Attached files
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8-K - FORM 8-K - LODGENET INTERACTIVE CORP | c57698e8vk.htm |
EX-99.2 - EX-99.2 - LODGENET INTERACTIVE CORP | c57698exv99w2.htm |
Exhibit 99.1
Ann Parker, Director
|
Mike Smargiassi | |
Investor Relations
|
Brainerd Communicators | |
605-988-1000
|
212-986-6667 | |
ann.parker@lodgenet.com
|
smarg@braincomm.com |
LODGENET REPORTS RESULTS FOR FIRST QUARTER 2010
Revenue and Adjusted Operating Cash Flow* In Line With Guidance
Free Cash Flow** of $23.6 Million, Up from $15.6 Million
Long-Term Debt Reduced by 9%, or $42.9 Million
Free Cash Flow** of $23.6 Million, Up from $15.6 Million
Long-Term Debt Reduced by 9%, or $42.9 Million
SIOUX FALLS, SD, April 22, 2010 LodgeNet Interactive Corporation (Nasdaq:LNET) today
reported quarterly revenue of $118.1 million compared to $128.1 million in the first quarter of
2009. The Company reported a net loss of $(2.5) million compared to net income of $6.0 million for
the prior year period, which included a $9.3 million or $0.41 per share gain related to the
acquisition of $31.5 million of our outstanding debt. Net loss attributable to common stockholders
was $(3.9) million or $(0.17) per share (basic and diluted) for the first quarter of 2010 compared
to net income attributable to common stockholders of $6.0 million or $0.27 per share (basic) for
the first quarter of 2009. LodgeNet also reported $23.6 million in free cash flow (defined as cash
provided by operating activities less cash used for investing activities, including growth-related
capital) for the current quarter compared to $15.6 million in the prior year period.
The following financial highlights are in thousands of dollars, except per-share data and average
shares outstanding:
Three Months Ended March 31, | ||||||||
2010 | 2009 | |||||||
Total revenue |
$ | 118,052 | $ | 128,092 | ||||
Income from operations |
6,634 | 7,121 | ||||||
Net (loss) income |
(2,502 | ) | 5,958 | |||||
Net (loss) income attributable to common stockholders |
(3,939 | ) | 5,958 | |||||
Net (loss) income per common share (basic) |
$ | (0.17 | ) | $ | 0.27 | |||
Net (loss) income per common share (diluted) |
$ | (0.17 | ) | $ | 0.26 | |||
Adjusted Operating Cash Flow * |
$ | 29,122 | $ | 34,604 | ||||
Average shares outstanding (basic) |
22,746,527 | 22,479,164 | ||||||
Average shares outstanding (diluted) |
22,746,527 | 22,498,914 |
* | Adjusted Operating Cash Flow is a non-GAAP measure which we define as Operating Income exclusive of depreciation, amortization, share-based compensation, and restructuring and reorganization expenses. | |
** | Free Cash Flow, a non-GAAP measure, is defined by the Company as cash provided by operating activities less cash used for investing activities, including growth related capital. |
LodgeNet Q1 2010 Earnings 2-2-2-2
We delivered a solid quarter, in line with our guidance, as we continued to benefit from our
initiatives and a conservative operating plan, said Scott C. Petersen, LodgeNet Chairman and CEO.
Our revenue diversification initiatives continue to move forward as we posted increased revenue
from our Hotel Services, Advertising Services and Healthcare businesses. Additionally, last years
first quarter benefited from two significant one-time events: a one-time benefit from an employee
unpaid leave program which reduced operating expenses by $1.1 million and the repurchase of $31.5
million of our bank debt in the open market, resulting in a non-operating gain which contributed
$9.3 million to net income. Excluding those two events, we managed our cost structure flat to last
year, and we continued to deliver improved operating results.
We continued to strengthen our balance sheet during the quarter, said CFO Gary H. Ritondaro.
