RLH Corporation Reports Third Quarter 2017 Results
2017 Third Quarter and Year-to-date Highlights
- GAAP net income of
$2.8 million compared with$2.3 million in the third quarter of 2016
- Adjusted EBITDA from continuing operations for the third quarter ended
September 30, 2017 was$11.4 million compared with$10.6 million in 2016. Adjusted EBITDA increased 34% for the nine months endedSeptember 30, 2017 to$19.7 million compared with$14.7 million in the prior year.
- Total revenue increased 17% to
$51.0 million for the third quarter of 2017 compared with$43.7 million for the same period in 2016
- Achieved system-wide RevPAR growth of 1.6%
- Company operated hotels achieved
RevPAR growth of 3.2%
- Increased Franchise segment revenues to
$12.7 million in the third quarter of 2017 compared with$4.8 million in 2016 - an increase of 167%. This improvement reflects the brand acquisitions in 2016. The Franchise segment gross profit for the third quarter of 2017 was$3.8 million , an improvement of 146% from the third quarter of 2016. The gross profit margin was 30% in the third quarter of 2017 an improvement of 140 basis points over the second quarter of 2017 gross profit margin.
- For the nine months ended
September 30, 2017 , the Franchise business (as a percentage of the Franchise plus Company operated hotels segments) contributed 32% of Adjusted EBITDA as compared to 10% in the same period in 2016. The contribution of the brand acquisition in 2016 demonstrated the beginning of the Company's shift in earning contribution to its Franchise operations.
- Executed 120 license agreements in the first nine months of 2017. There are more than 20 upscale properties contracted that will open in the next 18 months including four
Hotel RL properties.
RLH Corporation has recently on boarded a Chief Development Officer who will be responsible to continue to grow the franchise operations for its upscale brands.
"It has been a quarter of significant achievements", said
Balance Sheet and Liquidity
At
Joint Venture Entities
Under generally accepted accounting principles, the Company is required to consolidate 100% of the joint venture entities assets, liabilities and results of operations. Although the Company is required to fully consolidate these entities, its economic share of the joint venture entities is 55%, except for
The Company currently has real estate interests in 18 of its properties. Four of the properties are leasehold interests, and the remaining fourteen are in the joint ventures.
For the nine months ended
The strength of the Company's balance street should improve as it closes on the sales of its hotels, and the Company expects to use the resulting cash on its balance sheet to finance a significant portion of growth of its Franchise operations.
As noted above, RLH Corporation's pro rata share of the consolidated debt position was
2017 Outlook and 2018 Expectations
2017 Outlook
Based on the strong financial results year to date and the current outlook for the Company's markets,
- Capital expenditures in the range of
$9 million to$11 million - Executed franchise license agreements to 130
- Full year System-wide RevPAR growth of 1% to 3%
- Adjusted EBITDA of
$22 million to$23 million
The Company expects to issue 414,000 shares of common stock subsequent to
The company's third quarter 2017 GAAP net income includes a
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
2018 Expectations
The Company is providing the following preliminary guidance for 2018:
- Full year system-wide RevPAR growth of 1% to 3%
Conference Call Information
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
About
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.
Consolidated Statements of Comprehensive Income (Loss) | ||||||||||||||||
(unaudited) | ||||||||||||||||
($ in thousands, except footnotes and per share data) | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Revenue: | ||||||||||||||||
