Published:
LodgeNet Reports Results for Third Quarter 2008
SIOUX FALLS, S.D., Oct. 28 /PRNewswire-FirstCall/ -- LodgeNet Interactive
Corporation (Nasdaq: LNET) today reported quarterly revenue of $135.3 million
compared to $142.6 million in the third quarter of 2007. The Company also
reported operating income of $4.6 million, an increase of $6.1 million over
the same quarter of last year. The Company's net loss improved by
$5.1 million to $(6.3) million or $(0.28) per share (basic and diluted) for
the third quarter of 2008 compared to a net loss of $(11.4) million or $(0.50)
per share (basic and diluted) in the third quarter of 2007.
The following financial highlights are in thousands of dollars, except
per-share data and average shares outstanding:
Three Months Ended September 30,
2008 2007
Total revenue $135,320 $142,631
Operating income (loss) 4,625 (1,426)
Net loss (6,278) (11,410)
Net loss per common share (1) $(0.28) $(0.50)
Adjusted Operating Cash Flow (2) $34,611 $37,872
Average shares outstanding
(basic and diluted) 22,296,886 22,742,001
(1) Based on the average shares outstanding for both basic and diluted.
(2) 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 expenses and
the effects of insurance recoveries.
"While the third quarter was challenging for our traditional Guest
Entertainment services, we continued to make substantial progress in regards
to growth of our new revenue initiatives, reduction of operating expenses and
management of our capital investment activities," said Scott C. Petersen,
LodgeNet Chairman and CEO. "We proactively managed our business such that we
generated more free cash flow (cash from operations less cash used for
investing activities) this year during the third quarter as compared to the
year ago period."
"Guest Entertainment revenue in the quarter was down 11.2%, however the
gross profit margin was up slightly period over period," said Gary H.
Ritondaro, LodgeNet's Chief Financial Officer. "Hotel Services delivered
another quarter of double digit growth with revenue up 15.4% and gross profit
increasing 103%, as we continue to deploy our high-definition, basic TV
Programming systems. Sales of systems to hotels and hospitals also increased
8.8% and gross profit increased 20.3%. Overall, revenue from Hotel Services
and System Sales sources increased 12.5% in the quarter and, as a result,
total revenue was off only 5.1% compared to the Third Quarter of 2007."
"Our management team is also focused on driving our operating performance
through ongoing cost reduction initiatives," Mr. Ritondaro continued. "We
were pleased with our reductions in system operations and SG&A expenses which
resulted in savings of $4.3 million, or a reduction of 13.5%, compared to the
third quarter of last year, which offset 79% of the shortfall in gross profit.
"Given the challenging economic environment and by balancing the interests
of our Company and our customers, we proactively reduced our growth-related
capital and other investing activities by 45% from $26.8 million in the third
quarter of 2007 to $14.7 million in the current quarter. We continue to drive
capital investment savings as costs for new and converted room installations
decreased by approximately 9% period over period. As a result of our
proactive cost and capital savings actions, we continued to pay down debt at
an accelerated basis, reducing long-term debt by $6.1 million in the quarter.
Our consolidated debt leverage at the end of the quarter was 4.38 times total
outstanding debt, and 4.26 on a net debt basis."
"Given the current economic environment, we are determined to reduce our
operating expenses and capital investment levels with the goal of managing our
business in compliance with our loan agreements," said Petersen. "Capital
investment levels for the fourth quarter will be in the $13 to $14 million
range, and will most likely drop below $10 million for the first quarter of
next year. We are also carefully reviewing our operating structures and
expect to implement significant cost saving measures during the first part of
next year. We expect that Adjusted Free Cash Flow for 2008 will be within the
range of $26.5 to $29.5 million, or $1.19 to $1.32 per share."
