- Annual Revenue of $484.5 Million and Operating Income of $21.7
Million - - Free Cash Flow** of $64.8 Million, Up from $25.4
Million - - Long-Term Debt Reduced by 20%, or $118.6 Million During
2009 - SIOUX FALLS, S.D., Feb. 18 /PRNewswire-FirstCall/ --
LodgeNet Interactive Corporation (NASDAQ:LNET) today reported
annual 2009 revenue of $484.5 million compared to $533.9 million in
2008, and operating income of $21.7 million compared to an
operating loss of $(5.1) million in 2008. The Company reported a
net loss of $(10.2) million compared to a net loss of $(48.4)
million for 2008. Net loss attributable to common stockholders was
$(13.3) million or $(0.59) per share (basic and diluted) for 2009
compared to $(48.4) million or $(2.16) per share (basic and
diluted) for 2008. LodgeNet also reported $64.8 million in free
cash flow (defined as cash provided by operating activities less
cash used for investing activities, including growth-related
capital) for this year compared to $25.4 million in 2008. (Logo:
http://www.newscom.com/cgi-bin/prnh/20080115/AQTU120LOGO) For the
fourth quarter of 2009, revenue was $113.3 million compared to
$121.4 million in the fourth quarter of 2008, and operating income
was $4.6 million compared to an operating loss of $(11.1) million
in the fourth quarter of 2008. The Company reported a net loss of
$(5.9) million compared to a net loss of $(21.7) million for the
fourth quarter of 2008. Net loss attributable to common
stockholders was $(7.4) million or $(0.33) per share (basic and
diluted) for the fourth quarter of 2009 compared to $(21.7) million
or $(0.97) per share (basic and diluted) for the prior year period.
LodgeNet also reported $18.5 million in free cash flow for the
fourth quarter of this year compared to $15.5 million in the fourth
quarter of 2008. The following financial highlights are in
thousands of dollars, except per-share data and average shares
outstanding: Twelve Months Ended December 31, 2009 2008 ---- ----
Total revenue $484,492 $533,879 Operating income (loss) 21,692
(5,071) Net loss (10,155) (48,418) Net loss attributable to common
stockholders (13,269) (48,418) Net loss per common share (1)
$(0.59) $(2.16) Adjusted Operating Cash Flow (2) $124,328 $137,834
Average shares outstanding (basic and diluted) 22,439,325
22,372,475 Three Months Ended December 31, 2009 2008 ---- ----
Total revenue $113,296 $121,425 Operating income (loss) 4,611
(11,140) Net loss (5,918) (21,668) Net loss attributable to common
stockholders (7,355) (21,668) Net loss per common share (1) $(0.33)
$(0.97) Adjusted Operating Cash Flow (2) $28,016 $31,942 Average
shares outstanding (basic and diluted) 22,461,455 22,298,046 (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, impairment, restructuring,
integration and reorganization expenses and the effects of
insurance recoveries. "Despite the harsh economic environment, in
2009 we delivered remarkable improvements to our bottom line,
generating a 155% increase in free cash flow and a 20% reduction in
our long-term debt in the process," said Scott C. Petersen,
LodgeNet Chairman and CEO. "Our management team continues to
proactively manage our business and execute on our strategic plan,
including our diversified revenue growth and cost control
initiatives. We remain focused on improving profitability and
strengthening our balance sheet." Full Year 2009 Strategic
Highlights Include: -- Diversified Revenue Initiatives: revenue up
12% to $189 million - equaled 39% of total revenue for the year -
related gross profit up 50%. -- Operating Expenses: reduced 21% or
$22.8 million. -- Operating and General and Administrative
reductions offset 66% of reduction in gross profit. -- Income from
Operations: improved five-fold to $21.7 million. -- Adjusted
Operating Cash Flow*: $124.3 million, down 10% from 2008. -- Free
Cash Flow**: increased 155% to $64.8 million. Fourth Quarter 2009
Strategic Highlights Include: -- Total Revenue: $113.3 million,
compared to $121.4 million in 2008, in line with guidance. --
Diversified Revenue Initiatives: revenue up to $45.3 million -
equaled 40% of total revenue for the quarter. -- Income from
Operations: swings to positive $4.6 million, compared to a loss of
$(11.1) million in 2008. -- Adjusted Operating Cash Flow*: $28.0
million, down from $31.9 million in 2008, in line with guidance. --
Free Cash Flow**: increased to $18.5 million, compared to $15.5
million in 2008, exceeding guidance. "The management of our balance
sheet remains a key priority and in 2009 we decreased our long-term
debt by $119 million," said Gary H. Ritondaro, LodgeNet's Chief
Financial Officer. "We significantly strengthened our capital
structure in the past twelve months and while the fourth quarter is
historically our softest quarter due to the holiday season, we
reduced debt and our leverage ratio during the quarter, and ended
the year with $17 million in cash. As a result of our debt
