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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 10-Q
(Mark One)
| | | | | |
☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended June 30, 2020
OR
| | | | | |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from to
Commission File Number: 001-13957
RED LION HOTELS CORPORATION
(Exact name of registrant as specified in its charter)
| | | | | | | | | | | | | | |
Washington | | | 91-1032187 | |
(State or other jurisdiction of incorporation or organization) | | | (I.R.S. Employer Identification No.) | |
| | | | |
1550 Market St. #425 | Denver | Colorado | 80202 | |
(Address of Principal Executive Offices) | | | (Zip Code) | |
(509) 459-6100
Registrant's telephone number, including area code
| | | | | | | | |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
Common Stock | RLH | New York Stock Exchange |
__________________________________________
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ☒ No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer," "accelerated filer,” and "smaller reporting company" in Rule 12b-2 of the Exchange Act.
| | | | | | | | | | | | | | | | | | | | |
Large accelerated filer | | ☐ | | Accelerated filer | | ☒ |
Non-accelerated filer | | ☐ | | Smaller reporting company | | ☒ |
| | | | Emerging growth company | | ☐ |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes ☐ No ☒
As of August 3, 2020, there were 25,401,421 shares of the registrant’s common stock outstanding.
TABLE OF CONTENTS
| | | | | | | | |
| | |
Item No. | Description | Page No. |
| | |
| PART I – FINANCIAL INFORMATION | |
| | |
Item 1 | | |
| Condensed Consolidated Balance Sheets | |
| Condensed Consolidated Statements of Comprehensive Loss | |
| Condensed Consolidated Statements of Stockholders' Equity | |
| Condensed Consolidated Statements of Cash Flows | |
| Notes to Condensed Consolidated Financial Statements | |
Item 2 | | |
Item 3 | | |
Item 4 | | |
| | |
| PART II – OTHER INFORMATION | |
| | |
Item 1 | | |
Item 1A | | |
Item 2 | | |
Item 3 | | |
Item 4 | | |
Item 5 | | |
Item 6 | | |
| | |
PART I – FINANCIAL INFORMATION
Item 1.Financial Statements
RED LION HOTELS CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
| | | | | | | | | | | | | | |
| | June 30, 2020 | | December 31, 2019 |
| | (In thousands, except share data) | | |
ASSETS | | | | |
Current assets: | | | | |
Cash and cash equivalents ($972 and $1,819 attributable to VIEs) | | $ | 33,702 | | | $ | 29,497 | |
Restricted cash ($100 and $2,311 attributable to VIEs) | | 100 | | | 2,311 | |
Accounts receivable ($398 and $1,033 attributable to VIEs), net of an allowance for doubtful accounts of $8,611 and $4,589, respectively | | 11,463 | | | 15,143 | |
Notes receivable, net | | 286 | | | 5,709 | |
Other current assets ($130 and $311 attributable to VIEs) | | 4,255 | | | 5,849 | |
| | | | |
Total current assets | | 49,806 | | | 58,509 | |
Property and equipment, net ($11,296 and $29,848 attributable to VIEs) | | 34,492 | | | 68,668 | |
Operating lease right-of-use assets ($— and $10,810 attributable to VIEs) | | 5,337 | | | 48,283 | |
Goodwill | | 18,595 | | | 18,595 | |
Intangible assets, net | | 47,081 | | | 48,612 | |
Other assets, net ($— and $703 attributable to VIEs) | | 2,635 | | | 3,851 | |
Total assets | | $ | 157,946 | | | $ | 246,518 | |
| | | | |
LIABILITIES | | | | |
Current liabilities: | | | | |
Accounts payable ($134 and $589 attributable to VIEs) | | $ | 4,093 | | | $ | 5,510 | |
Accrued payroll and related benefits ($90 and $349 attributable to VIEs) | | 1,031 | | | 2,709 | |
Other accrued liabilities ($182 and $455 attributable to VIEs) | | 4,900 | | | 5,469 | |