On a net debt basis, we have essentially reached the lowest leverage ratio required under our
Credit Facility, a favorably priced facility which extends into 2014. Free cash flow increased
51.3% to $23.6 million as cash from operations was up $7.2 million, or 34.1% as compared to last
year, while our capital investment activities were generally in line with the prior period.
Additionally, we utilized the $13.7 million of net proceeds raised from our recent equity offering
to reduce debt at quarters end, determining that to be the best use of those proceeds in the
near-term. As a result, we reduced long-term debt by $42.9 million, or 9.1%, during the quarter.
As we accelerate our high-definition conversions in the second half of the year, we will allocate
more of our internally generated cash flow to fully fund our plan to more than double the number of
rooms we originally planned to convert to our HD platform in 2010.
The equity proceeds we raised in March will allow us to accelerate our growth plans in the
second half of the year, said Petersen. Our high definition (HD) interactive system is producing
50% more revenue than our average room and we are seeing strong demand from hoteliers for this
platform. We are presently targeting a select group of our existing customers with proposals that
will take them to the new HD system in return for a long-term extension of our service agreement.
As the economy improves, we remain focused on our best growth opportunities to drive long-term
value for our clients and shareholders.
RESULTS FROM OPERATIONS
THREE MONTHS ENDED MARCH 31, 2010 VERSUS
THREE MONTHS ENDED MARCH 31, 2009
THREE MONTHS ENDED MARCH 31, 2010 VERSUS
THREE MONTHS ENDED MARCH 31, 2009
Total revenue for the first quarter of 2010 was $118.1 million, a decrease of $10.0 million or
7.8%, compared to the same period of 2009. The decrease in revenue was primarily from Guest
Entertainment services and System Sales and Related Services, which was offset, in part, by
increases in revenue from Hotel Services, Advertising Services and Healthcare.
Hospitality revenue, which includes Guest Entertainment, Hotel Services, System Sales and
Related Services, and Advertising Services, decreased $10.3 million or 8.2%, to $115.5 million for
the first quarter of 2010 as compared to $125.8 million for the prior year quarter. Average
monthly Hospitality revenue per room was $21.71 for the first quarter of 2010, a decrease of 3.9%
as compared to $22.58 per room in the first quarter of 2009.
Guest Entertainment revenue, which includes on-demand entertainment such as movies, games,
music and other guest interactive services delivered through the television, declined $7.4 million
or 9.7%, to $69.1 million in the first quarter of 2010 versus the first quarter of 2009. The
decline in per room revenue continues to be driven by a conservative consumer buying pattern of
travelers.
Hotel Services revenue, which includes recurring revenue from hotels for television
programming and broadband Internet service and support, increased $1.5 million or 4.6%, to $34.5
million in the first quarter of 2010 versus $33.0 million for the first quarter of 2009. On a
per-room basis, monthly Hotel Services revenue for the first quarter of 2010 increased 9.5% to
$6.48 compared to $5.92 for the first quarter of 2009. Monthly television programming revenue per
room increased 9.8% to $5.92 for the first quarter of 2010 as compared to $5.39 for the first
quarter of 2009. This increase resulted primarily from the continued installation of high
definition television systems and additional TV programming services. Recurring broadband Internet
revenue per room increased 5.7% to $0.56 for the first quarter of 2010 compared to $0.53 for the
same period of 2009.
System Sales and Related Services revenue, including sales of TV programming equipment,
broadband Internet equipment, HDTV installations and other services to hotels, decreased $5.0
million or 34.2%, to $9.6 million during the first quarter of 2010 compared to $14.6 million in the
first quarter of 2009. The decrease was due in part to a material HDTV equipment conversion
contract, which contributed approximately $4.2 million of revenue in the first quarter of 2009.
LodgeNet Q1 2010 Earnings 3-3-3-3
The Hotel Networks (THN) our advertising services subsidiary, generated revenue of $2.4
million, an increase of 32.9% compared to the $1.8 million generated in the first quarter of 2009.
This increase was the result of an increase in channel access fee revenue.