reduction initiatives we remain within our debt and interest
coverage leverage ratios and believe we are well positioned to
continue maintaining compliance with our credit facility. Our
operating and cost reduction efforts are ongoing and we are
committed to prudently manage our balance sheet, with free cash
flow being utilized for further debt reduction." "We are
strengthening our business model as we diversify our revenue
streams, improve operating efficiencies, and continue the roll-out
of our HD platform," said Petersen. "The revenue we generated per
installed HD room was up over 5% in fourth quarter, while the
amount of capital we invested per HD room installed was down
approximately 20%, making for a powerful combination. All of this
will allow us to capitalize on improvements in the markets we serve
as the economy recovers." RESULTS FROM OPERATIONS TWELVE MONTHS
ENDED DECEMBER 31, 2009 VERSUS TWELVE MONTHS ENDED DECEMBER 31,
2008 Total revenue for 2009 was $484.5 million, a decrease of $49.4
million or 9.3%, compared to 2008. The decrease in revenue was
primarily from Guest Entertainment, which was offset, in part, by
an increase in revenue within Hotel Services, System Sales and
Related Services, and Healthcare. Hospitality revenue, which
includes Guest Entertainment, Hotel Services, and System Sales and
Related Services, decreased $50.2 million or 9.7%, to $469.7
million for 2009 as compared to $519.9 million for 2008. Due to the
softness in the travel economy, hotel occupancy declined by 8.8%
during 2009 compared to last year. Average monthly Hospitality
revenue per room was $21.42 for 2009, a decrease of 8.2% as
compared to $23.33 per room in 2008. Guest Entertainment revenue,
which includes on-demand entertainment such as movies, games, music
and other interactive services delivered through the television,
declined $69.2 million or 18.9%, to $295.8 million in 2009 versus
2008. Impacted by the decline in occupancy and a conservative
consumer buying pattern, average monthly Guest Entertainment
revenue per room decreased 17.6% to $13.49 for 2009 compared to
$16.38 for 2008. Average monthly movie revenue per room was $12.66
for 2009, a 16.7% reduction as compared to $15.20 per room in the
prior year. Hotel Services revenue, which includes revenue paid by
hotels for television programming and broadband Internet service
and support, increased $10.0 million or 8.3%, to $131.2 million in
2009 versus $121.2 million for 2008. On a per-room basis, monthly
Hotel Services revenue for 2009 increased 9.9% to $5.98 compared to
$5.44 for 2008. Monthly television programming revenue per room
increased 11.5% to $5.45 for 2009 as compared to $4.89 for 2008.
This increase resulted primarily from the continued installation of
high definition television systems and related TV programming
services. Recurring broadband Internet revenue per room was $0.51
for 2009 compared to $0.53 for 2008. System Sales and Related
Services revenue, including sales of TV programming reception
equipment, broadband Internet equipment, and other HDTV equipment
and installation services to hotels, increased $8.9 million or
26.4%, to $42.7 million during 2009 compared to $33.8 million in
2008. During the year, we completed a large HDTV equipment
conversion contract, which contributed $4.3 million of the
increase. The remainder of the growth was derived from sales of
equipment and professional services to hotels, offset by a decline
in broadband equipment sales. Other Revenue, including the sale of
interactive systems and services to Healthcare facilities and
revenue from Advertising and Media Services, increased $0.8 million
or 5.7%, to $14.7 million during 2009 compared to $13.9 million in
2008. Healthcare revenue increased by $1.8 million while
Advertising and Media revenue decreased by $1.0 million, due to the
softness in the economy and the general advertising market. Total
direct costs (exclusive of operating expenses and depreciation and
amortization discussed separately below) decreased 5.1% or $14.8
million, to $274.9 million in 2009 as compared to $289.7 million in
2008. The decrease was primarily due to decreased commissions and
royalties of $21.4 million, which vary with revenue, and a
reduction in recurring connectivity and other Internet support
costs of $5.1 million, as a result of our cost reduction
initiatives. Partially offsetting the reductions were increases to
TV programming costs of $6.3 million, which varies with the number
of rooms served and type of services provided, and system and
equipment cost of sales of $5.4 million. Total direct costs as a
percentage of revenue were 56.7% this year as compared to 54.3%
reported for 2008. The percentage increase resulted from a change
in mix of products and services sold year over year, primarily from
revenue generated by TV programming and system sales, which
generally have a lower margin than Guest Entertainment revenues.
