Red Lion Hotels Corporation reported unaudited consolidated earnings results for the first quarter ended March 31, 2018. For the quarter, the company reported total revenues of USD 33,039,000 compared to USD 36,581,000 a year ago. Operating income was USD 9,562,000 compared to loss of USD 3,435,000 a year ago. Income from continuing operations before taxes were USD 7,473,000 compared to loss of USD 5,218,000 a year ago. Net income from continuing operations was USD 7,338,000 or USD 0.10 per diluted share compared to loss USD 5,295,000 or USD 0.15 per basic and diluted share a year ago. Net income and comprehensive income attributable to RLH Corporation was USD 2,588,000 compared to loss USD 3,604,000 a year ago. Net cash used in operating activities USD 6,768,000 against USD 3,973,000 for the same period a year ago. Capital expenditures were USD 1,692,000 against USD 3,043,000 for the same period a year ago. EBITDA was USD 14,112,000 against USD 1,250,000 for the same period a year ago. Adjusted EBITDA was USD 421,000 against adjusted EBITDA of USD 1,172,000 for the same period a year ago. Adjusted net loss was USD 6,353,000 or USD 0.26 per share against USD 5,373,000 or USD 0.23 per share for the same period a year ago.

In 2018, the anticipated sales of hotels will reduce the Company Hotel divisional profitability. Hotel Division: The aggregate Adjusted EBITDA contribution for the five hotels currently being marketed for sale was USD 11.4 million for 2017 and USD 1.1 million for the first quarter of 2018.  The 2018 Adjusted EBITDA for each of these five hotels will accrue through the dates of each of the respective hotel sales. The 2018 Adjusted EBITDA for the six hotels sold to date in 2018 was USD 0.2 million through the dates of their respective sales.  The Adjusted EBITDA for these six hotels was USD 5.4 million for fiscal 2017. Adjusted EBITDA for the leasehold interests and the three hotels not currently being marketed for sale are expected to generate USD 7 million of Adjusted EBITDA in 2018. Franchise divisional profit expected to be between USD 18 million and USD 19 million. The Franchise divisional profit margin is expected to increase from 28.3% in 2017 to between 32% and 34%.