Red Lion Hotels Corporation reported unaudited consolidated earnings results for the second quarter and six months ended June 30, 2018. For the quarter, the company reported total revenues of $38,612,000 as compared to $45,829,000 for the same period last year. Operating loss was $331,000 as compared to operating income of $2,294,000 for the same period last year. Loss from continuing operations before taxes was $2,011,000 as compared to income of $306,000 for the same period last year. Net loss from continuing operations was $1,663,000 or $0.10 per basic and diluted share as compared to net income of $113,000 for the same period last year. Net loss and comprehensive loss attributable to the company was $2,322,000 or $0.10 per basic and diluted share as compared to $66,000 for the same period last year. The increased loss was tied to the lost income from seven hotels that have been sold in the first half of 2018. EBITDA from continuing operations was $4,392,000 as compared to $6,915,000 for the same period last year. Adjusted EBITDA from continuing operations was $5,550,000 as compared to $7,104,000 for the same period last year. Adjusted EBITDA attributable to RLH Corporation was $4,141,000 compared to $4,772,000 a year ago.

For the six months, the company reported total revenues of $71,651,000 as compared to $82,410,000 for the same period last year. Operating income was $9,231,000 as compared to operating loss of $1,141,000 for the same period last year. Income from continuing operations before taxes was $5,462,000 as compared to loss of $4,912,000 for the same period last year. Net income from continuing operations was $5,675,000 or $0.01 per basic and diluted share as compared to net loss of $5,182,000 or $0.16 per basic and diluted share for the same period last year. Net income and comprehensive income attributable to the company was $266,000 or $0.01 per basic and diluted share as compared to net loss of $3,670,000 or $0.16 per basic and diluted share for the same period last year. EBITDA from continuing operations was $18,504,000 as compared to $8,165,000 for the same period last year. Adjusted EBITDA from continuing operations was $5,971,000 as compared to $8,276,000 for the same period last year. Net cash used in operating activities was $4,746,000 as compared to net cash from operating activities of $1,907,000 for the same period last year. Capital expenditures were $3,684,000 as compared to $5,417,000 for the same period last year. Adjusted EBITDA attributable to RLH Corporation was $4,109,000 compared to $5,568,000 a year ago.

In 2018, the anticipated sales of hotels will reduce the company Hotel divisional profitability. As the sales are closed, the company will disclose the material terms of each transaction in its 8K filings including the historical Adjusted EBITDA relating to the hotels sold. Due to the inability to predict the timing of the hotel sales, guidance for the 2018 fiscal year will concentrate on the company's Franchise business, which will represent the majority of the ongoing future earnings of the company. The aggregate Adjusted EBITDA contribution for the five hotels currently being marketed for sale was $8.7 million for 2017 and $4.2 million for the year to date for 2018. The 2018 Adjusted EBITDA for each of these five hotels will be included in reported results through the dates of each of the respective hotel sales. The 2018 Adjusted EBITDA for the nine hotels sold to date in 2018 was $3.1 million through the earlier of their respective sales dates or June 30, 2018. The Adjusted EBITDA for these nine hotels was $14.5 million for fiscal 2017.