Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2014 | 1-May-14 | |
Entity Information [Line Items] | ' | ' |
Entity Registrant Name | 'Red Lion Hotels CORP | ' |
Entity Central Index Key | '0001052595 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Accelerated Filer | ' |
Document Type | '10-Q | ' |
Document Period End Date | 31-Mar-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Amendment Flag | 'false | ' |
Entity Common Stock, Shares Outstanding | ' | 19,738,732 |
Consolidated_Balance_Sheets_Un
Consolidated Balance Sheets (Unaudited) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $13,515 | $13,058 |
Accounts receivable, net | 6,555 | 6,283 |
Notes receivable | 643 | 672 |
Inventories | 1,238 | 1,386 |
Prepaid expenses and other | 2,461 | 2,873 |
Deferred income taxes | 761 | 1,034 |
Other current assets | 7 | 393 |
Assets held for sale | 18,483 | 18,346 |
Total current assets | 43,663 | 44,045 |
Property and equipment, net | 166,252 | 166,356 |
Goodwill | 8,512 | 8,512 |
Intangible assets | 6,992 | 6,992 |
Notes receivable, long term | 4,445 | 4,423 |
Other assets, net | 4,263 | 4,298 |
Total assets | 234,127 | 234,626 |
Current liabilities: | ' | ' |
Accounts payable | 4,394 | 4,763 |
Accrued payroll and related benefits | 3,430 | 2,786 |
Accrued interest payable | 17 | 25 |
Advance deposits | 442 | 199 |
Other accrued expenses | 11,715 | 8,465 |
Long-term debt, due within one year | 3,000 | 3,000 |
Total current liabilities | 22,998 | 19,238 |
Long-term debt, due after one year, net of discount | 39,336 | 40,058 |
Deferred income | 3,338 | 3,455 |
Deferred income taxes | 3,575 | 3,841 |
Debentures due Red Lion Hotels Capital Trust | 30,825 | 30,825 |
Total liabilities | 100,072 | 97,417 |
Commitments and contingencies | ' | ' |
Red Lion Hotels Corporation stockholders' equity | ' | ' |
Preferred stock- 5,000,000 shares authorized; $0.01 par value; no shares issued or outstanding | 0 | 0 |
Common stock - 50,000,000 shares authorized; $0.01 par value; 19,718,005 and 19,687,232 shares issued and outstanding | 197 | 197 |
Additional paid-in capital | 152,669 | 152,303 |
Accumulated other comprehensive income (loss), net of tax | -160 | -159 |
Retained earnings (accumulated deficit) | -18,651 | -15,132 |
Total stockholders' equity | 134,055 | 137,209 |
Total liabilities and stockholders’ equity | $234,127 | $234,626 |
Consolidated_Balance_Sheets_Un1
Consolidated Balance Sheets (Unaudited) (Parenthetical) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Red Lion Hotels Corporation stockholders' equity | ' | ' |
Preferred stock, par value | $0.01 | $0.01 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 19,718,005 | 19,687,232 |
Common stock, shares outstanding | 19,718,005 | 19,687,232 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (Loss) (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Revenue: | ' | ' |
Hotels | $23,746 | $22,912 |
Franchise | 1,526 | 1,264 |
Entertainment | 5,105 | 3,373 |
Other | 33 | 85 |
Total revenues | 30,410 | 27,634 |
Operating expenses: | ' | ' |
Hotels | 20,732 | 20,730 |
Franchise | 1,452 | 1,299 |
Entertainment | 4,056 | 2,984 |
Other | 114 | 108 |
Depreciation and amortization | 3,143 | 3,334 |
Hotel facility and land lease | 1,155 | 1,022 |
Loss (gain) on asset dispositions, net | -75 | -92 |
Undistributed corporate expenses | 2,114 | 1,806 |
Total operating expenses | 32,691 | 31,191 |
Other income (expense): | -2,281 | -3,557 |
Other income (expense): | ' | ' |
Interest expense | -1,217 | -1,484 |
Other income, net | 93 | 101 |
Income (loss) before taxes | -3,405 | -4,940 |
Income tax expense (benefit) | 31 | -1,940 |
Income (loss) from continuing operations | -3,436 | -3,000 |
Discontinued operations | ' | ' |
Income (loss) from discontinued business units, net of income tax (benefit) expense of $0 and ($50) for the three months ended March 31, 2014 and 2013, respectively | -83 | -65 |