System Operations expenses decreased $15.3 million or 26.4%, to
$42.6 million in 2009 as compared to $57.9 million in 2008. The
decrease resulted from the synergies derived from the consolidation
of the acquired On Command operations, our labor expense reduction
initiatives implemented during 2008 and 2009, lower system repair
costs, lower property taxes, and fuel costs. As a percentage of
revenue, System Operations expenses were 8.8% this year as compared
to 10.8% in 2008. Per average installed room, System Operations
expenses decreased 25.4% to $1.94 per room per month compared to
$2.60 in the prior year. Selling, General and Administrative
(SG&A) expenses decreased $7.5 million or 14.4%, to $44.5
million in the current year as compared to $52.0 million in 2008.
This decrease was also derived from synergies related to the
consolidation of duplicative SG&A functions from our
acquisitions and our expense reduction initiatives implemented
during 2008 and 2009. As a percentage of revenue, SG&A expenses
were 9.2% in the current year as compared to 9.7% in 2008. SG&A
expenses per average installed room decreased 13.2% to $2.03 as
compared to $2.34 in 2008. Depreciation and amortization expenses
decreased $23.8 million or 19.1% to $100.3 million in 2009 as
compared to $124.1 million in 2008. The decline was due to certain
assets becoming fully depreciated and the reduction in capital
investments over the last two years. The current year's
depreciation and amortization expenses included $9.2 million of
expense related to the amortization of acquired intangibles versus
$11.5 million in 2008. As a percentage of revenue, total
depreciation and amortization expenses were 20.7% in 2009 versus
23.3% in 2008. During 2009, we incurred restructuring costs of $0.6
million mainly related to our 2008-2009 reorganization initiatives
compared to $5.0 million incurred in 2008. These expenses were
primarily related to employee severance and the consolidation of
our corporate facilities. As a result of factors previously
described, operating income increased $26.8 million, to $21.7
million in 2009 as compared to an operating loss of $(5.1) million
in 2008. Adjusted Operating Cash Flow, a non-GAAP measure which we
define as operating income exclusive of depreciation, amortization,
share-based compensation, impairment, restructuring, integration
and reorganization expenses and the effects of insurance
recoveries, was $124.3 million for 2009 as compared to $137.8
million in 2008. In 2009, we acquired $31.5 million of outstanding
debt, as part of our debt reduction plan, at 70.5% of par value and
recorded a gain on extinguishment of the debt of $9.3 million. The
acquisition was made through a wholly-owned subsidiary as a
permitted investment under our Credit Facility. In 2008, we
acquired $2.9 million at 50.0% of par value and recorded a gain on
the extinguishment of that debt of $1.4 million. Interest expense
was $38.1 million for 2009 versus $42.6 million in 2008. The
decrease resulted primarily from the change in weighted average
long-term debt, which decreased to $532.9 million during 2009 from
$616.8 million in 2008. The weighted average interest rate during
2009 was 7.15% versus 6.90% for 2008. Net loss for the year was
$(10.2) million compared to a net loss of $(48.4) million for 2008.
Net loss attributable to common stockholders was $(13.3) million
for 2009, compared to a net loss of $(48.4) million in the prior
year. Net loss per share attributable to common stockholders was
$(0.59) for 2009 (basic and diluted) compared to $(2.16) (basic and
diluted) in 2008. For 2009, cash provided by operating activities
was $86.2 million as compared to $89.9 million in 2008. Cash used
for property and equipment additions, including growth related
capital, was $21.3 million. During the year, we made the required
Term B quarterly payments totaling $5.8 million and also made
additional payments totaling $85.3 million. We also used $1.7
million of cash for preferred stock dividends during 2009. For
2008, cash used for property and equipment additions, including
growth-related capital, was $64.4 million. During 2008, we made the
required Term B repayments of $6.3 million and made optional
payments totaling $27.5 million against the Term B. We did not have
preferred stock issued in 2008. The leverage ratio at the end of
2009, calculated on a consolidated debt basis, was 3.82 times
versus the covenant of 4.00 times. The leverage ratio at the end of
2008, calculated on a consolidated debt basis, was 4.30 times. Our
cash balance as of December 31, 2009 was $17.0 million. During the
year, we continued with our proactive plan to moderate capital
investment. For 2009, we installed 16,719 new rooms and converted
23,412 rooms to our HD and digital platforms as compared to 58,901
new rooms and 64,052 converted rooms during 2008. New HD
installations comprised 15,259, or 91.3%, of new systems installed
in the current year, as compared to 45,812, or 77.8%, of new rooms,
in 2008. During the year, we also converted 23,131 rooms, or 98.8%,
to HD as compared to 56,910, or 88.8%, of converted rooms in 2008.
