Red Lion Hotels Corporation (RLH) saw its loss narrow to $2.35 million, or $0.11 a share for the quarter ended Dec. 31, 2016. In the previous year period, the company reported a loss of $6.33 million, or $0.32 a share. On the other hand, adjusted net loss for the quarter narrowed to $4.20 million, or $0.20 a share from a loss of $6.14 million or $0.31 a share, a year ago.
Revenue during the quarter grew 24.21 percent to $40.81 million from $32.86 million in the previous year period. Gross margin for the quarter expanded 1056 basis points over the previous year period to 17.38 percent. Operating margin for the quarter stood at negative 2.73 percent as compared to a negative 14.14 percent for the previous year period.
Operating loss for the quarter was $1.11 million, compared with an operating loss of $4.64 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $2.79 million compared to negative $0.63 million in the prior year second quarter. At the same time, adjusted EBITDA margin stood at 6.83 percent for the quarter compared to negative 1.91 percent in the last year period.
"Our most recent results mark a strong finish to a formative year for RLHC - we continued our transformation to an asset light model and substantially grew our franchise business with our recent acquisition that enabled us to establish a national and international presence. These strategic actions further broadened our brand offerings, with the addition of multiple brands and over 1,000 franchised hotels. More importantly it has raised awareness for RLHC within the lodging industry and is generating attention from hoteliers interested in joining our growing platform," said RLHC President and Chief Executive Officer Greg T. Mount.
Operating cash flow drops significantly
Red Lion Hotels Corporation has generated cash of $5.56 million from operating activities during the year, down 60.51 percent or $8.52 million, when compared with the last year.
The company has spent $30.69 million cash to meet investing activities during the year as against cash outgo of $30.08 million in the last year.
Cash flow from financing activities was $37.53 million for the year, down 18.13 percent or $8.31 million, when compared with the last year.
Cash and cash equivalents stood at $47.61 million as on Dec. 31, 2016, up 35.25 percent or $12.41 million from $35.20 million on Dec. 31, 2015.
Working capital declines
Red Lion Hotels Corporation has witnessed a decline in the working capital over the last year. It stood at $30.57 million as at Dec. 31, 2016, down 18.24 percent or $6.82 million from $37.39 million on Dec. 31, 2015. Current ratio was at 1.84 as on Dec. 31, 2016, down from 2.34 on Dec. 31, 2015.
Debt moves up
Red Lion Hotels Corporation has witnessed an increase in total debt over the last one year. It stood at $108.33 million as on Dec. 31, 2016, up 23.73 percent or $20.77 million from $87.56 million on Dec. 31, 2015. Short-term debt stood at $1.47 million as on Dec. 31, 2016. Total debt was 31.44 percent of total assets as on Dec. 31, 2016, compared with 30.48 percent on Dec. 31, 2015. Debt to equity ratio was at 0.57 as on Dec. 31, 2016, up from 0.52 as on Dec. 31, 2015.
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