RESULTS FROM OPERATIONS
THREE MONTHS ENDED SEPTEMBER 30, 2008 VERSUS
THREE MONTHS ENDED SEPTEMBER 30, 2007
Total revenue for the third quarter of 2008 was $135.3 million, a decrease
of $7.3 million or 5.1%, compared to the third quarter of 2007. The decrease
in revenue was primarily driven by a decrease in revenue from Guest
Entertainment services, offset by revenue increases from hotel services, and
system sales to hotels and hospitals. The average monthly total revenue per
room was $24.30 for the third quarter of 2008 compared to $25.73 for the third
quarter of 2007, a decrease of 5.6%.
Guest Entertainment revenue, which includes on-demand entertainment such
as movies, games, music, time-shifted television, Internet access through the
television and sports programming, decreased $11.9 million or 11.2% to $93.8
million, impacted by a 3.5% decline in occupancy and an extremely cautious
consumer environment. On a per-room basis, monthly Guest Entertainment
revenue for the third quarter of 2008 declined 11.6% to $16.85 compared to
$19.06 for the third quarter of 2007. Average monthly movie revenue per room
was $15.65 for the third quarter of 2008, a 10.3% reduction as compared to
$17.44 per room in the prior year quarter. Non-movie Guest Entertainment
revenue per room decreased 25.9% to $1.20 in the third quarter of 2008, driven
by reductions from games, music, TV Internet purchases, and time-shifted
television purchases.
Hotel Services revenue, which includes revenue from hotels for television
programming and broadband Internet service and support, increased $4.1 million
or 15.4% to $30.7 million during the third quarter of 2008 versus
$26.6 million in the third quarter of 2007. This increase offsets more than a
third of the decline in Guest Entertainment revenue. On a per-room basis,
monthly Hotel Services revenue for the third quarter of 2008 increased 15.0%
to $5.52 compared to $4.80 for the third quarter of 2007. Monthly television
programming revenue per room increased 16.3% to $4.99 for the third quarter of
2008 as compared to $4.29 for the third quarter of 2007. This increase
resulted primarily from the continued installation of high definition
television systems and related TV programming services. Recurring broadband
revenue per room increased 3.9% to $0.53 for the third quarter of 2008 as
compared to $0.51 for the third quarter of 2007.
System Sales, Advertising, and Other Revenue including sales of broadband
equipment, healthcare and other interactive systems as well as
advertising/media services, increased $464,000, or 4.5%, to $10.8 million
during third quarter of 2008 versus $10.3 million in the third quarter of
2007. System Sales increased by $738,000, offset by a decrease of $274,000 in
advertising/media revenue. On a per-room basis, monthly System Sales,
Advertising and Other revenue increased 3.2% to $1.93 for the third quarter of
2008 compared to $1.87 for the third quarter of 2007.
Total direct costs (exclusive of operating expenses and depreciation and
amortization discussed separately below) decreased $1.9 million to
$74.0 million in the third quarter of 2008 as compared to $75.9 million in the
third quarter of 2007. The decrease in total direct costs was primarily due
to decreased costs for movies, which varies with revenue, offset, in part, by
an increase in TV programming costs, which varies with the number of rooms
served. Total direct costs as a percentage of revenue were 54.7% this quarter
as compared to 53.2% reported for the third quarter of 2007.
System operations expenses decreased $617,000 to $14.9 million in the
third quarter of 2008 as compared to $15.5 million in the third quarter of
2007. As a percentage of revenue, system operations expenses were 11.0% this
quarter as compared to 10.9% in the third quarter of 2007. Per average
installed room, system operations expenses decreased 4.6% to $2.67 per room
per month compared to $2.80 in the prior year quarter.
Selling, general and administrative (SG&A) expenses decreased $3.7 million
or 22.6%, from $16.1 million in the third quarter of 2007 to $12.5 million in
the current quarter. This decrease is a result of achieving the expected
synergies related to duplicative general and administrative functions from the
consolidation of our recent acquisitions. Included within this quarter's SG&A
expenses were $75,000 of integration costs, compared to integration costs of
$1.8 million included in the prior year quarter. As a percentage of revenue,
SG&A expenses were 9.2% in the current quarter compared to 11.3% in the third
quarter of 2007. SG&A expenses per average installed room decreased 23.0% to
$2.24 as compared to $2.91 in the third quarter of 2007.
