Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - Red Lion Hotels CORP | d896742d8k.htm |
| EX-99.1 - EX-99.1 - Red Lion Hotels CORP | d896742dex991.htm |
Exhibit 99.2
RED LION HOTELS CORPORATION
Unaudited Pro Forma Consolidated Balance Sheet
As of December 31, 2019
(In thousands, except share data)
| As Reported | Less: Previously Sold Hotel Assets (a) |
Previously Sold Hotel Pro Forma Adjustments |
Less: Anaheim Hotel Asset Sold |
Anaheim Pro Forma Adjustments |
Pro Forma | |||||||||||||||||||
| ASSETS |
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| Current assets: |
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| Cash and cash equivalents |
29,497 | (410 | )b | (213 | )g | 10,772 | j | 4 | g | 41,961 | ||||||||||||||
| 2,311 | h | |||||||||||||||||||||||
| Restricted cash |
2,311 | (2,311 | )h | — | ||||||||||||||||||||
| Accounts receivable, net |
15,143 | (74 | )g | (739 | )g | 14,330 | ||||||||||||||||||
| Notes receivable, net |
5,709 | 5,709 | ||||||||||||||||||||||
| Other current assets |
5,849 | (278 | )g | (127 | )g | 5,444 | ||||||||||||||||||
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| Total current assets |
58,509 | (410 | ) | (565 | ) | 10,772 | (862 | ) | 67,444 | |||||||||||||||
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| Property and equipment, net |
68,668 | (18,125 | )c | (12,408 | )c | 38,135 | ||||||||||||||||||
| Operating lease right-of-use assets |
48,283 | (10,810 | )e | (31,364 | )e | 6,109 | ||||||||||||||||||
| Goodwill |
18,595 | 18,595 | ||||||||||||||||||||||
| Intangible assets, net |
48,612 | 48,612 | ||||||||||||||||||||||
| Other assets, net |
3,851 | (703 | )c | 3,148 | ||||||||||||||||||||
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| Total assets |
246,518 | (30,048 | ) | (565 | ) | (33,000 | ) | (862 | ) | 182,043 | ||||||||||||||
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| LIABILITIES |
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| Current liabilities: |
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| Accounts payable |
5,510 | (412 | )g | (243 | )g | 4,855 | ||||||||||||||||||
| Accrued payroll and related benefits |
2,709 | (59 | )g | (211 | )g | 2,439 | ||||||||||||||||||
| Other accrued liabilities |
5,469 | (71 | )e | (94 | )g | (12 | )e | (408 | )g | 4,884 | ||||||||||||||
| Long-term debt, due within one year |
16,984 | (16,984 | )d | — | ||||||||||||||||||||
| Operating lease liabilities, due within one year |
4,809 | (966 | )e | (2,325 | )e | 1,518 | ||||||||||||||||||
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| Total current liabilities |
35,481 | (18,021 | ) | (565 | ) | (2,337 | ) | (862 | ) | 13,696 | ||||||||||||||
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| Long-term debt, due after one year, net of debt issuance costs |
5,576 | 5,576 | ||||||||||||||||||||||
| Line of credit, due after one year |
10,000 | (10,000 | )d | — | ||||||||||||||||||||
| Operating lease liabilities, due after one year |
46,592 | (11,938 | )e | (29,039 | )e | 5,615 | ||||||||||||||||||
| Deferred income and other long-term liabilities |
1,105 | (21 | )e | (85 | )e | 999 | ||||||||||||||||||
| Deferred income taxes |
743 | 743 | ||||||||||||||||||||||
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| Total liabilities |
99,497 | (29,980 | ) | (565 | ) | (41,461 | ) | (862 | ) | 26,629 | ||||||||||||||
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| Commitments and contingencies |
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| STOCKHOLDERS’ EQUITY |
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| RLH Corporation stockholders' equity |
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| Preferred stock - 5,000,000 shares authorized; $0.01 par value; no shares issued or outstanding |
— | — | ||||||||||||||||||||||
| Common stock - 50,000,000 shares authorized; $0.01 par value; 25,148,005 shares issued and outstanding |
251 | 251 | ||||||||||||||||||||||
| Additional paid-in capital, common stock |
181,608 | (1,307 | )i | 180,301 | ||||||||||||||||||||
| Accumulated deficit |
(36,875 | ) | (37 | )f | 8,461 | f | (28,451 | ) | ||||||||||||||||
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| Total RLH Corporation stockholders’ equity |
144,984 | (37 | ) | (1,307 | ) | 8,461 | — | 152,101 | ||||||||||||||||
| Noncontrolling interest |
2,037 | (31 | )f | 1,307 | i | 3,313 | ||||||||||||||||||
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| Total stockholders’ equity |
147,021 | (68 | ) | — | 8,461 | — | 155,414 | |||||||||||||||||
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| Total liabilities and stockholders’ equity |
246,518 | (30,048 | ) | (565 | ) | (33,000 | ) | (862 | ) | 182,043 | ||||||||||||||