Company operated hotels | $ | 37,244 | $ | 37,157 | $ | 94,214 | $ | 93,515 | ||||||||
Other revenues from managed properties | 1,054 | 1,733 | 3,047 | 4,498 | ||||||||||||
Franchised hotels | 12,714 | 4,766 | 36,045 | 12,194 | ||||||||||||
Other | 12 | 16 | 128 | 40 | ||||||||||||
Total revenues | 51,024 | 43,672 | 133,434 | 110,247 | ||||||||||||
Operating expenses: | ||||||||||||||||
Company operated hotels | 25,284 | 25,363 | 70,450 | 71,035 | ||||||||||||
Other costs from managed properties | 1,054 | 1,733 | 3,047 | 4,498 | ||||||||||||
Franchised hotels | 8,898 | 3,214 | 26,300 | 10,034 | ||||||||||||
Other | (9 | ) | 9 | (2 | ) | 30 | ||||||||||
Depreciation and amortization | 4,660 | 3,771 | 13,742 | 11,209 | ||||||||||||
Hotel facility and land lease | 1,201 | 1,197 | 3,604 | 3,543 | ||||||||||||
Gain on asset dispositions, net | (113 | ) | (100 | ) | (334 | ) | (729 | ) | ||||||||
General and administrative expenses | 3,640 | 2,031 | 11,348 | 7,781 | ||||||||||||
Acquisition and integration costs | 1,235 | 1,413 | 1,246 | 1,653 | ||||||||||||
Total operating expenses | 45,850 | 38,631 | 129,401 | 109,054 | ||||||||||||
Operating income | 5,174 | 5,041 | 4,033 | 1,193 | ||||||||||||
Other income (expense): | ||||||||||||||||
Interest expense | (2,119 | ) | (1,793 | ) | (6,114 | ) | (4,741 | ) | ||||||||
Other income (loss), net | 338 | 169 | 562 | 290 | ||||||||||||
Total other income (expense) | (1,781 | ) | (1,624 | ) | (5,552 | ) | (4,451 | ) | ||||||||
Income (loss) from continuing operations before taxes | 3,393 | 3,417 | (1,519 | ) | (3,258 | ) | ||||||||||
Income tax expense | 174 | 166 | 513 | 258 | ||||||||||||
Net income (loss) from continuing operations | 3,219 | 3,251 | (2,032 | ) | (3,516 | ) | ||||||||||
Discontinued operations: | ||||||||||||||||
Income from discontinued business unit, net of income tax benefit of | 408 | 262 | 611 | 1,831 | ||||||||||||
Net income (loss) | 3,627 | 3,513 | (1,421 | ) | (1,685 | ) | ||||||||||
Net (income) loss attributable to noncontrolling interest | (871 | ) | (1,207 | ) | 507 | (645 | ) | |||||||||
Net income (loss) and comprehensive income (loss) attributable to | $ | 2,756 | $ | 2,306 | $ | (914 | ) | $ | (2,330 | ) |
Consolidated Statements of Comprehensive Income (Loss) - Continued | ||||||||||||||||
(unaudited) | ||||||||||||||||
($ in thousands, except footnotes and per share data) | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Earnings (loss) per share - basic | ||||||||||||||||
Income (loss) from continuing operations attributable to | $ | 0.10 | $ | 0.10 | $ | (0.06 | ) | $ | (0.21 | ) | ||||||
Income from discontinued operations | 0.02 | 0.01 | 0.02 | 0.09 | ||||||||||||
Net income (loss) attributable to | $ | 0.12 | $ | 0.11 | $ | (0.04 | ) | $ | (0.12 | ) | ||||||
Earnings (loss) per share - diluted | ||||||||||||||||
Income (loss) from continuing operations attributable to | $ | 0.10 | $ | 0.10 | $ | (0.06 | ) | $ | (0.21 | ) | ||||||
Income from discontinued operations | 0.01 | 0.01 | 0.02 | 0.09 | ||||||||||||
Net income (loss) attributable to | $ | 0.11 | $ | 0.11 | $ | (0.04 | ) | $ | (0.12 | ) | ||||||
Weighted average shares - basic | 23,609 | 20,228 | 23,542 | 20,157 | ||||||||||||
Weighted average shares - diluted | 24,176 | 20,613 | 23,542 | 20,157 | ||||||||||||
Non-GAAP Financial Measures (1) | ||||||||||||||||
EBITDA from continuing operations | $ | 10,580 | $ | 9,243 | $ | 18,948 | $ | 14,523 | ||||||||
Adjusted EBITDA from continuing operations | $ | 11,407 | $ | 10,615 | $ | 19,683 | $ | 14,697 | ||||||||
Adjusted net income (loss) | $ | 4,454 | $ | 4,885 | $ | (686 | ) | $ | (1,511 | ) | ||||||
(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). |
Consolidated Balance Sheets | ||||||||
(unaudited) | ||||||||
($ in thousands, except footnotes and per share data) | ||||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 36,179 | $ | 38,072 | ||||
Restricted cash | 12,946 | 9,537 | ||||||
Accounts receivable, net | 14,450 | 9,196 | ||||||