Depreciation and amortization expenses were $29.0 million in the third
quarter of 2008 as compared to $34.1 million in the third quarter of 2007.
The decline was due to certain acquired assets becoming fully depreciated.
The current period's depreciation and amortization expenses included
$2.6 million of expense related to the amortization of acquired intangibles
from the acquisition of StayOnline and On Command. As a percentage of
revenue, depreciation and amortization expenses were 21.5% in the third
quarter of 2008 as compared to 23.9% in the third quarter of 2007.
Interest expense was $10.5 million in the current quarter versus
$11.7 million in the third quarter of 2007. The decrease resulted from the
change in weighted average long-term debt, which decreased to $615.2 million
during the third quarter of 2008 from $627.4 million in the third quarter of
2007. The weighted average interest rate decreased to 6.9% for the third
quarter of 2008 versus 7.5% for the third quarter 2007.
As a result of factors previously described, Adjusted Operating Cash Flow,
a non-GAAP measure which we define as operating income (loss) exclusive of
depreciation, amortization, share-based compensation, restructuring and
integration expenses and the effects of insurance recoveries, was
$34.6 million for this quarter of 2008 as compared to $37.9 million reported
for the third quarter of 2007. Restructuring and integration expenses were
$0.4 million in the third quarter of 2008 as compared to $4.7 million in the
third quarter of 2007.
Net loss was $(6.3) million for the third quarter of 2008, compared to a
net loss of $(11.4) million in the prior year quarter. Net loss per share for
the third quarter of 2008 was $(0.28) compared to net loss per share of
$(0.50) in the third quarter of 2007. For the current quarter, the net loss
included $3.0 million of acquisition related costs for restructuring,
integration, and amortization of acquired intangibles as compared to
$7.8 million during the same period of last year.
For the third quarter of 2008, cash provided by operating activities was
$20.9 million and we utilized $1.1 million of cash for integration and
restructuring related activities. Cash used for property and equipment
additions, including growth related capital, was $14.7 million. During the
quarter, we also expended cash for the required Term B payment of $1.6 million
and made an additional $5.0 million prepayment against the Term B portion of
the credit facility. During the third quarter of 2007, cash provided by
operating activities was $28.3 million and we utilized $4.4 million for the
payment of integration and restructuring related activities. Cash used for
property and equipment additions for the quarter, including growth-related
capital and other investing activities, was $26.8 million.
In the third quarter of 2008, we installed 15,004 new rooms and converted
12,992 rooms as compared to 15,865 new rooms and 23,815 converted rooms during
the third quarter of 2007. New HD installations comprised 13,574 or 90.5% of
new systems installed in the current quarter as compared to 6,395 or 40.3% of
new rooms in the third quarter of 2007. During the quarter, we also converted
12,732 rooms or 98.0% to HD as compared to 8,469 or 35.6% of converted rooms
in of 2007. The average investment per newly-installed HD room decreased 9.3%
to $400 during the third quarter of 2008, compared to $441 in the third
quarter of 2007. The average investment per converted HD room decreased 9.7%
to $299 during the third quarter of 2008, compared to $331 in the third
quarter of 2007.
Outlook
The Company has updated its outlook for 2008 utilizing the forecasting
methodology previously used for 2008, updated to reflect year-to-date results
and the impact of recent operating trends. The Company continues to expect
enhancements to its run-rate Adjusted Operating Cash Flow* during the Fourth
Quarter from additional operating synergies, TV Programming margin expansion
and the sale of systems to hotels and hospitals; but expects those
enhancements will be offset by a decline in Guest-Entertainment revenue. For
the year, the Company expects that movie revenues will be (7.0)% to (8.0)%
below 2007 levels. As a result, the Company expects to report 2008 revenue in
the range of $537.0 million to $541.0 million and Adjusted Operating Cash
Flow* in the range from $134.5 million to $137.5 million. Net loss is
expected to be $(38.0) million to $(35.0) million or loss per share of $(1.71)
to $(1.57). Adjusted Net Loss** is expected to be $(22.5) million to $(19.5)
million or $(1.01) to $(0.88) per share. Net Free Cash Flow*** is expected to
be in a range of $17.5 million to $20.0 million and Adjusted Net Free Cash
Flow**** is expected to be $26.5 million to $29.5 million.