Long-term debt, due within one year ($5,582 and $16,984 attributable to VIEs) | | 5,582 | | | 16,984 | |
Operating lease liabilities, due within one year ($— and $966 attributable to VIEs) | | 1,520 | | | 4,809 | |
Total current liabilities | | 17,126 | | | 35,481 | |
Long-term debt, due after one year, net of debt issuance costs ($— and $5,576 attributable to VIEs) | | — | | | 5,576 | |
Line of credit, due after one year | | — | | | 10,000 | |
Operating lease liabilities, due after one year ($— and $11,938 attributable to VIEs) | | 5,059 | | | 46,592 | |
Deferred income and other long-term liabilities ($— and $28 attributable to VIEs) | | 842 | | | 1,105 | |
Deferred income taxes | | 823 | | | 743 | |
Total liabilities | | 23,850 | | | 99,497 | |
| | | | |
Commitments and contingencies (Note 10) | | | | |
| | | | |
STOCKHOLDERS’ EQUITY | | | | |
RLH 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; 25,342,104 and 25,148,005 shares issued and outstanding | | 254 | | | 251 | |
Additional paid-in capital, common stock | | 179,770 | | | 181,608 | |
Accumulated deficit | | (48,936) | | | (36,875) | |
Total RLH Corporation stockholders' equity | | 131,088 | | | 144,984 | |
Noncontrolling interest | | 3,008 | | | 2,037 | |
Total stockholders' equity | | 134,096 | | | 147,021 | |
Total liabilities and stockholders’ equity | | $ | 157,946 | | | $ | 246,518 | |
The accompanying notes are an integral part of these condensed consolidated financial statements.
RED LION HOTELS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended | | | | Six Months Ended | | |
| | June 30, | | | | June 30, | | |
| | 2020 | | 2019 | | 2020 | | 2019 |
| | (In thousands, except per share data) | | | | | | |
Revenue: | | | | | | | | |
Royalty | | $ | 3,584 | | | $ | 5,867 | | | $ | 7,941 | | | $ | 11,607 | |
Marketing, reservations and reimbursables | | 4,473 | | | 7,603 | | | 10,278 | | | 14,332 | |
Other franchise | | 701 | | | 1,214 | | | 1,475 | | | 1,756 | |
Company operated hotels | | 1,471 | | | 14,236 | | | 7,800 | | | 27,206 | |
Other | | — | | | 5 | | | — | | | 8 | |
Total revenues | | 10,229 | | | 28,925 | | | 27,494 | | | 54,909 | |
Operating expenses: | | | | | | | | |
Selling, general, administrative and other expenses | | 4,770 | | | 6,660 | | | 21,035 | | | 14,051 | |
Company operated hotels | | 2,139 | | | 12,532 | | | 8,817 | | | 24,077 | |
Marketing, reservations and reimbursables | | 3,791 | | | 7,847 | | | 9,549 | | | 15,008 | |
Depreciation and amortization | | 2,410 | | | 4,109 | | | 4,947 | | | 7,556 | |
Asset impairment | | — | | | — | | | 1,760 | | | — | |
Loss (gain) on asset dispositions, net | | 331 | | | 38 | | | (7,561) | | | 44 | |
Transaction and integration costs | | 1,002 | | | 173 | | | 1,400 | | | 235 | |
Total operating expenses | | 14,443 | | | 31,359 | | | 39,947 | | | 60,971 | |
Operating loss | | (4,214) | | | (2,434) | | | (12,453) | | | (6,062) | |
Other income (expense): | | | | | | | | |
Interest expense | | (49) | | | (1,109) | | | (555) | | | (1,991) | |
Loss on early retirement of debt | | — | | | (164) | | | (1,309) | | | (164) | |
Other income, net | | 199 | | | 44 | | | 247 | | | 77 | |
Total other income (expense) | | 150 | | | (1,229) | | | (1,617) | | | (2,078) | |
Loss before taxes | | (4,064) | | | (3,663) | | | (14,070) | | | (8,140) | |
Income tax expense (benefit) | | 148 | | | 108 | | | (604) | | | 190 | |
Net loss | | (4,212) | | | (3,771) | | | (13,466) | | | (8,330) | |
Net loss attributable to noncontrolling interest | | 250 | | | 774 | | | 1,405 | | | 1,060 | |
Net loss and comprehensive loss attributable to RLH Corporation | | $ | (3,962) | | | $ | (2,997) | | | $ | (12,061) | | | $ | (7,270) | |