Accounts receivable from related parties | 1,824 | 1,865 | ||||||
Notes receivable, net | 1,572 | 1,295 | ||||||
Inventories | 631 | 596 | ||||||
Prepaid expenses and other | 5,156 | 4,244 | ||||||
Assets held for sale | 4,285 | 5,585 | ||||||
Total current assets | 77,043 | 70,390 | ||||||
Property and equipment, net | 204,131 | 210,485 | ||||||
9,404 | 9,404 | |||||||
Intangible assets | 51,306 | 52,848 | ||||||
Other assets, net | 1,843 | 1,408 | ||||||
Total assets | $ | 343,727 | $ | 344,535 | ||||
LIABILITIES | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 5,555 | $ | 8,479 | ||||
Accrued payroll and related benefits | 5,516 | 4,590 | ||||||
Other accrued entertainment liabilities held for sale | 6,757 | 11,334 | ||||||
Other accrued liabilities | 6,087 | 4,063 | ||||||
Long-term debt, due within one year | 24,422 | 1,469 | ||||||
Contingent consideration for acquisition due to related party, due within one year | 7,581 | 6,768 | ||||||
Liabilities held for sale | 739 | 686 | ||||||
Total current liabilities | 56,657 | 37,389 | ||||||
Long-term debt, due after one year, net of debt issuance costs | 87,040 | 106,862 | ||||||
Contingent consideration for acquisition due to related party, due after one year | 4,944 | 4,432 | ||||||
Deferred income and other long-term liabilities | 1,666 | 2,293 | ||||||
Deferred income taxes | 6,132 | 5,716 | ||||||
Total liabilities | 156,439 | 156,692 | ||||||
Commitments and contingencies | ||||||||
STOCKHOLDERS' EQUITY | ||||||||
Preferred stock - 5,000,000 shares authorized; | — | — | ||||||
Common stock - 50,000,000 shares authorized; | 236 | 234 | ||||||
Additional paid-in capital, common stock | 173,341 | 171,089 | ||||||
Accumulated deficit | (16,901 | ) | (15,987 | ) | ||||
156,676 | 155,336 | |||||||
Noncontrolling interest | 30,612 | 32,507 | ||||||
Total stockholders' equity | 187,288 | 187,843 | ||||||
Total liabilities and stockholders' equity | $ | 343,727 | $ | 344,535 |
Consolidated Statements of Cash Flows | ||||||||
(unaudited) | ||||||||
($ in thousands) | ||||||||
Nine Months Ended | ||||||||
2017 | 2016 | |||||||
Operating activities: | ||||||||
Net loss | $ | (1,421 | ) | $ | (1,685 | ) | ||
Adjustments to reconcile net loss to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 13,806 | 11,354 | ||||||
Amortization of debt issuance costs | 892 | 880 | ||||||
Gain on disposition of property, equipment and other assets, net | (328 | ) | (730 | ) | ||||
Deferred income taxes | 416 | 233 | ||||||
Equity in investments | — | (171 | ) | |||||
Stock based compensation expense | 2,392 | 1,960 | ||||||
Provision for doubtful accounts | 407 | 212 | ||||||
Fair value adjustments to contingent consideration | 1,325 | — | ||||||
Change in current assets and liabilities: | ||||||||
Accounts receivable | (4,345 | ) | (4,664 | ) | ||||
Notes receivable | (69 | ) | (68 | ) | ||||
Inventories | (32 | ) | 63 | |||||
Prepaid expenses and other | (1,324 | ) | (1,959 | ) | ||||
Accounts payable | (780 | ) | 3,697 | |||||
Other accrued liabilities | (1,936 | ) | (2,046 | ) | ||||
Net cash provided by operating activities | 9,003 | 7,076 | ||||||
Investing activities: | ||||||||
Capital expenditures | (8,024 | ) | (30,266 | ) | ||||
Acquisition of Vantage Hospitality | — | (22,694 | ) | |||||
Proceeds from disposition of property and equipment | 28 | 434 | ||||||
Collection of notes receivable related to property sales | 200 | 1,781 | ||||||
Advance of note receivable | (408 | ) | (328 | ) | ||||
Proceeds from sales of short-term investments | — | 18,060 | ||||||
Other, net | — | 78 | ||||||
Net cash used in investing activities | (8,204 | ) | (32,935 | ) | ||||
Financing activities: | ||||||||
Borrowings on long-term debt | 3,237 | 19,547 | ||||||
Repayment of long-term debt | (959 | ) | — | |||||
Debt issuance costs | (35 | ) | (192 | ) | ||||
Proceeds from sale of interests in joint ventures | — | 3,194 | ||||||
Distributions to noncontrolling interest | (1,388 | ) | (3,594 | ) | ||||