* 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 expenses and the
effects of insurance recoveries.
** Adjusted Net Loss excludes amortization of purchased intangibles, debt
refinancing charges and restructuring and integration expenses.
*** Net 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.
**** Adjusted Net Free Cash Flow, a non-GAAP measure, is defined as net
free cash flow, as defined above, and further excludes cash used for
restructuring and integration activities.
The Company will also host a teleconference to discuss its results
October 28, 2008, at 5:00 P.M. Eastern Time. A live webcast of the
teleconference will also be available via InterCall at
http://www.lodgenet.com. The webcast will be archived at that site 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 inthe United States
("GAAP"), we use adjusted operating cash flow, adjusted net loss, net free
cash flow, and adjusted net 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 expenses and the effects on
insurance recoveries and equipment impairment included in Other Operating
Income. Adjusted net loss is a non-GAAP measure which we define as net loss
exclusive of amortization of purchased intangibles, debt refinancing,
restructuring charges and integration expenses. We define net free cash flow,
a non-GAAP measure, as cash provided by operating activities less cash used
for certain investing activities and excluding consideration paid for
acquisitions. Adjusted net free cash flow, a non-GAAP measure, is defined as
net free cash flow, as defined above, and further excludes the effect of cash
consideration paid for acquisitions, debt tender, and integration and
restructuring activities. 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 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 more
than 1.9 million hotel rooms representing 10,000 hotel properties worldwide in
addition to healthcare facilities throughoutthe United States. The Company's
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 http://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 and in the prepared remarks 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 2008 guidance, including revenue, net loss,
adjusted net loss, adjusted operating cash flow, net free cash flow, adjusted
net free cash flow and capital investment, 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. With respect to any acquisition, we are subject to risks that
integration costs will exceed expectations, that synergies we anticipate will
not be realized, or will take longer than anticipated to realize, that our
management and management systems will encounter difficulties in dealing with
a bigger, more diversified enterprise, and that the financial results we
expect from the acquisition will not be realized. 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 Interactive Corporation and Subsidiaries
Consolidated Balance Sheets (Unaudited)
(Dollar amounts in thousands, except share data)
September 30, December 31,
2008 2007
Assets
Current assets:
Cash and cash equivalents $14,917 $25,569
Accounts receivable, net 71,121 73,580
Other current assets 10,272 11,359
Total current assets 96,310 110,508
Property and equipment, net 292,408 323,963
Debt issuance costs, net 9,859 11,374
Intangible assets, net 118,269 126,530
Goodwill 111,293 111,293
Other assets 9,358 10,155
Total assets $637,497 $693,823
Liabilities and Stockholders'
Deficiency
Current liabilities:
Accounts payable $48,356 $50,559
Current maturities of long-term
debt 7,547 7,398
Accrued expenses 24,081 30,118
Deferred revenue 13,560 14,354
Total current liabilities 93,544 102,429
Long-term debt 602,905 617,196
Other long-term liabilities 21,008 22,440
Total liabilities 717,457 742,065
Commitments and contingencies
Stockholders' deficiency:
Preferred stock, $.01 par value,
5,000,000 shares authorized;
no shares issued or outstanding - -
Common stock, $.01 par value,
50,000,000 shares authorized;
23,014,164 and 22,969,775
shares outstanding at
September 30, 2008 and
December 31, 2007,
respectively 230 230
Treasury stock, at cost: 530,000 and
60,000 shares at September 30,
2008 and December 31, 2007,
respectively (5,737) (1,075)
Additional paid-in capital 332,113 330,405
Accumulated deficit (394,388) (367,638)
Accumulated other comprehensive
loss (12,178) (10,164)
Total stockholders'
deficiency (79,960) (48,242)
Total liabilities and
stockholders' deficiency $637,497 $693,823
The accompanying notes are an integral part of these consolidated
financial statements.
