Red Lion Hotels Corp (RLH) SEC Filing 10-Q Quarterly report for the period ending Sunday, June 30, 2019

Net loss attributable to RLH Corporation for the quarter was $2.8 million or ($0.11) per share compared to a net loss attributable to RLH Corporation of $2.3 million or ($0.10) per share in the prior year period, primarily due to the disposition and lost revenue from hotels sold during 2018, partially offset by reductions in selling, general, administrative and other expenses.

Franchise related revenues grew 8.0% year-over-year to $14.7 million.

Adjusted EBITDA for the second quarter was $3.7 million, as compared to $6.6 million in the second quarter of 2018. The year-over-year change was primarily attributable to the elimination of the $2.6 million of EBITDA from the hotels sold throughout 2018, a $900,000 decrease in year over year hotel segment performance, partially offset by a $100,000 improvement in franchise EBITDA and $500,000 reduction in SG&A.

Franchise Segment Adjusted EBITDA increased 2.4% year-over-year to $4.9 million while Franchise Segment Adjusted EBITDA margin was 33%.

Executed 40 franchise agreements comprised of five upscale and midscale hotels and 35 select service hotels; bringing the total executed franchise agreements for the first half of the year to 96; of these, 30 are for new locations.

Raised franchise license agreement expectations for 2019 to a range of 175 to 210 from the prior guidance range of 160 to 200 license agreements.

Revised Corporate Selling, General and Administrative outlook to a range of $27.5 million to $29.5 million from a range of $29.5 million to $31.5 million reflecting a decrease in stock-based compensation, increased operating efficiencies and staffing adjustments.