The average investment per newly-installed HD room decreased to
$339 per room during 2009, from $398 per room during 2008. Factors
contributing to the $59 decline included larger average room size
for properties installed, lower component costs, and lower overhead
costs. The average investment per converted HD room also decreased,
by 24.7%, to $241 during 2009, compared to $320 in the 2008, due to
the same general factors noted above. RESULTS FROM OPERATIONS THREE
MONTHS ENDED DECEMBER 31, 2009 VERSUS THREE MONTHS ENDED DECEMBER
31, 2008 Total revenue for the fourth quarter of 2009 was $113.3
million, a decrease of $8.1 million or 6.7%, compared to the same
period of 2008. The decrease in revenue was primarily from Guest
Entertainment services and System Sales and Related Services, which
was offset, in part, by an increase in revenue from Hotel Services.
Hospitality revenue, which includes Guest Entertainment, Hotel
Services and System Sales and Related Services, decreased $8.5
million or 7.1%, to $109.5 million for the fourth quarter of 2009
as compared to $118.0 million for the prior year quarter. Average
monthly Hospitality revenue per room was $20.32 for the fourth
quarter of 2009, a decrease of 3.9% as compared to $21.14 per room
in the fourth quarter of 2008. Guest Entertainment revenue, which
includes on-demand entertainment such as movies, games, music and
other services delivered through the television, declined $8.8
million or 11.4%, to $68.0 million in the fourth quarter of 2009
versus the fourth quarter of 2008. Impacted by the 3.9% decline in
occupancy and continuing conservatism in consumer buying patterns,
average monthly Guest Entertainment revenue per room decreased 8.3%
to $12.61 for the fourth quarter of 2009 compared to $13.75 for the
fourth quarter of 2008. The decline during the fourth quarter was
less than the declines during the first, second and third quarters
of 2009, which had decreases of 23.0%, 20.4% and 16.9%,
respectively. Average monthly movie revenue per room was $11.83 for
the fourth quarter of 2009, a 7.9% reduction as compared to $12.84
per room in the prior year quarter. Hotel Services revenue, which
includes revenue paid by hotels for television programming and
broadband Internet service and support, increased $1.5 million or
5.0%, to $32.5 million in the fourth quarter of 2009 versus $31.0
million for the fourth quarter of 2008. On a per-room basis,
monthly Hotel Services revenue for the fourth quarter of 2009
increased 8.6% to $6.03 compared to $5.55 for the fourth quarter of
2008. Monthly television programming revenue per room increased
9.7% to $5.52 for the fourth quarter of 2009 as compared to $5.03
for the fourth quarter of 2008. This increase resulted primarily
from the continued installation of high definition television
systems and related TV programming services. Recurring broadband
Internet revenue per room was $0.49 for the fourth quarter of 2009
compared to $0.50 for the same period of 2008. System Sales and
Related Services revenue, including sales of broadband Internet
equipment, TV programming reception equipment, Internet conference
services and HDTV installations services to hotels, decreased $1.2
million or 11.8%, to $9.0 million during the fourth quarter of 2009
compared to $10.2 million in the fourth quarter of 2008. The
decrease in revenue was due to lower Broadband Internet equipment
sales partially offset by an increase in TV programming system
sales. Other Revenue, including the sale of interactive systems and
services to Healthcare facilities and revenue from Advertising and
Media Services, increased $0.3 million or 8.7%, to $3.8 million
during 2009 compared to $3.5 million in 2008. Healthcare revenue
increased $0.2 million while Advertising and Media revenue
increased $0.1 million. Total direct costs (exclusive of operating
expenses and depreciation and amortization discussed separately
below) decreased 4.2% or $2.8 million, to $63.8 million in the
fourth quarter of 2009 as compared to $66.6 million in the fourth
quarter of 2008. The decrease in total direct costs was primarily
due to decreased commissions and royalties of $1.6 million, which
vary with revenue, a reduction in recurring connectivity and other
Internet support costs of $0.8 million, as a result of our cost
reduction initiatives. Partially offsetting the reductions was an
increase to incremental TV programming costs of $0.5 million, which
vary with the number of rooms served and the services provided.
Total direct costs as a percentage of revenue were 56.3% this
quarter as compared to 54.8% reported for the fourth quarter of
2008. The percentage increase resulted from a change in the mix of
products or services sold year over year, primarily from the
increased percentage of revenue generated by TV programming service
and related system sales, which generally have a lower margin than
Guest Entertainment revenues. System Operations expenses decreased
$2.3 million or 18.3%, to $10.4 million in the fourth quarter of
2009 as compared to $12.7 million in the fourth quarter of 2008.