LodgeNet Interactive Corporation and Subsidiaries
Consolidated Statements of Operations (Unaudited)
(Dollar amounts in thousands, except share data)
Three Months Ended Nine Months Ended
September 30, September 30,
2008 2007 2008 2007
Revenues:
Guest entertainment and
hotel services $124,522 $132,297 $378,425 $327,899
System sales,
advertising and other 10,798 10,334 34,030 24,931
Total revenues 135,320 142,631 412,455 352,830
Direct Costs and Operating
Expenses:
Direct costs (exclusive
of operating expenses
and depreciation and
amortization shown
separately below):
Guest entertainment
and hotel services 65,917 68,103 197,063 163,087
System sales,
advertising and other 8,116 7,839 26,080 18,250
Operating expenses:
System operations 14,888 15,505 45,115 39,236
Selling, general and
administrative 12,484 16,137 41,285 40,200
Depreciation and
amortization 29,046 34,135 94,648 83,816
Restructuring 323 2,296 3,142 5,052
Other operating (income)
expense (79) 42 (947) (774)
Total direct costs
and operating
expenses 130,695 144,057 406,386 348,867
Income (loss)
from operations 4,625 (1,426) 6,069 3,963
Other Income and
(Expenses):
Interest expense (10,543) (11,741) (31,999) (29,527)
Loss on early retirement
of debt (76) (25) (155) (22,195)
Minority interest in
income of subsidiary - - - 165
Other (expense) income (10) 724 (23) 1,289
Loss before income taxes (6,004) (12,468) (26,108) (46,305)
Provision for income taxes (274) 1,058 (642) 836
Net loss $(6,278) $(11,410) $(26,750) $(45,469)
Net loss per common share
(basic and diluted) $(0.28) $(0.50) $(1.19) $(2.12)
Weighted average shares
outstanding (basic and
diluted) 22,296,886 22,742,001 22,397,466 21,417,266
The accompanying notes are an integral part of these consolidated
financial statements.
LodgeNet Interactive Corporation and Subsidiaries
Consolidated Statements of Cash Flows (Unaudited)
(Dollar amounts in thousands)
Nine Months Ended September 30,
2008 2007
Operating activities:
Net loss $(26,750) $(45,469)
Adjustments to reconcile net loss
to net cash provided
by operating activities:
Depreciation and amortization 94,648 83,816
Loss on early retirement of debt 155 3,583
Share-based compensation 1,735 1,296
Gain due to insurance proceeds (815) -
Insurance proceeds related to
business interruption 815 -
Other, net (32) (215)
Change in operating assets and
liabilities:
Accounts receivable, net 2,195 (5,890)
Other current assets 946 (2,792)
Accounts payable (1,617) 7,970
Accrued expenses and deferred revenue (8,580) 1,018
Other 691 (904)
Net cash provided by operating
activities 63,391 42,413
Investing activities:
Property and equipment additions (53,428) (60,591)
Acquisition of StayOnline, Inc. - (14,311)
Acquisition of THN (20% minority
interest) - (5,000)
Acquisition of On Command
Corporation, net of cash acquired - (335,364)
Other investing activities - 638
Net cash used for investing
activities (53,428) (414,628)
Financing activities:
Proceeds from long-term debt - 625,000
Repayment of long-term debt (14,698) (269,677)
Payment of capital lease obligations (1,066) (1,419)
Borrowings on revolving credit
facility 30,000 -
Repayments of revolving credit
facility (30,000) -
Debt issuance costs - (12,738)
Contribution from minority interest
holder to subsidiary - 300
Purchase of treasury stock (4,662) -
Proceeds from issuance of common
stock, net of offering costs - 23,290
Exercise of stock options - 16,468
Net cash (used for) provided by
financing activities (20,426) 381,224
Effect of exchange rates on cash (189) 346
(Decrease) increase in cash and cash
equivalents (10,652) 9,355
Cash and cash equivalents at
beginning of period 25,569 22,795
Cash and cash equivalents at end of
period $14,917 $32,150
The accompanying notes are an integral part of these consolidated
financial statements.
