Red Lion Hotels Corp (RLH) SEC Filing 10-Q Quarterly report for the period ending Tuesday, March 31, 2020

Closed the quarter with $37.8 million in cash and cash equivalents, no corporate debt, and only $5.6 million in debt secured by our hotel RL Olympia in our joint venture.

Net loss attributable to RLH Corporation for the first quarter of 2020 was $(8.1) million or $(0.32) per share compared to a net loss of $(4.3) million or $(0.17) per share in the prior year period. The year-over-year change was primarily driven by $9.7 million of bad debt expense largely resulting from the economic impact of COVID-19 on receivable balances such as those associated with Inner Circle and other former franchisees. Net loss this quarter also included a $1.8 million asset impairment on the Red Lion Hotel Seattle Airport primarily due to the impact of COVID-19, a $1.3 million loss associated with the retirement of debt, and $0.5 million of employee separation costs. This was partially offset by a $7.9 million gain from the disposal of two hotel properties.

Adjusted EBITDA for the quarter was $(10.3) million compared to $1.0 million for the prior year period.

In the core franchise hotel segment, first quarter revenues were $10.9 million compared to $13.0 million in the prior year period; Core Adjusted EBITDA was a loss of $(10.0) million, compared to a loss of $(0.4) million in the prior year period.

Executed 70 franchise agreements, an increase of 25% year-over-year. The agreements are comprised of 6 midscale hotels and 64 economy hotels; of these, 16 are for new locations. Offsetting new franchise agreements were 44 terminations, a 21% improvement year-over-year, comprised of 1 midscale hotel and 43 economy hotels.

Completed the sale of Hotel RL Washington D.C. and Red Lion Hotel Anaheim for net proceeds of $9.0 million, after closing costs, property level debt repayments and required credit facility repayment.