| | | | | | | | |
Loss per share - basic | | $ | (0.16) | | | $ | (0.12) | | | $ | (0.48) | | | $ | (0.29) | |
Loss per share - diluted | | $ | (0.16) | | | $ | (0.12) | | | $ | (0.48) | | | $ | (0.29) | |
| | | | | | | | |
Weighted average shares - basic | | 25,335 | | | 24,856 | | | 25,267 | | | 24,730 | |
Weighted average shares - diluted | | 25,335 | | | 24,856 | | | 25,267 | | | 24,730 | |
The accompanying notes are an integral part of these condensed consolidated financial statements.
RED LION HOTELS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Red Lion Hotels Corporation Stockholders' Equity | | | | | | | | | | | | | | | |
| | Common Stock | | | | | | Retained Earnings (Accumulated Deficit) | | | | RLH Corporation Total Equity | | Equity Attributable to Noncontrolling Interest | | | |
| | Shares | | Amount | | Additional Paid-In Capital | | | | | | | | | | Total Equity | |
| | (In thousands, except share data) | | | | | | | | | | | | | | | |
Balances, December 31, 2018 | | 24,570,158 | | | $ | 246 | | | $ | 182,018 | | | $ | (17,846) | | | | | $ | 164,418 | | | $ | 21,164 | | | $ | 185,582 | | |
| Net income (loss) | — | | | — | | | — | | | (4,273) | | | | | (4,273) | | | (286) | | | (4,559) | | |
| | | | | | | | | | | | | | | | | |
| Shared based payment activity | 56,301 | | | 1 | | | 685 | | | — | | | | | 686 | | | — | | | 686 | | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Distributions to noncontrolling interests | — | | | — | | | — | | | — | | | | | — | | | (7,431) | | | (7,431) | | |
Balances, March 31, 2019 | | 24,626,459 | | | 247 | | | 182,703 | | | (22,119) | | | | | 160,831 | | | 13,447 | | | 174,278 | | |
| Net income (loss) | — | | | — | | | — | | | (2,997) | | | | | (2,997) | | | (774) | | | (3,771) | | |
| | | | | | | | | | | | | | | | | |
| Shared based payment activity | 449,453 | | | 4 | | | (1,034) | | | — | | | | | (1,030) | | | — | | | (1,030) | | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Balances, June 30, 2019 | | 25,075,912 | | | 251 | | | 181,669 | | | (25,116) | | | | | 156,804 | | | 12,673 | | | 169,477 | | |
| Net income (loss) | — | | | — | | | — | | | (3,672) | | | | | (3,672) | | | (2,980) | | | (6,652) | | |
| | | | | | | | | | | | | | | | | |
| Shared based payment activity | 42,600 | | | 1 | | | 1,054 | | | — | | | | | 1,055 | | | — | | | 1,055 | | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Balances, September 30, 2019 | | 25,118,512 | | | 252 | | | 182,723 | | | (28,788) | | | | | 154,187 | | | 9,693 | | | 163,880 | | |
| Net income (loss) | — | | | — | | | — | | | (8,087) | | | | | (8,087) | | | 2,096 | | | (5,991) | | |
| | | | | | | | | | | | | | | | | |
| Shared based payment activity | 29,493 | | | (1) | | | (739) | | | — | | | | | (740) | | | — | | | (740) | | |
| | | | | | | | | | | | | | | | | |
| Reclassification of noncontrolling interest | — | | | — | | | (376) | | | — | | | | | (376) | | | 376 | | | — | | |
| Distributions to noncontrolling interests | — | | | — | | | — | | | — | | | | | — | | | (10,128) | | | (10,128) | | |
Balances, December 31, 2019 | | 25,148,005 | | | 251 | | | 181,608 | | | (36,875) | | | | | 144,984 | | | 2,037 | | | 147,021 | | |
| Net income (loss) | — | | | — | | | — | | | (8,099) | | | | | (8,099) | | | (1,155) | | | (9,254) | | |
| | | | | | | | | | | | | | | | | |
| Shared based payment activity | 60,978 | | | 2 | | | 336 | | | — | | | | | 338 | | | — | | | 338 | | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Distributions to noncontrolling interests | — | | | — | | | (2,376) | | | — | | | | | (2,376) | | | 2,376 | | | — | | |