Stock-based compensation awards cancelled to settle employee tax withholding | (332 | ) | (343 | ) | ||||
Other, net | 194 | 156 | ||||||
Net cash provided by financing activities | 717 | 18,768 | ||||||
Change in cash, cash equivalents and restricted cash: | ||||||||
Net increase (decrease) in cash, cash equivalents and restricted cash | 1,516 | (7,091 | ) | |||||
Cash, cash equivalents and restricted cash at beginning of period | 47,609 | 35,202 | ||||||
Cash, cash equivalents and restricted cash at end of period | $ | 49,125 | $ | 28,111 |
(unaudited) | |||||||||||||||||
Company Operated | Franchised | Total Systemwide | |||||||||||||||
Hotels | Total Available Rooms | Hotels | Total Available Rooms | Hotels | Total Available Rooms | ||||||||||||
Beginning quantity, | 20 | 4,200 | 1,117 | 68,900 | 1,137 | 73,100 | |||||||||||
Newly opened properties | — | — | 48 | 3,500 | 48 | 3,500 | |||||||||||
Terminated properties | — | — | (83 | ) | (5,800 | ) | (83 | ) | (5,800 | ) | |||||||
Ending quantity, | 20 | 4,200 | 1,082 | 66,600 | 1,102 | 70,800 | |||||||||||
Executed franchise license and management agreements, nine months ended | |||||||||||||||||
New franchise / management agreements | 1 | 100 | 49 | 3,300 | 50 | 3,400 | |||||||||||
Renewals / changes of ownership | — | — | 70 | 5,000 | 70 | 5,000 | |||||||||||
Total executed franchise license agreements, nine months ended | 1 | 100 | 119 | 8,300 | 120 | 8,400 |
| |||||||||||||||||||||
For the Three Months Ended | |||||||||||||||||||||
2017 | 2016 | ||||||||||||||||||||
Average Occupancy (2) | ADR (3) | RevPAR (4) | Average Occupancy (2) | ADR (3) | RevPAR (4) | ||||||||||||||||
Systemwide | 69.9 | % | $ | 99.40 | $ | 69.46 | 70.5 | % | $ | 96.95 | $ | 68.38 | |||||||||
Change from prior comparative period: | Average Occupancy (2) | ADR (3) | RevPAR (4) | ||||||||||||||||||
Systemwide | (60.0 | ) | bps | 2.5 | % | 1.6 | % |
For the Nine Months Ended | |||||||||||||||||||||
2017 | 2016 | ||||||||||||||||||||
Average Occupancy (2) | ADR (3) | RevPAR (4) | Average Occupancy (2) | ADR (3) | RevPAR (4) | ||||||||||||||||
Systemwide | 63.1 | % | $ | 92.74 | $ | 58.54 | 64.1 | % | $ | 89.81 | $ | 57.59 | |||||||||
Change from prior comparative period: | Average Occupancy (2) | ADR (3) | RevPAR (4) | ||||||||||||||||||
Systemwide | (100.0 | ) | bps | 3.3 | % | 1.6 | % |
(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. |
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 in the fourth quarter of 2016, and one property that opened during the second quarter of 2016, as these properties had not been open at least one year as of the beginning of the current year. In addition, we exclude revenue earned and expenses incurred related to our hotel management agreements. | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Company operated hotel revenue | $ | 37,244 | $ | 37,157 | $ | 94,214 | $ | 93,515 | ||||||||
less: revenue from sold and closed hotels | — | (1,338 | ) | — | (2,791 | ) | ||||||||||
less: revenue from hotels without comparable results | (1,307 | ) | (1,223 | ) | (3,528 | ) | (1,830 | ) | ||||||||
less: revenue from managed properties | (380 | ) | (235 | ) | (855 | ) | (982 | ) | ||||||||
Comparable company operated hotel revenue | $ | 35,557 | $ | 34,361 | $ | 89,831 | $ | 87,912 | ||||||||
Company operated hotel operating expenses | $ | 25,284 | $ | 25,363 | $ | 70,450 | $ | 71,035 | ||||||||
less: operating expenses from sold and closed hotels | — | (761 | ) | — | (1,949 | ) | ||||||||||
less: operating expenses from hotels without comparable results | (1,108 | ) | (1,151 | ) | (3,096 | ) | (2,311 | ) | ||||||||
less: operating expenses from managed properties | (188 | ) | (237 | ) | (520 | ) | (866 | ) | ||||||||
Comparable company operated hotel operating expenses | $ | 23,988 | $ | 23,214 | $ | 66,834 | $ | 65,909 | ||||||||
Company operated hotel direct operating profit | $ | 11,960 | $ | 11,794 | $ | 23,764 | $ | 22,480 | ||||||||