Other Revenue includes the sale of interactive systems and services to Healthcare facilities
increased $0.3 million or 11.5%, to $2.6 million during the current quarter compared to $2.3
million in the prior year quarter. During the quarter, we installed 1,133 beds in five facilities
compared to 891 beds in six facilities during the prior year period.
Total direct costs (exclusive of operating expenses and depreciation and amortization
discussed separately below) decreased 8.4% or $6.1 million, to $66.6 million in the first quarter
of 2010 as compared to $72.7 million in the first quarter of 2009. The decrease in total direct
costs was primarily due to lower system and equipment costs of $4.1 million and decreased
commissions and royalties of $2.6 million, which vary with revenue. Partially offsetting the
reductions was an increase to incremental TV programming costs of $0.6 million, which vary with the
number of rooms served and the services provided. Total direct costs as a percentage of revenue
was 56.4% this quarter as compared to 56.8% reported for the first quarter of 2009.
System Operations expenses increased $0.2 million or 1.8%, to $10.5 million in the first
quarter of 2010 as compared to $10.3 million in the first quarter of 2009. The increase resulted
from higher fuel costs and a one-time benefit of $0.4 million related to an employee unpaid leave
program during the first quarter of 2009. As a percentage of revenue, System Operations expenses
were 8.9% this quarter as compared to 8.1% in the first quarter of 2009. Per average installed
room, System Operations expenses were $1.98 per room per month compared to $1.85 in the prior year
quarter.
Selling, General and Administrative (SG&A) expenses increased $1.3 million or 12.0%, to $12.1
million in the current quarter as compared to $10.8 million in the first quarter of 2009. The
increase resulted primarily from increased employee health insurance benefits costs in addition to
a one-time benefit of $0.7 million related to an employee unpaid leave program during the first
quarter of 2009. As a percentage of revenue, SG&A expenses were 10.3% in the current quarter as
compared to 8.4% in the first quarter of 2009. SG&A expenses per average installed room were $2.28
as compared to $1.94 in the first quarter of 2009.
Depreciation and amortization expenses decreased $4.9 million, or 18.2% to $22.2 million in
the first quarter of 2010 as compared to $27.1 million in the first quarter of 2009. The decline
was due to assets becoming fully depreciated and the reduction in capital investments over the past
two years. As a percentage of revenue, total depreciation and amortization expenses were 18.8% in
the first quarter of 2010 versus 21.1% in the first quarter of 2009.
As a result of factors previously described, operating income decreased $0.5 million, to $6.6
million in the first quarter of 2010 as compared to $7.1 million in the first quarter of 2009,
which included a one-time benefit of $1.1 million from an employee unpaid leave program. Adjusted
Operating Cash Flow, a non-GAAP measure which we define as operating income exclusive of
depreciation, amortization, share-based compensation, impairment, and restructuring and
reorganization expenses, was $29.1 million for the first quarter of 2010 as compared to $34.6
million in the first quarter of 2009 driven by the decline in Guest Entertainment revenue as
previously discussed.
Interest expense was $8.7 million in the first quarter of 2010 versus $9.9 million in the
first quarter of 2009. The decrease resulted primarily from the change in weighted average
long-term debt, which decreased to $459.1 million during the first quarter of 2010 from $570.9
million in the first quarter of 2009. The weighted average interest rate during the first quarter
of 2010 was 6.99% versus 6.92% for the first quarter 2009. Interest expense for the first quarter
of 2010 included $0.7 million related to the unrealized loss on an interest rate swap.
Net loss for the quarter was $(2.5) million compared to net income of $6.0 million for the
first quarter of 2009. Net loss attributable to common stockholders was $(3.9) million for the
first quarter of 2010, compared to net income of $6.0 million in the prior year quarter. The 2009
net income included a $9.3 million, or $0.41 per common share, gain related to the acquisition of
$31.5 million of our outstanding debt, in addition to a one-time benefit of $1.1 million related to
our employee unpaid leave program. Net loss per share attributable to common stockholders was
$(0.17) for the first quarter of 2010 (basic and diluted) compared to net income per share
attributable to common stockholders of $0.27 (basic) in the first quarter of 2009.
