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8-K - FORM 8-K - LODGENET INTERACTIVE CORP | c62439e8vk.htm |
Exhibit 99.1
FOR IMMEDIATE RELEASE
CONTACTS:
Ann Parker
Director of Corporate Communications
LodgeNet Interactive Corporation
(605) 988-1000
communications@lodgenet.com
Ann Parker
Director of Corporate Communications
LodgeNet Interactive Corporation
(605) 988-1000
communications@lodgenet.com
LODGENET COMMENTS ON RECENT ANALYST REPORT
SIOUX FALLS, SD, January 19, 2011 LodgeNet Interactive Corporation (NASDAQ: LNET), the
leading provider of media and connectivity solutions to hospitality and healthcare businesses,
today issued the following comment regarding a research report dated January 19, 2011 by
Craig-Hallum Capital Group:
Today an analyst reported that one of LodgeNets largest hotel customers has implemented a
policy regarding adult content, and raised concerns regarding the impact of such a decision on
LodgeNets Guest Entertainment revenues. The Company was not aware of Craig-Hallums report in
advance, but believes that the following information should be considered in connection with the
report in order to clarify the contents of the report and assure that the information contained
therein is not inaccurate or misleading.
| LodgeNet has always offered hotels options to restrict mature content. The customer in question has an option to restrict adult content, but only beginning in 2013. The customer and LodgeNet have adjusted the economic model in such a way as to assure that the Company is economically indifferent to decisions made by the brand to offer mature content. | ||
| No existing agreements are affected, and future agreements with this customer are expected to be structured in a manner that also do not have a material adverse impact on the Companys return on invested capital. Similarly, there is no expected economic impact as a result of this agreement in either 2011 or 2012. There is no change in programming expected at currently installed properties in 2011 or 2012. | ||
| The Companys ongoing relationship with the customer in question is good, and LodgeNet is actively engaged with the customer in discussions regarding the upgrade of their existing systems to high-definition and providing new services that would generate incremental revenues. | ||
| It has been widely disclosed the Company has been diversifying its revenue base, and is less reliant on revenue from mature content than at any point in the past. The Companys next-generation Envision system integrates in-room technology that connects the Companys interactive TV system to the cloud and permits streaming video and other applications that would generate incremental revenues. |
| The Company stands behind its guidance, and has not adjusted its projections or outlook as a result of the agreement referenced in the report. The information in the report is not expected to have any impact on the Companys covenant compliance. | ||
| The report also states that another hotel chain plans to remove 50,000 rooms of video-on-demand over the next six months. The decision of hotels in the economy sector to remove VOD systems and revert to free-to-guest programming only has also been widely reported. The systems in question are nearly all tape-based systems at the end of their useful life, and which generate marginal VOD revenues. The loss of these rooms has been anticipated, and will not have a significant impact on the Companys revenues or prospects. |
Questions regarding the foregoing should be directed to the Companys investor relations
department.
About LodgeNet
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 1.8 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.
Special Note Regarding Forward-Looking Statement
Certain statements in this press release constitute forward-looking statements. When used in this
press release, 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 fourth quarter
2010 guidance and outlook, 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: changes in demand for our products and services; programming
availability, timeliness, quality and costs; relationships with customers and property owners, in
particular as we reduce capital investment; compliance with credit facility covenants; risks of
diversification into new products, services, or markets; 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.
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