The decrease resulted from the synergies derived from the
consolidation of the acquired On Command operations, our expense
reduction initiatives implemented during 2008 and 2009, lower
property tax and other facility expenses, and system repair costs.
As a percentage of revenue, System Operations expenses were 9.2%
this quarter as compared to 10.5% in the fourth quarter of 2008.
Per average installed room, System Operations expenses decreased
15.4% to $1.93 per room per month compared to $2.28 in the prior
year quarter. Selling, General and Administrative (SG&A)
expenses increased $0.7 million or 7.1%, to $11.5 million in the
current quarter as compared to $10.8 million in the fourth quarter
of 2008. In 2008, we had a $1.5 million reduction due to the
elimination of the annual bonus plan. As a percentage of revenue,
SG&A expenses were 10.2% in the current quarter as compared to
8.9% in the fourth quarter of 2008. SG&A expenses per average
installed room increased 10.9% to $2.14 as compared to $1.93 in the
fourth quarter of 2008. Depreciation and amortization expenses
decreased $6.7 million, or 22.8% to $22.7 million in the fourth
quarter of 2009 as compared to $29.4 million in the fourth quarter
of 2008. The decline was due to assets becoming fully depreciated
and the reduction in capital investments over the last two years.
The current quarter's depreciation and amortization expenses
included $2.2 million of expense related to the amortization of
acquired intangibles versus $3.2 million in the fourth quarter of
2008. As a percentage of revenue, total depreciation and
amortization expenses were 20.1% in the fourth quarter of 2009
versus 24.2% in the fourth quarter of 2008. For the fourth quarter
of 2009, we also incurred restructuring costs of $0.3 million,
compared to $1.9 million incurred in 2008. The restructuring
expense was primarily related to employee severance. As a result of
factors previously described, operating income increased $15.7
million, to $4.6 million in the fourth quarter of 2009 as compared
to operating loss of $(11.1) million in the fourth quarter of 2008.
Adjusted Operating Cash Flow, a non-GAAP measure which we define as
operating income exclusive of depreciation, amortization,
share-based compensation, impairment, restructuring, integration
and reorganization expenses and the effects of insurance
recoveries, was $28.0 million for the fourth quarter of 2009 as
compared to $31.9 million in the fourth quarter of 2008. Interest
expense was $8.9 million in the fourth quarter of 2009 versus $10.6
million in the fourth quarter of 2008. The decrease resulted
primarily from the change in weighted average long-term debt, which
decreased to $489.4 million during the fourth quarter of 2009 from
$604.6 million in the fourth quarter of 2008. The weighted average
interest rate during the fourth quarter of 2009 was 7.59% versus
6.98% for the fourth quarter 2008. Net loss for the quarter was
$(5.9) million compared to a net loss of $(21.7) million for the
fourth quarter of 2008. Net loss attributable to common
stockholders was $(7.4) million for the fourth quarter of 2009,
compared to a net loss of $(21.7) million in the prior year
quarter. Net loss per share attributable to common stockholders was
$(0.33) for the fourth quarter of 2009 (basic and diluted) compared
to $(0.97) (basic and diluted) in the fourth quarter of 2008. For
the fourth quarter of 2009, cash provided by operating activities
was $24.4 million as compared to $26.5 million in the fourth
quarter of 2008. Cash used for property and equipment additions,
including growth related capital, was $5.9 million. In December, we
made the required Term B quarterly payment of $1.3 million and also
made an optional payment of $26.0 million. We also used $1.7
million of cash for preferred stock dividends in the fourth quarter
of 2009. For the fourth quarter of 2008, cash used for property and
equipment additions, including growth-related capital, was $11.0
million. During the fourth quarter of 2008, we made the required
Term B repayment of $1.6 million and made an optional payment of
$17.5 million against the Term B. We did not have preferred stock
in the fourth quarter of 2008. The leverage ratio at the end of
this quarter, calculated on a consolidated debt basis, was 3.82
times versus the covenant of 4.00 times. Cash as of December 31,
2009 was $17.0 million. During the fourth quarter of 2009, we
continued with our plan to moderate capital investment. We
installed 2,257 new rooms and converted 7,242 rooms to our HD and
digital platforms in the fourth quarter of 2009 as compared to
15,073 new rooms and 14,782 converted rooms during the fourth
quarter of 2008. New HD installations comprised 2,068, or 100% of
new systems installed in the US during the current quarter as
compared to 12,149, or 97.1% of new rooms in the fourth quarter of
2008. The average investment per newly-installed HD room decreased
to $321 per room during the fourth quarter of 2009, from $375 per
room during the fourth quarter of 2008. Factors contributing to the
$54 decline included larger average room size for properties
installed, lower component costs, and lower overhead costs. The
average investment per converted HD room also decreased, by 28.4%,
to $197 during the fourth quarter of 2009, compared to $275 in the
fourth quarter of 2008, due to the same general factors noted
above. Outlook For the first quarter of 2010, LodgeNet expects to
report revenue in the range of $116.0 million to $120.0 million.
