com

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Source: RLHC (Red Lion Hotels Corporation)

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