LodgeNet Q1 2010 Earnings 4-4-4-4
For the first quarter of 2010, cash provided by operating activities was $28.1 million a 34.1%
increase as compared to $20.9 million in the first quarter of 2009. Cash used for property and
equipment additions, including growth related capital, was $4.5 million during the first quarter of
2010 compared to $5.3 million in the first quarter of 2009. In March of 2010, we made the required
Term B quarterly payment of $1.3 million and also made an optional payment of $44.0 million. Additionally, we used $1.4 million of cash for preferred stock dividends in the first quarter of
2010. During the first quarter of 2009, we made the required Term B repayment of $1.5 million and
made an optional payment of $6.7 million against the Term B loan. We did not have preferred stock
in the first quarter of 2009. The leverage ratio at the end of this quarter, calculated on a
consolidated debt basis, was 3.59 times versus the covenant of 3.75 times. Cash as of March 31,
2010 was $9.9 million.
Continuing with our plan to moderate capital investment, we installed 4,730 new rooms and
converted 4,752 rooms to our HD and digital platforms in the first quarter of 2010 as compared to
5,400 new rooms and 2,636 converted rooms during the first quarter of 2009. The average investment
per newly-installed HD room decreased to $271 per room during the first quarter of 2010, compared
to $339 per room during 2009. Factors contributing to the 20.1% or $68 decline included a larger
average size of property installed during the first quarter of 2010 versus 2009, lower overhead
costs and lower component costs. The average investment per converted room also decreased, by
15.4%, to $204 during the first quarter of 2010, compared to $241 during 2009, due to the same
general factors noted above.
Outlook
For the second quarter of 2010, LodgeNet expects to report revenue in the range of $115.0
million to $119.0 million. Adjusted Operating Cash Flow* in the second quarter of 2010 is expected
to be in a range from $28.0 million to $31.0 million while Net Income (Loss) to Common is expected
to be in a range of $(3.0) to $(1.0). This equates to Net Income (Loss) per common share of a range
from $(0.12) to $(0.04).
For the first six-months, Free Cash Flow**, excluding the preferred stock dividend, is
anticipated to be in a range of $33.0 million to $35.0 million.
The Company will also host a teleconference to discuss its results April 22, 2010, at 5:00 P.M.
Eastern Time. A live webcast of the teleconference will also be available and can be accessed on
the LodgeNet website at www.lodgenet.com. The webcast will be archived on the LodgeNet website for
one month. Additionally, the Company has posted slides at its website under the For Investors,
Company Presentations section, which will be referenced during the conference call.
Special Note Regarding the Use of Non-GAAP Financial Information
To supplement our consolidated financial statements presented in accordance with accounting
principles generally accepted in the United States (GAAP), we use adjusted operating cash flow,
and free cash flow, which are non-GAAP measures derived from results based on GAAP. The
presentation of this additional information is not meant to be considered superior to, in isolation
of, or as a substitute for, results prepared in accordance with GAAP. Adjusted operating cash flow
is a non-GAAP measure which we define as operating income (loss) exclusive of depreciation,
amortization, share-based compensation, restructuring and integration and reorganization. Free
Cash Flow, a non-GAAP measure, is defined by the Company as cash provided by operating activities
less cash used for investing activities, including growth related capital. These non-GAAP measures
are key liquidity indicators but should not be construed as an alternative to GAAP measures or as a
measure of our profitability or performance. We provide information about these measures because
we believe it is a useful way for us, and our investors, to measure our ability to satisfy cash
needs, including one-time charges such as restructuring, reorganization or integration, interest
payments on our debt, taxes and capital expenditures. Our method of computing these measures may
not be comparable to other similarly titled measures of other companies.
About LodgeNet Interactive
LodgeNet Interactive Corporation is the leading provider of media and connectivity solutions
designed to meet the unique needs of hospitality, healthcare and other guest-based businesses.