Adjusted Operating Cash Flow* in the first quarter of 2010 is
expected to be in a range from $28.0 million to $31.0 million while
Free Cash Flow**, less the preferred stock dividend, is anticipated
to be in a range of $18.0 million to $19.0 million during the
period. Additional guidance information for the first quarter of
2010 can be found in the Q4 2009 presentation slides, located under
Company Presentations in the Investor Center section of the
LodgeNet corporate website, http://www.lodgenet.com/. * Adjusted
Operating Cash Flow is a non-GAAP measure which we define as
Operating Income exclusive of depreciation, amortization,
share-based compensation, impairment, restructuring, integration
and reorganization expenses and the effects of insurance
recoveries. ** 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. The
Company will also host a teleconference to discuss its results
February 18, 2009, at 5:00 P.M. Eastern Time. A live webcast of the
teleconference will also be available and can be accessed on the
LodgeNet website at http://www.lodgenet.com/. The webcast will be
archived on the LodgeNet website 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 in the United States ("GAAP"), we use adjusted
operating cash flow, and 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, impairment,
restructuring, integration and reorganization expenses and the
effects on insurance recoveries and equipment impairment included
in Other Operating Income. 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, reorganization 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 worldwide in
addition to healthcare facilities throughout the 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 during our
February 18 conference call, 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 first quarter
2010 guidance, including revenue, adjusted operating cash flow and
free cash flow, 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. 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) December 31, December 31,
2009 2008 ---- ---- Assets Current assets: Cash and cash
equivalents $17,011 $10,800 Accounts receivable, net 51,706 63,620
Other current assets 9,189 9,107 ----- ----- Total current assets
77,906 83,527 Property and equipment, net 206,663 273,830 Debt
issuance costs, net 6,005 9,117 Intangible assets, net 106,041
115,134 Goodwill 100,081 100,081 Other assets 11,658 8,097 ------
----- Total assets $508,354 $589,786 ======== ======== Liabilities
and Stockholders' Deficiency Current liabilities: Accounts payable
$40,040 $44,291 Other current liability - 1,446 Current maturities
of long-term debt 6,101 7,597 Accrued expenses 19,137 23,870
Deferred revenue 17,531 17,168 ------ ------ Total current
liabilities 82,809 94,372 Long-term debt 463,845 580,923 Other
long-term liabilities 32,687 43,239 ------ ------ Total liabilities
579,341 718,534 ------- ------- Commitments and contingencies
Stockholders' deficiency: Preferred stock, $.01 par value,
5,000,000 shares authorized; Series B cumulative perpetual
convertible, 10%, 57,500 issued and outstanding at December 31,
2009 (liquidation preference of $1,000 per share or $57,500,000
total); none issued or outstanding at December 31, 2008 1 - Common
stock, $.01 par value, 50,000,000 shares authorized; 22,537,664 and
22,664,164 shares outstanding at December 31, 2009 and December 31,
2008, respectively 226 227 Treasury stock, at cost: 0 and 180,000
shares at December 31, 2009 and December 31, 2008, respectively -
(2,825) Additional paid-in capital 379,222 329,740 Accumulated
deficit (426,211) (416,056) Accumulated other comprehensive loss
(24,225) (39,834) ------- ------- Total stockholders' deficiency
(70,987) (128,748) ------- -------- Total liabilities and
stockholders' deficiency $508,354 $589,786 ======== ======== 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) Years Ended
December 31, ------------------------ 2009 2008 2007 ---- ---- ----
Revenues: Hospitality $469,743 $519,922 $474,473 Other 14,749
13,957 11,115 ------ ------ ------ Total revenues 484,492 533,879
485,588 ------- ------- ------- Direct costs and operating
expenses: Direct costs (exclusive of operating expenses and
depreciation and amortization shown separately below): Hospitality
264,081 278,776 245,609 Other 10,790 10,924 7,554 Operating