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a - Reflects the removal of balances related to our Washington DC hotel sold in February 2020
b - Reflects the additional cash in excess of cash received from the sale of assets less selling costs required to repay outstanding debt
c - Reflects the book value of assets sold
d - Reflects the elimination of debt after full repayment
e - Reflects the leases and/or equipment financing assumed by the purchaser
f - Reflects the gain (loss) on sale
g - Reflects the settlement of working capital
h - Reflects the release of restricted cash related to the assets sold and repayment of debt
i - Reflects the elimination of the noncontrolling interest
j - Reflects the cash from the sale of assets less selling costs and the repayment of debt
RED LION HOTELS CORPORATION
Unaudited Pro Forma Consolidated Statement of Comprehensive Income (Loss)
For the year ended December 31, 2019
(In thousands, except per share data)
| As Reported | Less: Previously Sold Hotels Assets Sold (k) |
Previously Sold Hotels Pro Forma Adjustments |
Less: Anaheim Hotel Asset Sold |
Anaheim Pro Forma Adjustments |
Pro Forma | |||||||||||||||||||
| Revenue: |
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| Royalty |
22,121 | 304 | l | 248 | l | 22,673 | ||||||||||||||||||
| Marketing, reservations and reimbursables |
31,375 | 406 | l | 447 | l | 32,228 | ||||||||||||||||||
| Other franchise |
5,749 | 5,749 | ||||||||||||||||||||||
| Company operated hotels |
55,029 | (18,718 | ) | (13,344 | ) | 22,967 | ||||||||||||||||||
| Other |
14 | 14 | ||||||||||||||||||||||
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| Total revenues |
114,288 | (18,718 | ) | 710 | (13,344 | ) | 695 | 83,631 | ||||||||||||||||
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| Operating expenses: |
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| Selling, general, administrative and other expenses |
29,420 | 29,420 | ||||||||||||||||||||||
| Company operated hotels |
48,612 | (16,229 | ) | (11,132 | ) | 21,251 | ||||||||||||||||||
| Marketing, reservations and reimbursables |
29,292 | 406 | l | 447 | l | 30,145 | ||||||||||||||||||
| Depreciation and amortization |
14,567 | (3,402 | ) | (1,208 | ) | 9,957 | ||||||||||||||||||
| Asset impairment |
14,128 | (5,382 | ) | 8,746 | ||||||||||||||||||||
| Gain on asset dispositions, net |
(7,067 | ) | 7,287 | 220 | ||||||||||||||||||||
| Transaction and integration costs |
632 | (144 | ) | (69 | ) | 419 | ||||||||||||||||||
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| Total operating expenses |
129,584 | (17,870 | ) | 406 | (12,409 | ) | 447 | 100,158 | ||||||||||||||||
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| Operating income (loss) |
(15,296 | ) | (848 | ) | 304 | (935 | ) | 248 | (16,527 | ) | ||||||||||||||
| Other income (expense): |
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| Interest expense |
(5,157 | ) | 3,935 | 14 | (1,208 | ) | ||||||||||||||||||
| Loss on early retirement of debt |
(428 | ) | 273 | (155 | ) | |||||||||||||||||||
| Other income (expense), net |
161 | (2 | ) | 159 | ||||||||||||||||||||
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| Total other income (expense) |
(5,424 | ) | 4,206 | — | 14 | — | (1,204 | ) | ||||||||||||||||
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| Income (loss) from continuing operations before taxes |
(20,720 | ) | 3,358 | 304 | (921 | ) | 248 | (17,731 | ) | |||||||||||||||
| Income tax expense (benefit) |
253 | 253 | ||||||||||||||||||||||
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| Net income (loss) |
(20,973 | ) | 3,358 | 304 | (921 | ) | 248 | (17,984 | ) | |||||||||||||||
| Net (income) loss attributable to noncontrolling interest |
1,944 | (419 | ) | 414 | 1,939 | |||||||||||||||||||
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| Net income (loss) and comprehensive income (loss) attributable to RLHC |
(19,029 | ) | 2,939 | 304 | (507 | ) | 248 | (16,045 | ) | |||||||||||||||
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| Earnings (loss) per share - basic |
$ | (0.76 | ) | $ | (0.64 | ) | ||||||||||||||||||
| Earnings (loss) per share - diluted |
$ | (0.76 | ) | $ | (0.64 | ) | ||||||||||||||||||
| Weighted average shares - basic |
24,931 | 24,931 | ||||||||||||||||||||||
| Weighted average shares - diluted |
24,931 | 24,931 | ||||||||||||||||||||||
| k - | Reflects the removal of balances related to our Atlanta and Salt Lake City hotels sold in 2019 and Washington DC hotel sold in February 2020 | |
| l - | Reflects the franchise income and related expenses that would have been received under the existing intercompany franchise agreement. Does not represent the impact of the franchise agreements with the new owners of the assets. |