Balances, March 31, 2020 | | 25,208,983 | | | 253 | | | 179,568 | | | (44,974) | | | | | 134,847 | | | 3,258 | | | 138,105 | | |
| Net income (loss) | — | | | — | | | — | | | (3,962) | | | | | (3,962) | | | (250) | | | (4,212) | | |
| | | | | | | | | | | | | | | | | |
| Shared based payment activity | 133,121 | | | 1 | | | 202 | | | — | | | | | 203 | | | — | | | 203 | | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Balances, June 30, 2020 | | 25,342,104 | | | $ | 254 | | | $ | 179,770 | | | $ | (48,936) | | | | | $ | 131,088 | | | $ | 3,008 | | | $ | 134,096 | | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
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| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
The accompanying notes are an integral part of these condensed consolidated financial statements.
RED LION HOTELS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
| | | | | | | | | | | | | | | |
| | Six Months Ended | | | |
| | June 30, | | | |
| | 2020 | | 2019 | |
| | (In thousands) | | | |
Operating activities: | | | | | |
Net loss | | $ | (13,466) | | | $ | (8,330) | | |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | | | | | |
Depreciation and amortization | | 4,947 | | | 7,556 | | |
Noncash PIK interest and amortization of debt issuance costs | | 187 | | | 249 | | |
Amortization of key money and contract costs | | 514 | | | 459 | | |
Amortization of contract liabilities | | (301) | | | (534) | | |
Loss (gain) on asset dispositions, net | | (7,561) | | | 44 | | |
Noncash loss on early retirement of debt | | 750 | | | 67 | | |
Asset impairment | | 1,760 | | | — | | |
Deferred income taxes | | 80 | | | 98 | | |
Stock-based compensation expense | | 575 | | | 1,562 | | |
Provision for doubtful accounts | | 10,328 | | | 472 | | |
| | | | | |
Change in operating assets and liabilities: | | | | | |
Accounts receivable | | (1,085) | | | (820) | | |
| | | | | |
Key money disbursements | | (329) | | | (535) | | |
Other current assets | | 1,299 | | | 839 | | |
Accounts payable | | (1,483) | | | 2,827 | | |
Other accrued liabilities | | (1,984) | | | (899) | | |
Net cash provided by (used in) operating activities | | (5,769) | | | 3,055 | | |
Investing activities: | | | | | |
Capital expenditures | | (1,374) | | | (2,843) | | |
| | | | | |
| | | | | |
Net proceeds from disposition of property and equipment | | 36,896 | | | — | | |
Collection of notes receivable | | — | | | 242 | | |
Advances on notes receivable | | — | | | (90) | | |
Net cash provided by (used in) investing activities | | 35,522 | | | (2,691) | | |
Financing activities: | | | | | |
Borrowings on long-term debt, net of discounts | | 4,234 | | | 32,935 | | |
Repayment of long-term debt and finance leases | | (21,958) | | | (20,283) | | |
Repayment of line of credit borrowing | | (10,000) | | | — | | |
Debt issuance costs | | — | | | (542) | | |
| | | | | |
Distributions to noncontrolling interest | | — | | | (7,431) | | |
| | | | | |
Stock-based compensation awards canceled to settle employee tax withholding | | (81) | | | (2,131) | | |
Stock option and stock purchase plan issuances, net and other | | 46 | | | 105 | | |
Net cash provided by (used in) financing activities | | (27,759) | | | 2,653 | | |
| | | | | |
Change in cash, cash equivalents and restricted cash: | | | | | |
Net increase (decrease) in cash, cash equivalents and restricted cash | | 1,994 | | | 3,017 | | |
Cash, cash equivalents and restricted cash at beginning of period | | 31,808 | | | 19,789 | | |
Cash, cash equivalents and restricted cash at end of period | | $ | 33,802 | | | $ | 22,806 | | |
The accompanying notes are an integral part of these condensed consolidated financial statements.