LodgeNet Interactive serves approximately 1.9 million hotel rooms worldwide in addition to
healthcare facilities throughout the United States. The Companys services include: Interactive
Television Solutions, Broadband Internet Solutions, Content Solutions, Professional Solutions and
Advertising Media Solutions. LodgeNet Interactive Corporation owns and operates businesses under
the industry leading brands: LodgeNet, LodgeNetRX, and The Hotel Networks. LodgeNet Interactive
is listed on NASDAQ and trades under the symbol LNET. For more information, please visit
www.lodgenet.com.
LodgeNet Q1 2010 Earnings 5-5-5-5
Special Note Regarding Forward-Looking Statement
Certain statements in this press release constitute forward-looking statements. When used in
this press release and in the prepared remarks during our April 22 conference call, as well as in
response to the questions during the conference call, the words intends, expects,
anticipates, estimates, believes, goal, no assurance and similar expressions, and
statements which are made in the future tense or refer to future events or developments, including,
without limitation, those related to our second quarter 2010 guidance, including revenue, adjusted
operating cash flow and free cash flow, as well as the number of rooms to be converted to our HD
platform, are intended to identify such forward-looking statements. Such forward-looking
statements are subject to risks, uncertainties and other factors that could cause the actual
results, performance or achievements to be materially different from any future results,
performance or achievements expressed or implied by such forward-looking statements. Such factors
include, among others, the following: the effects of economic conditions, including general
financial conditions (including those represented recently by liquidity crises, government bailouts
and assistance plans, bank failures, and recessionary threats and developments); the economic
condition of the lodging industry, which can be particularly affected the financial conditions
referenced above, as well as by high gas prices, levels of unemployment, consumer confidence, acts
or threats of terrorism and public health issues; competition from providers of similar services
and from alternative systems for accessing in-room entertainment; competition from HSIA providers;
changes in demand for our products and services; programming availability, timeliness, quality and
costs; technological developments by competitors; developmental costs, difficulties and delays;
relationships with customers and property owners, in particular as we reduce capital investment;
the availability of capital to finance growth; compliance with credit facility covenants; the
impact of governmental regulations; potential effects of litigation; risks of expansion into new
markets; risks related to the security of our data systems; and other factors detailed, from time
to time, in our filings with the Securities and Exchange Commission. For any of the foregoing
reasons, our guidance and our actual financial results may not meet our expectations. These
forward-looking statements speak only as of the date of this press release. We expressly disclaim
any obligation or undertaking to release publicly any updates or revisions to any forward-looking
statements contained herein to reflect any change in our expectations with regard thereto or any
change in events, conditions or circumstances on which any such statement is based.
LodgeNet is a registered trademark of LodgeNet Interactive Corporation. All rights reserved. Other
names and brands may be claimed as the property of others.
(See attached financial and operational tables)
LodgeNet Q1 2010 Earnings 6-6-6-6
LodgeNet Interactive Corporation and Subsidiaries
Consolidated Balance Sheets (Unaudited)
(Dollar amounts in thousands, except share data)
Consolidated Balance Sheets (Unaudited)
(Dollar amounts in thousands, except share data)
March 31, | December 31, | |||||||
2010 | 2009 | |||||||
Assets |
||||||||