LodgeNet Interactive Corporation and Subsidiaries
Supplemental Data
3rd Qtr '08 2nd Qtr '08 1st Qtr '08 4th Qtr '07 3rd Qtr '07
Room Base
Statistics
Total
Rooms
Served (1) 1,970,752 1,969,524 1,968,000 1,962,090 1,954,116
Total Guest
Entertainment
Rooms (2) 1,862,885 1,865,594 1,863,599 1,860,720 1,852,124
Total
HD
Rooms (3) 163,768 137,034 109,980 84,327 63,502
Percent of
Total Guest
Entertainment
Rooms 8.8% 7.3% 5.9% 4.5% 3.4%
Total
Television
Programming
(FTG)
Rooms (4) 1,098,687 1,087,448 1,076,894 1,068,256 1,059,440
Percent of
Total Guest
Entertainment
Rooms 59.0% 58.3% 57.8% 57.4% 57.2%
Total
Broadband
Internet
Rooms (5) 227,880 222,421 221,906 218,860 215,581
Percent of
Total Rooms
Served 11.6% 11.3% 11.3% 11.2% 11.0%
Revenue Per Room
Statistics (per month)
Guest
Entertainment
Revenue $16.85 $17.09 $17.83 $16.88 $19.06
Hotel Services
Revenue 5.52 5.40 5.29 4.87 4.80
System Sales,
Advertising
and Other
Revenue 1.93 2.16 2.00 2.10 1.87
Total Revenue
Per Room $24.30 $24.65 $25.12 $23.85 $25.73
Based on
average
LodgeNet
owned
Guest
Entertainment
rooms.
Summary Operating Results
(Dollar amounts in thousands)
Guest
Entertainment
Revenue $93,808 $95,208 $99,203 $93,966 $105,673
Hotel
Services
Revenue 30,714 30,082 29,410 27,099 26,624
System Sales,
Advertising
and Other
Revenue 10,798 12,057 11,174 11,693 10,334
Total
Revenue $135,320 $137,347 $139,787 $132,758 $142,631
Adjusted
Operating
Cash
Flow (6) $34,611 $36,730 $34,551 $33,838 $37,872
Operating
Income
(Loss) $4,625 $3,292 $(1,847) $(8,199) $(1,426)
Write-off
Debt
Issuance
Costs $(76) $(79) $- $- $(25)
Net Loss $(6,278) $(7,461) $(13,011) $(19,702) $(11,410)
Reconciliation of Adjusted
Operating Cash Flow to
Operating Income (Loss)
(Dollar amounts
in thousands)
Adjusted
Operating
Cash Flow $34,611 $36,730 $34,551 $33,838 $37,872
Depreciation
and
Amortization (26,430) (29,886) (29,948) (29,843) (31,025)
Amortization
of
Acquired
Intangibles (2,616) (2,616) (3,152) (2,719) (3,110)
Share Based
Compensation (542) (685) (508) (442) (443)
Restructuring
Expense (323) (817) (2,002) (6,105) (2,296)
Integration
Expense (75) (249) (788) (2,928) (2,424)
Insurance
Proceeds - 815 - - -
Operating
Income
(Loss) $4,625 $3,292 $(1,847) $(8,199) $(1,426)
(1) Total rooms served represents rooms receiving one or more of our
services including rooms served by international licensees.
(2) Guest Entertainment rooms 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
Operating Income (Loss) exclusive of depreciation, amortization,
share-based compensation, restructuring and integration expenses and
the effects of insurance recoveries.
SOURCE LodgeNet Interactive Corporation
Copyright © 2009, PRNewswire
Copyright © 2009, NewsBlaze,
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