Red Lion Hotels Corp. (RLH) filed Quarterly Report for the period ended 2009-09-30.
WestCoast Hospitality Corporation serves the western United States with thousands of hotel rooms in different hotels. WestCoast providesentertainment services through TicketsWest.com which encompasses a computerized ticket company with operations in Washington Oregon Idaho Montana and Colorado and WestCoast Entertainment a Broadway and special event presenting company. TicketsWest.com services are available through its website at www.TicketsWest.com stand-alone outlets and a 24-hour toll free call center. (PRESS RELEASE) Red Lion Hotels Corp. has a market cap of $93.7 million; its shares were traded at around $5.16 with a P/E ratio of 129.1 and P/S ratio of 0.4.
Highlight of Business Operations:
Physical Assets - Our assets provide us with a stable, positive cash flow operation and a strong base from which to operate the Red Lion brand. As of September 30, 2009, we owned and leased 32 hotel properties, including hotels in many key markets in the western U.S. We also continue to hold properties with strong development potential such as our Bellevue, Washington, Post Falls, Idaho, and Kalispell, Montana locations. In February 2009, we announced the completion of renovations at our newly flagged Red Lion Anaheim property in Southern California. Including $0.7 million in renovations at our Denver Southeast location, we expect to invest an additional $3.0 million throughout the remainder of 2009 to maintain the condition and presentation of our physical assets, which are key to our success. However, we may reduce our level of anticipated capital spending as appropriate to align with our needs.
As of September 30, 2009, in addition to $5.1 million in cash, we had an unused capacity of $28 million under our $50 million revolving credit facility. This credit facility can be increased by an additional $50 million to a maximum of $100 million, subject to satisfaction of various conditions.
During the third quarter of 2009, we reported net income attributable to Red Lion Hotels Corporation of $3.2 million (or $0.18 per share) compared to $4.4 million (or $0.24 per share) during the third quarter of 2008. For the first nine months of 2009, we reported net income attributable to Red Lion Hotels Corporation of $2.1 million (or $0.12 per share) compared to net income of $2.2 million (or $0.12 per share) during the first nine months of 2008. For the third quarter and first nine months of 2009, total revenues decreased $6.4 million and $16.5 million, respectively, compared to those same periods in 2008.
Operating expenses decreased $4.6 million, or 9.6%, quarter-over-quarter, primarily driven by a $6.1 million reduction in hotel operating expenses offset by a $1.3 million increase in the entertainment segment operating costs and a $0.4 million increase in depreciation expense. Operating expenses decreased $16.4 million, or 12.0%, in the nine-month comparable period, which included a $3.7 million charge for separation costs associated with the retirement of our former President and Chief Executive Officer for the nine-month period ended September 30, 2008. The following table details the impact of the $3.7 million charge on net income, earnings per share and EBITDA for the first nine months of 2008 (in thousands, except per share data):
RLH is in the portfolios of John Keeley of Keeley Fund Management, John Rogers of ARIEL CAPITAL MANAGEMENT LLC.
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