less: operating profit from sold and closed hotels | — | (577 | ) | — | (842 | ) | ||||||||||
less: operating profit from hotels without comparable results | (199 | ) | (72 | ) | (432 | ) | 481 | |||||||||
less: operating profit from managed properties | (192 | ) | 2 | (335 | ) | (116 | ) | |||||||||
Comparable company operated hotel direct profit | $ | 11,569 | $ | 11,147 | $ | 22,997 | $ | 22,003 | ||||||||
Comparable company operated hotel direct margin % | 32.5 | % | 32.4 | % | 25.6 | % | 25.0 | % |
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. | ||||||||||||||||
The following is a reconciliation of EBITDA and Adjusted EBITDA to net income (loss) for the periods presented: | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Net income (loss) | $ | 3,627 | $ | 3,513 | $ | (1,421 | ) | $ | (1,685 | ) | ||||||
Depreciation and amortization | 4,660 | 3,771 | 13,742 | 11,209 | ||||||||||||
Interest expense | 2,119 | 1,793 | 6,114 | 4,741 | ||||||||||||
Income tax expense (benefit) | 174 | 166 | 513 | 258 | ||||||||||||
EBITDA from continuing operations | 10,580 | 9,243 | 18,948 | 14,523 | ||||||||||||
Acquisition and integration costs (1) | 1,235 | 1,413 | 1,246 | 1,653 | ||||||||||||
Employee separation and transition costs (2) | — | 221 | 100 | 617 | ||||||||||||
Reserve for environmental cleanup (3) | — | — | — | 128 | ||||||||||||
Gain on asset dispositions (4) | — | — | — | (393 | ) | |||||||||||
Income from discontinued business unit (5) | (408 | ) | (262 | ) | (611 | ) | (1,831 | ) | ||||||||
Adjusted EBITDA from continuing operations | 11,407 | 10,615 | 19,683 | 14,697 | ||||||||||||
Income from discontinued business unit (5) | 408 | 262 | 611 | 1,831 | ||||||||||||
Depreciation and amortization of discontinued business unit | 7 | 43 | 64 | 145 | ||||||||||||
Interest expense from discontinued business unit | — | 12 | — | 12 | ||||||||||||
Adjusted EBITDA from discontinued operations | 415 | 317 | 675 | 1,988 | ||||||||||||
Adjusted EBITDA from continuing & discontinued operations | 11,822 | 10,932 | 20,358 | 16,685 | ||||||||||||
Adjusted EBITDA attributable to noncontrolling interests | (3,142 | ) | (3,155 | ) | (6,110 | ) | (6,137 | ) | ||||||||
Adjusted EBITDA attributable to | $ | 8,680 | $ | 7,777 | $ | 14,248 | $ | 10,548 | ||||||||
(1) On | ||||||||||||||||
(2) During the third quarter of 2016, | ||||||||||||||||
(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, | ||||||||||||||||
(5) On |
Reconciliation of Adjusted Net Income (Loss) to Net Income (Loss) | ||||||||||||||||
(unaudited) | ||||||||||||||||
($ in thousands, except per share data) | ||||||||||||||||
The following is a reconciliation of adjusted net income to net income (loss) for the periods presented: | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Net income (loss) | $ | 3,627 | $ | 3,513 | $ | (1,421 | ) | $ | (1,685 | ) | ||||||
Acquisition and integration costs (1) | 1,235 | 1,413 | 1,246 | 1,653 | ||||||||||||
Employee separation and transition costs (2) | — | 221 | 100 | 617 | ||||||||||||
Reserve for environmental cleanup (3) | — | — | — | 128 | ||||||||||||
Gain on asset dispositions (4) | — | — | — | (393 | ) | |||||||||||
Income from discontinued business unit (5) | (408 | ) | (262 | ) | (611 | ) | (1,831 | ) | ||||||||
Adjusted net income (loss) | $ | 4,454 | $ | 4,885 | $ | (686 | ) | $ | (1,511 | ) | ||||||
Adjusted net income (loss) per share | $ | 0.18 | $ | 0.24 | $ | (0.03 | ) | $ | (0.07 | ) | ||||||
Weighted average shares - basic | 23,609 | 20,228 | 23,542 | 20,157 | ||||||||||||
Weighted average shares - diluted (6) | 24,659 | 20,613 | 23,542 | 20,157 | ||||||||||||
(1) On | ||||||||||||||||
(2) During the third quarter of 2016, | ||||||||||||||||
(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, | ||||||||||||||||
(5) On | ||||||||||||||||
(6) For
Adjusted net income (loss) per share for the nine months ended |
509-777-6417
Source: RLHC (News Provided by Acquire Media