Current assets: |
||||||||
Cash |
$ | 9,928 | $ | 17,011 | ||||
Accounts receivable, net |
53,193 | 51,706 | ||||||
Other current assets |
9,008 | 9,189 | ||||||
Total current assets |
72,129 | 77,906 | ||||||
Property and equipment, net |
191,761 | 206,663 | ||||||
Debt issuance costs, net |
5,159 | 6,005 | ||||||
Intangible assets, net |
103,838 | 106,041 | ||||||
Goodwill |
100,081 | 100,081 | ||||||
Other assets |
12,104 | 11,658 | ||||||
Total assets |
$ | 485,072 | $ | 508,354 | ||||
Liabilities and Stockholders Deficiency |
||||||||
Current liabilities: |
||||||||
Accounts payable |
$ | 50,196 | $ | 40,040 | ||||
Current maturities of long-term debt |
5,561 | 6,101 | ||||||
Accrued expenses |
18,087 | 19,137 | ||||||
Deferred revenue |
16,982 | 17,531 | ||||||
Total current liabilities |
90,826 | 82,809 | ||||||
Long-term debt |
421,474 | 463,845 | ||||||
Other long-term liabilities |
29,999 | 32,687 | ||||||
Total liabilities |
542,299 | 579,341 | ||||||
Commitments and contingencies |
||||||||
Stockholders deficiency: |
||||||||
Preferred stock, $.01 par value, 5,000,000 shares authorized; Series B cumulative perpetual convertible, 10%, 57,500 issued and outstanding at March 31, 2010 and December 31, 2009, respectively (liquidation preference of $1,000 per share or $57,500,000 total) |
1 | 1 | ||||||
Common stock, $.01 par value, 50,000,000 shares authorized; 25,025,414 and 22,537,664 shares outstanding at March 31, 2010 and December 31, 2009, respectively |
251 | 225 | ||||||
Additional paid-in capital |
391,767 | 379,223 | ||||||
Accumulated deficit |
(428,713 | ) | (426,211 | ) | ||||
Accumulated other comprehensive loss |
(20,533 | ) | (24,225 | ) | ||||
Total stockholders deficiency |
(57,227 | ) | (70,987 | ) | ||||
Total liabilities and stockholders deficiency |
$ | 485,072 | $ | 508,354 | ||||
The accompanying notes are an integral part of these consolidated financial statements.
LodgeNet Q1 2010 Earnings 7-7-7-7
LodgeNet Interactive Corporation and Subsidiaries
Consolidated Statements of Operations (Unaudited)
(Dollar amounts in thousands, except share data)
Consolidated Statements of Operations (Unaudited)
(Dollar amounts in thousands, except share data)
Three Months Ended | ||||||||
March 31, | ||||||||
2010 | 2009 | |||||||
Revenues: |
||||||||
Hospitality and Advertising Services |
$ | 115,499 | $ | 125,802 | ||||
Other |
2,553 | 2,290 | ||||||
Total revenues |
118,052 | 128,092 | ||||||
Direct costs and operating expenses: |
||||||||
Direct costs (exclusive of operating expenses and
depreciation and amortization shown separately below): |
||||||||
Hospitality and Advertising Services |
65,261 | 71,794 | ||||||
Other |
1,346 | 953 | ||||||
Operating expenses: |
||||||||
System operations |
10,515 | 10,326 | ||||||
Selling, general and administrative |
12,115 | 10,818 | ||||||
Depreciation and amortization |
22,173 | 27,105 | ||||||
Restructuring charge |
3 | 107 | ||||||
Other operating expense (income) |
5 | (132 | ) | |||||
Total direct costs and operating expenses |
111,418 | 120,971 | ||||||
Income from operations |
6,634 | 7,121 | ||||||
Other income and (expenses): |
||||||||
Interest expense |
(8,682 | ) | (9,881 | ) | ||||
Gain on extinguishment of debt |
| 9,295 | ||||||
Loss on early retirement of debt |
(493 | ) | (541 | ) | ||||
Other income |
223 | 175 | ||||||
(Loss) income before income taxes |
(2,318 | ) | 6,169 | |||||
Provision for income taxes |
(184 | ) | (211 | ) | ||||
Net (loss) income |
(2,502 | ) | 5,958 | |||||
Preferred stock dividends |
(1,437 | ) | | |||||
Net (loss) income attributable to common stockholders |
$ | (3,939 | ) | $ | 5,958 | |||
Net (loss) income per common share (basic) |
$ | (0.17 | ) | $ | 0.27 | |||
Net (loss) income per common share (diluted) |
$ | (0.17 | ) | $ | 0.26 | |||
Weighted average shares outstanding (basic) |
22,746,527 | 22,479,164 | ||||||
Weighted average shares outstanding (diluted) |
22,746,527 | 22,498,914 | ||||||
The accompanying notes are an integral part of these consolidated financial statements.