expenses: System operations 42,605 57,853 54,114 Selling, general
and administrative 44,538 52,042 55,878 Depreciation and
amortization 100,309 124,060 116,378 Impairment charge - 11,212 -
Restructuring charge 603 5,047 11,158 Other operating income (126)
(964) (867) ---- ---- ---- Total direct costs and operating
expenses 462,800 538,950 489,824 ------- ------- ------- Income
(loss) from operations 21,692 (5,071) (4,236) Other income and
(expenses): Interest expense (38,092) (42,551) (40,950) Gain on
extinguishment of debt 9,292 1,446 - Loss on early retirement of
debt (1,537) (448) (22,195) Other (expense) income (747) (945)
1,526 ---- ---- ----- Loss before income taxes (9,392) (47,569)
(65,855) (Provision) benefit for income taxes (763) (849) 683 ----
---- --- Net loss (10,155) (48,418) (65,172) Preferred stock
dividends (3,114) - - ------ -- -- Net loss attributable to common
stockholders $(13,269) $(48,418) $(65,172) ======== ========
======== Net loss per common share (basic and diluted) $(0.59)
$(2.16) $(3.00) ====== ====== ====== Weighted average shares
outstanding (basic and diluted) 22,439,325 22,372,475 21,758,066
========== ========== ========== 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) Years Ended
December 31, ------------------------ 2009 2008 2007 ---- ---- ----
Operating activities: Net loss $(10,155) $(48,418) $(65,172)
Adjustments to reconcile net loss to net cash provided by operating
activities: Depreciation and amortization 100,309 124,060 116,378
Gain on extinguishment of debt (non-cash) (9,292) (1,446) -
Impairment charge - 11,212 - Loss on early retirement of debt 1,537
448 3,583 Share-based compensation 1,724 2,275 1,737 Gain due to
insurance proceeds - (815) - Insurance proceeds related to business
interruption - 815 - Other, net 588 576 188 Change in operating
assets and liabilities: Accounts receivable, net 12,385 9,030
(7,861) Other current assets 1,173 2,030 (2,496) Accounts payable
(5,713) (5,454) 6,052 Accrued expenses and deferred revenue (4,981)
(5,720) 8,332 Other (1,403) 1,260 (1,872) ------ ----- ------ Net
cash provided by operating activities 86,172 89,853 58,869 ------
------ ------ Investing activities: Property and equipment
additions (21,341) (64,407) (79,097) Acquisition of StayOnline,
Inc. - - (14,311) Acquisition of THN (20% minority interest) - -
(5,000) Acquisition of On Command Corporation, net of cash acquired
- - (335,517) Other investing activities - - 651 -- -- --- Net cash
used for investing activities (21,341) (64,407) (433,274) -------
------- -------- Financing activities: Proceeds from long-term debt
- - 625,000 Repayment of long-term debt (91,109) (33,760) (271,241)
Payment of capital lease obligations (1,437) (1,365) (1,712)
Borrowings on revolving credit facility - 30,000 - Repayments of
revolving credit facility - (30,000) - Debt issuance costs - -
(12,738) Purchase of long-term debt (23,685) - - Proceeds from
investment in long- term debt 5,410 - - Contribution from minority
interest holder to subsidiary - - 300 Purchase of treasury stock -
(4,662) (1,075) Proceeds from issuance of common stock, net of
offering costs - - 23,290 Proceeds from issuance of preferred
stock, net of offering costs 53,696 - - Payment of dividends to
preferred shareholders (1,677) - - Exercise of stock options 2 -
17,120 Change in other long-term liability - - (2,225) -- -- ------
Net cash (used for) provided by financing activities (58,800)
(39,787) 376,719 ------- ------- ------- Effect of exchange rates
on cash 180 (428) 460 --- ---- --- Increase (decrease) in cash
6,211 (14,769) 2,774 Cash at beginning of period 10,800 25,569
22,795 ------ ------ ------ Cash at end of period $17,011 $10,800
$25,569 ======= ======= ======= 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 December 31, ------------------- 2009 2008
---- ---- Revenues: Hospitality $109,530 $117,959 Other 3,766 3,466
----- ----- Total revenues 113,296 121,425 ------- ------- Direct
costs and operating expenses: Direct costs (exclusive of operating
expenses and depreciation and amortization shown separately below):
Hospitality 61,188 63,756 Other 2,590 2,801 Operating expenses:
System operations 10,410 12,739 Selling, general and administrative
11,524 10,757 Depreciation and amortization 22,719 29,412