RED LION HOTELS CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
1.Organization
Red Lion Hotels Corporation ("RLH Corporation," "RLHC," "we," "our," "us," or "our company") is a NYSE-listed hospitality and leisure company (ticker symbol: RLH) doing business as RLH Corporation and primarily engaged in the franchising and ownership of hotels under the following proprietary brands: Hotel RL, Red Lion Hotels, Red Lion Inn & Suites, GuestHouse, Americas Best Value Inn, Canadas Best Value Inn, Signature and Signature Inn, Knights Inn, and Country Hearth Inns & Suites.
2.Summary of Significant Accounting Policies
The unaudited condensed consolidated financial statements included herein were prepared by us pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC") and in accordance with generally accepted accounting principles in the United States of America ("GAAP"). Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with GAAP have been condensed or omitted as permitted by such rules and regulations.
The Consolidated Balance Sheet as of December 31, 2019 was derived from the audited balance sheet as of such date. We believe the disclosures included herein are adequate; however, they should be read in conjunction with the consolidated financial statements and the notes thereto for the year ended December 31, 2019, filed with the SEC in our annual report on Form 10-K on February 27, 2020.
In the opinion of management, these unaudited condensed consolidated financial statements contain all of the adjustments of a normal and recurring nature necessary to present fairly our Condensed Consolidated Balance Sheets, the Condensed Consolidated Statements of Comprehensive Loss, the Condensed Consolidated Statements of Stockholders' Equity, and the Condensed Consolidated Statements of Cash Flows. The results of operations for the periods presented may not be indicative of that which may be expected for a full year or for any other fiscal period.
New Accounting Pronouncements Not Yet Adopted
In June 2016, the Financial Accounting Standards Board ("FASB") issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326) – Measurement of Credit Losses on Financial Instruments, as amended by multiple subsequent ASUs, which will change how entities will measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. The ASU will replace the current "incurred loss" approach with an "expected loss" model for instruments measured at amortized cost. For trade and other receivables, held to maturity debt securities, loans and other instruments, entities will be required to use a new forward-looking “expected loss” model that generally will result in the earlier recognition of allowances for losses. In October 2019, an update was issued to the standard that deferred the effective date of the guidance to the first quarter of 2023 for smaller reporting companies such as us. We are currently evaluating the effects of this ASU on our financial statements, and such effects have not yet been determined.
In December 2019, the FASB issued ASU 2019-12, Simplifying the Accounting for Income Taxes, which amends the existing guidance related to the accounting for income taxes. The ASU eliminates certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period, and the recognition for outside basis differences related to changes in ownership of equity method investments and foreign subsidiaries. The guidance also simplifies aspects of accounting for franchise taxes and enacted changes in tax laws or rates and clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill. The ASU is effective the first quarter of 2021, with early adoption permitted. We are currently evaluating the effects of this ASU on our financial statements, and such effects have not yet been determined.