LodgeNet Q1 2010 Earnings 8-8-8-8
LodgeNet Interactive Corporation and Subsidiaries
Consolidated Statements of Cash Flows (Unaudited)
(Dollar amounts in thousands)
Consolidated Statements of Cash Flows (Unaudited)
(Dollar amounts in thousands)
Three Months Ended March 31, | ||||||||
2010 | 2009 | |||||||
Operating activities: |
||||||||
Net (loss) income |
$ | (2,502 | ) | $ | 5,958 | |||
Adjustments to reconcile net (loss) income to net cash provided
by operating activities: |
||||||||
Depreciation and amortization |
22,173 | 27,105 | ||||||
Gain on extinguishment of debt (non-cash) |
| (9,295 | ) | |||||
Unrealized loss on derivative instruments |
658 | | ||||||
Loss on early retirement of debt |
493 | 541 | ||||||
Share-based compensation and restricted stock |
312 | 271 | ||||||
Other, net |
40 | (135 | ) | |||||
Change in operating assets and liabilities: |
||||||||
Accounts receivable, net |
(1,350 | ) | (4,449 | ) | ||||
Other current assets |
170 | 730 | ||||||
Accounts payable |
10,222 | 6,499 | ||||||
Accrued expenses and deferred revenue |
(1,521 | ) | (6,039 | ) | ||||
Other |
(597 | ) | (239 | ) | ||||
Net cash provided by operating activities |
28,098 | 20,947 | ||||||
Investing activities: |
||||||||
Property and equipment additions |
(4,525 | ) | (5,301 | ) | ||||
Net cash used for investing activities |
(4,525 | ) | (5,301 | ) | ||||
Financing activities: |
||||||||
Repayment of long-term debt |
(45,274 | ) | (8,200 | ) | ||||
Payment of capital lease obligations |
(287 | ) | (523 | ) | ||||
Purchase of long-term debt |
| (10,750 | ) | |||||
Proceeds from investment in long-term debt |
2,643 | 91 | ||||||
Proceeds from issuance of common stock, net of offering costs |
13,692 | | ||||||
Payment of dividends to preferred shareholders |
(1,437 | ) | | |||||
Exercise of stock options |
3 | | ||||||
Net cash used for financing activities |
(30,660 | ) | (19,382 | ) | ||||
Effect of exchange rates on cash |
4 | (23 | ) | |||||
Decrease in cash |
(7,083 | ) | (3,759 | ) | ||||
Cash at beginning of period |
17,011 | 10,800 | ||||||
Cash at end of period |
$ | 9,928 | $ | 7,041 | ||||
The accompanying notes are an integral part of these consolidated financial statements.
LodgeNet Q1 2010 Earnings 9-9-9-9
LodgeNet Interactive Corporation and Subsidiaries
Supplemental Data
Supplemental Data
1st Qtr 10 | 4th Qtr 09 | 3rd Qtr 09 | 2nd Qtr 09 | 1st Qtr 09 | ||||||||||||||||
Room Base Statistics |
||||||||||||||||||||
Total Rooms Served (1) |
1,911,842 | 1,909,323 | 1,934,229 | 1,956,562 | 1,973,472 | |||||||||||||||
Total Guest Entertainment Rooms (2) |
1,764,363 | 1,779,979 | 1,807,933 | 1,827,636 | 1,849,304 | |||||||||||||||
Total HD Rooms (3) |
239,984 | 231,588 | 221,633 | 210,262 | 199,290 | |||||||||||||||
Percent of Total Guest Entertainment Rooms |
13.6 | % | 13.0 | % | 12.3 | % | 11.5 | % | 10.8 | % | ||||||||||
Total Television Programming (FTG) Rooms (4) |
1,083,837 | 1,087,860 | 1,095,719 | 1,104,660 | 1,106,833 | |||||||||||||||
Percent of Total Guest Entertainment Rooms |
61.4 | % | 61.1 | % | 60.6 | % | 60.4 | % | 59.9 | % | ||||||||||
Total Broadband Internet Rooms (5) |
200,139 | 201,936 | 206,914 | 219,260 | 229,184 | |||||||||||||||
Percent of Total Rooms Served |
10.5 | % | 10.6 | % | 10.7 | % | 11.2 | % | 11.6 | % | ||||||||||
