Revenue during the quarter grew 4.28 percent to $45.61 million from $43.74 million in the previous year period.

Cost of revenue went up marginally by 1.88 percent or $0.59 million during the quarter to $31.94 million. Gross margin for the quarter expanded 165 basis points over the previous year period to 29.98 percent.

Total expenses were $38.88 million for the quarter, down 1.11 percent or $0.44 million from year-ago period. Operating margin for the quarter expanded 465 basis points over the previous year period to 14.76 percent.

Operating income for the quarter was $6.73 million, compared with $4.42 million in the previous year period. However, the adjusted EBITDA for the quarter was almost stable at $10.93 million, when compared with the prior year period. At the same time, adjusted EBITDA margin contracted 103 basis points in the quarter to 23.97 percent from 25 percent in the last year period.

Other income during the quarter was $1.95 million, up 7.49 percent or $0.14 million from year-ago period.

RLHC President and Chief Executive Officer Greg T. Mount stated, “We are very encouraged that RLHC delivered another quarter of strong RevPAR growth across all segments versus the industry, with system same store RevPAR growing 3.4% year over year. These positive results can be attributed to the transformation the Company has undergone over the last 18 months. Furthermore, with the recent addition of Vantage and more than 58,000 rooms to the system, we have already started selling our full spectrum of brands with immediate success, and the integration is progressing as planned. Our transformation to an asset light franchise model is complete and our efforts to create additional long-term shareholder value are well underway.”

The company has spent $29.76 million cash to meet investing activities during the nine month period as against cash inflow of $2.20 million in the last year period

Cash flow from financing activities was $18.77 million for the nine month period, down 69.10 percent or $41.96 million, when compared with the last year period.

Cash and cash equivalents stood at $18.93 million as on Sep. 30, 2016, down 75.06 percent or $56.96 million from $75.89 million on Sep. 30, 2015.

Receivables increase substantially
Net receivables were at $15.57 million as on Sep. 30, 2016, up 43.07 percent or $4.69 million from year-ago.  

Investments stood at $0.02 million as on Sep. 30, 2016, down 99.68 percent or $7.84 million from year-ago.

Total assets grew 5.79 percent or $17.95 million to $327.64 million on Sep. 30, 2016. On the other hand, total liabilities were at $154.59 million as on Sep. 30, 2016, up 14.02 percent or $19.01 million from year-ago.

Return on assets moved up 16 basis points to 1.62 percent in the quarter. At the same time, return on equity moved up 87 basis points to 1.33 percent in the quarter.