Impairment charge - 11,212 Restructuring charge 292 1,905 Other
operating income (38) (17) --- --- Total direct costs and operating
expenses 108,685 132,565 ------- ------- Income (loss) from
operations 4,611 (11,140) Other income and (expenses): Interest
expense (8,878) (10,552) Gain on extinguishment of debt - 1,446
Loss on early retirement of debt (314) (293) Other expense (1,232)
(922) ------ ---- Loss before income taxes (5,813) (21,461)
Provision for income taxes (105) (207) ---- ---- Net loss (5,918)
(21,668) Preferred stock dividends (1,437) - ------ -- Net loss
attributable to common stockholders $(7,355) $(21,668) =======
======== Net loss per common share (basic and diluted) $(0.33)
$(0.97) ====== ====== Weighted average shares outstanding (basic
and diluted) 22,461,455 22,298,046 ========== ========== The
accompanying notes are an integral part of these consolidated
financial statements. LodgeNet Interactive Corporation and
Subsidiaries Supplemental Data -------- ------- ------- -------
------- 4th Qtr 3rd Qtr 2nd Qtr 1st Qtr 4th Qtr '09 '09 '09 '09 '08
-------- ------- ------- ------- ------- Room Base Statistics
----------- Total Rooms Served (1) 1,909,323 1,934,229 1,956,562
1,973,472 1,977,015 Total Guest Entertainment Rooms (2) 1,779,979
1,807,933 1,827,636 1,849,304 1,866,353 Total HD Rooms (3) 231,588
221,633 210,262 199,290 191,491 Percent of Total Guest
Entertainment Rooms 13.0% 12.3% 11.5% 10.8% 10.3% Total Television
Programming (FTG) Rooms (4) 1,087,860 1,095,719 1,104,660 1,106,833
1,105,754 Percent of Total Guest Entertainment Rooms 61.1% 60.6%
60.4% 59.9% 59.2% Total Broadband Internet Rooms (5) 201,936
206,914 219,260 229,184 229,003 Percent of Total Rooms Served 10.6%
10.7% 11.2% 11.6% 11.6% Revenue Per Room Statistics (per month)
------------ Hospitality Guest Entertainment $12.61 $14.01 $13.60
$13.73 $13.75 Hotel Services 6.03 5.98 6.02 5.90 5.55 System Sales
and Related Services 1.68 1.71 1.76 2.63 1.84 ---- ---- ---- ----
---- Total Hospitality 20.32 21.70 21.38 22.26 21.14 Other
(Healthcare and Advertising Media) 0.70 0.52 0.74 0.73 0.62 ----
---- ---- ---- ---- Total Revenue Per Room $21.02 $22.22 $22.12
$22.99 $21.76 Based on average Guest Entertainment rooms Summary
Operating Results ---------- (Dollar amounts in thousands)
Hospitality Revenue: Guest Entertainment $67,979 $76,369 $74,980
$76,488 $76,739 Hotel Services 32,515 32,617 33,200 32,889 30,970
System Sales and Related Services 9,036 9,312 9,693 14,664 10,250
----- ----- ----- ------ ------ Total Hospitality 109,530 118,298
117,873 124,041 117,959 Other Revenue (Healthcare and Advertising
Media) 3,766 2,824 4,108 4,051 3,466 ----- ----- ----- ----- -----
Total Revenue $113,296 $121,122 $121,981 $128,092 $121,425 Adjusted
Operating Cash Flow (6) $28,016 $30,039 $31,669 $34,604 $31,942
Reconciliation of Adjusted Operating Cash Flow to Operating Income
(Loss) --------------- (Dollar amounts in thousands) Adjusted
Operating Cash Flow $28,016 $30,039 $31,669 $34,604 $31,942
Depreciation and Amortization (20,483) (21,992) (24,022) (24,638)
(26,247) Amortization of Acquired Intangibles (2,236) (2,236)
(2,236) (2,467) (3,165) Share Based Compensation (394) (389) (670)
(271) (540) Impairment Charge - - - - (11,212) Restructuring Charge
(292) (128) (75) (107) (1,905) Integration Expense - - - - (13) --
-- -- -- -- Operating Income (Loss) $4,611 $5,294 $4,666 $7,121
$(11,140) ====== ====== ====== ====== ======== (1) Total rooms
served represents rooms receiving one or more of our services
including rooms served by international licensees. (2) Guest
Entertainment rooms, of which 86% are digital, 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, impairment,
restructuring, integration and reorganization expenses and the
effects of insurance recoveries.
http://www.newscom.com/cgi-bin/prnh/20080115/AQTU120LOGO
http://photoarchive.ap.org/ DATASOURCE: LodgeNet Interactive
Corporation CONTACT: Ann Parker, Director, Investor Relations of
LodgeNet Interactive Corporation, +1-605-988-1000, ; or Mike
Smargiassi of Brainerd Communicators, +1-212-986-6667, Web Site:
http://www.lodgenet.com/
Copyright
Lodgenet Interactive Corp. (MM) (NASDAQ:LNET)
過去 株価チャート
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Lodgenet Interactive Corp. (MM) (NASDAQ:LNET)
過去 株価チャート
から 7 2023 まで 7 2024