Revenue Per Room Statistics (per month) |
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Hospitality and Advertising Services |
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Guest Entertainment |
$ | 12.99 | $ | 12.61 | $ | 14.01 | $ | 13.60 | $ | 13.73 | ||||||||||
Hotel Services |
6.48 | 6.05 | 6.00 | 6.04 | 5.92 | |||||||||||||||
System Sales and Related Services |
1.80 | 1.66 | 1.69 | 1.74 | 2.61 | |||||||||||||||
Advertising Services |
0.44 | 0.33 | 0.30 | 0.31 | 0.32 | |||||||||||||||
Total Hospitality and Advertising Services |
21.71 | 20.65 | 22.00 | 21.69 | 22.58 | |||||||||||||||
Based on average Guest Entertainment rooms |
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Summary Operating Results |
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(Dollar amounts in thousands) |
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Hospitality and Advertising Services Revenue: |
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Guest Entertainment |
$ | 69,082 | $ | 67,979 | $ | 76,369 | $ | 74,980 | $ | 76,488 | ||||||||||
Hotel Services |
34,486 | 32,596 | 32,699 | 33,292 | 32,972 | |||||||||||||||
System Sales and Related Services |
9,591 | 8,955 | 9,230 | 9,601 | 14,581 | |||||||||||||||
Advertising Services |
2,340 | 1,799 | 1,657 | 1,699 | 1,761 | |||||||||||||||
Total Hospitality and Advertising Services |
115,499 | 111,329 | 119,955 | 119,572 | 125,802 | |||||||||||||||
Healthcare |
2,553 | 1,967 | 1,167 | 2,409 | 2,290 | |||||||||||||||
Total Revenue |
$ | 118,052 | $ | 113,296 | $ | 121,122 | $ | 121,981 | $ | 128,092 | ||||||||||
Adjusted Operating Cash Flow (6) |
$ | 29,122 | $ | 28,016 | $ | 30,039 | $ | 31,669 | $ | 34,604 | ||||||||||
Reconciliation of Adjusted Operating Cash Flow to Income From Operations |
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(Dollar amounts in thousands) |
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Adjusted Operating Cash Flow |
$ | 29,122 | $ | 28,016 | $ | 30,039 | $ | 31,669 | $ | 34,604 | ||||||||||
Depreciation and Amortization |
(19,954 | ) | (20,483 | ) | (21,992 | ) | (24,022 | ) | (24,638 | ) | ||||||||||
Amortization of Acquired Intangibles |
(2,219 | ) | (2,236 | ) | (2,236 | ) | (2,236 | ) | (2,467 | ) | ||||||||||
Share Based Compensation and Restricted Stock |
(312 | ) | (394 | ) | (389 | ) | (670 | ) | (271 | ) | ||||||||||
Restructuring Charge |
(3 | ) | (292 | ) | (128 | ) | (75 | ) | (107 | ) | ||||||||||
Income From Operations |
$ | 6,634 | $ | 4,611 | $ | 5,294 | $ | 4,666 | $ | 7,121 | ||||||||||
1 | Total rooms served represents rooms receiving one or more of our services including rooms served by international licensees. | |
2 | Guest Entertainment rooms, of which 86% are digital, receive one or more Guest Entertainment Services such as movies, video games, music or other interactive services. | |
3 | HD rooms are equipped with high-definition capabilities. | |
4 | Television programming (FTG) rooms receiving basic or premium television programming. | |
5 | Represents rooms receiving high-speed Internet service included in total rooms served. | |
6 | Adjusted Operating Cash Flow is a non-GAAP measure which we define as Income (Loss) From Operations exclusive of depreciation, amortization, share-based compensation, impairment, and restructuring and reorganization expenses. |