Red Lion Hotels Corp (RLH) SEC Filing 10-Q Quarterly report for the period ending Sunday, September 30, 2018

Net income for the three months ended September 30, 2018 was $8.9 million or $0.35 per diluted share compared to net income of $2.8 million or $0.11 per diluted share in the prior year period.

Adjusted EBITDA from continuing operations for the third quarter was $4.6 million, compared to $11.4 million for the year-ago period. The change in adjusted EBITDA was primarily due to the lost contribution from the nine company owned hotels sold during the year.

Franchise revenue rose to $15.1 million; up 19.1% year over year.

Division profit from the Franchise segment increased 55% to $5.9 million from $3.8 million in the third quarter of 2017. The Franchise segment divisional profit margin expanded 900 basis points to 39.1%.

As of September 30, 2018, the Company sold 9 hotels which generated gross proceeds of more than $116 million. Sales early in the third quarter included a Red Lion Hotel in Port Angeles, Washington, and Hotel RL Spokane totaling $54.5 million.

Of the remaining hotels being marketed, Salt Lake City, Kalispell and Anaheim are in active stages of diligence.

The Company has executed 132 franchise agreements through the date of this release against its target of 150 to 200 for 2018, in addition to the Knights Inn franchises acquired in May 2018.

Launched state of the art and streamlined website redlion.com, which allows guests to book a room in as little as three clicks. Enhanced Hello Rewards program to include other features such as Hello Bucks and Hello Rates.