We have assessed the potential impact of other recently issued, but not yet effective, accounting standards and determined that the provisions are either not applicable to us or are not anticipated to have a material impact on our consolidated financial statements.
3. Business Segments
We have two operating segments: franchised hotels and company operated hotels. The "other" segment consists of miscellaneous revenues and expenses, cash and cash equivalents, certain receivables, certain property and equipment and general and administrative expenses, which are not specifically associated with an operating segment. Management reviews and evaluates the operating segments exclusive of interest expense, income taxes and certain corporate expenses; therefore, they have not been allocated to the operating segments. We allocate selling, general, administrative and other expenses to our operating segments. All balances have been presented after the elimination of inter-segment and intra-segment revenues and expenses.
Selected financial information is provided below (in thousands):
| | | | | | | | | | | | | | | | | | | | | | | | | | |
Three Months Ended June 30, 2020 | | Franchised Hotels | | Company Operated Hotels | | Other | | Total |
Revenue | | $ | 8,758 | | | $ | 1,471 | | | $ | — | | | $ | 10,229 | |
Operating expenses: | | | | | | | | |
Segment and other operating expenses | | 5,647 | | | 2,426 | | | 2,627 | | | 10,700 | |
Depreciation and amortization | | 894 | | | 423 | | | 1,093 | | | 2,410 | |
| | | | | | | | |
Loss (gain) on asset dispositions, net | | — | | | 111 | | | 220 | | | 331 | |
Transaction and integration costs | | — | | | 21 | | | 981 | | | 1,002 | |
Operating income (loss) | | $ | 2,217 | | | $ | (1,510) | | | $ | (4,921) | | | $ | (4,214) | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
Three Months Ended June 30, 2019 | | Franchised Hotels | | Company Operated Hotels | | Other | | Total |
Revenue | | $ | 14,684 | | | $ | 14,236 | | | $ | 5 | | | $ | 28,925 | |
Operating expenses: | | | | | | | | |
Segment and other operating expenses | | 10,084 | | | 12,863 | | | 4,092 | | | 27,039 | |
Depreciation and amortization | | 1,110 | | | 1,917 | | | 1,082 | | | 4,109 | |
| | | | | | | | |
Loss (gain) on asset dispositions, net | | (1) | | | 37 | | | 2 | | | 38 | |
Transaction and integration costs | | 34 | | | — | | | 139 | | | 173 | |
Operating income (loss) | | $ | 3,457 | | | $ | (581) | | | $ | (5,310) | | | $ | (2,434) | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
Six Months Ended June 30, 2020 | | Franchised Hotels | | Company Operated Hotels | | Other | | Total |
Revenue | | $ | 19,694 | | | $ | 7,800 | | | $ | — | | | $ | 27,494 | |
Operating expenses: | | | | | | | | |
Segment and other operating expenses | | 23,187 | | | 9,456 | | | 6,758 | | | 39,401 | |
Depreciation and amortization | | 1,776 | | | 1,289 | | | 1,882 | | | 4,947 | |
Asset impairment | | — | | | 1,760 | | | — | | | 1,760 | |
Loss (gain) on asset dispositions, net | | — | | | (7,781) | | | 220 | | | (7,561) | |
Transaction and integration costs | | — | | | 53 | | | 1,347 | | | 1,400 | |
Operating income (loss) | | $ | (5,269) | | | $ | 3,023 | | | $ | (10,207) | | | $ | (12,453) | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
Six Months Ended June 30, 2019 | | Franchised Hotels | | Company Operated Hotels | | Other | | Total |
Revenue | | $ | 27,695 | | | $ | 27,206 | | | $ | 8 | | | $ | 54,909 | |
Operating expenses: | | | | | | | | |
Segment and other operating expenses | | 19,706 | | | 25,324 | | | 8,106 | | | 53,136 | |
Depreciation and amortization | | 2,024 | | | 3,873 | | | 1,659 | |