Income (loss) on disposal and impairment of the assets of the discontinued business units, net of income tax (benefit) expense of $0 and ($25) for the three months ended March 31, 2014 and 2013, respectively | 0 | -45 |
Income (loss) from discontinued operations | -83 | -110 |
Net income (loss) | -3,519 | -3,110 |
Unrealized gains (losses) on cash flow hedge, net of tax | -1 | 0 |
Comprehensive income (loss) | ($3,520) | ($3,110) |
Earnings per share - basic and diluted | ' | ' |
Income (loss) from continuing operations (USD per share) | ($0.17) | ($0.15) |
Income (loss) from discontinued operations (USD per share) | $0 | ($0.01) |
Net income (loss) (USD per share) | ($0.17) | ($0.16) |
Weighted average shares - basic (shares) | 19,716 | 19,469 |
Weighted average shares - diluted (shares) | 19,716 | 19,469 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (Unaudited) (Parenthetical) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Discontinued operations | ' | ' |
Income tax (benefit) expense on discontinued business units | $0 | ($50) |
Income (loss) on disposal and impairment of the assets of the discontinued business units, net of income tax (benefit) expense | $0 | ($25) |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Operating activities: | ' | ' |
Net loss | ($3,519) | ($3,110) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ' | ' |
Depreciation and amortization | 3,143 | 3,668 |
(Gain) loss on disposition of property, equipment and other assets, net | -73 | -22 |
Amortization of debt issuance costs | 80 | 0 |
Deferred income taxes | 7 | -1,996 |
Equity in investments | 0 | 5 |
Stock based compensation expense | 330 | 300 |
Provision for doubtful accounts | 1 | 36 |
Change in current assets and liabilities: | ' | ' |
Restricted cash | 0 | -166 |
Accounts receivable | -273 | -29 |
Notes receivable | -35 | -13 |
Inventories | 120 | -106 |
Prepaid expenses and other | 427 | 40 |
Accounts payable | -369 | -623 |
Accrued payroll and related benefits | 644 | 496 |
Accrued interest payable | -8 | 726 |
Other accrued expenses and advance deposits | 3,493 | 532 |
Net cash provided by (used in) operating activities | 3,968 | -262 |
Investing activities: | ' | ' |
Purchases of property and equipment | -3,102 | -1,996 |
Proceeds from disposition of property and equipment | 295 | 1,846 |
Collection of notes receivable | 42 | 0 |
Advances to Red Lion Hotels Capital Trust | -27 | -27 |
Other, net | 0 | 3 |
Net cash used in investing activities | -2,792 | -174 |
Financing activities: | ' | ' |
Repayment of long-term debt | -750 | -843 |
Proceeds from stock options exercised | 0 | 11 |
Proceeds from issuance of common stock under employee stock purchase plan | 36 | 49 |
Additions to deferred financing costs | -5 | 0 |
Tax benefit associated with stock based plans | 0 | -100 |
Net cash used in financing activities | -719 | -883 |
Change in cash and cash equivalents: | ' | ' |
Net increase (decrease) in cash and cash equivalents | 457 | -1,319 |
Cash and cash equivalents at beginning of period | 13,058 | 6,477 |
Cash and cash equivalents at end of period | 13,515 | 5,158 |
Cash paid during periods for: | ' | ' |
Income taxes | 31 | 11 |
Interest on long-term debt | 1,174 | 758 |
Non-cash operating, investing and financing activities: | ' | ' |
Reclassification of property and other assets to assets held for sale | $137 | $7 |
Organization
Organization | 3 Months Ended | |
Mar. 31, 2014 | ||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | |
Organization | ' | |
Organization | ||
Red Lion Hotels Corporation (“Red Lion”, "we", "our", "us" or the “company”) is a NYSE-listed hospitality and leisure company (ticker symbols RLH and RLH-pa) primarily engaged in the ownership, operation and franchising of hotels under our proprietary brands, including Red Lion Hotels, Red Lion Inns & Suites and Leo Hotel Collection. Established over 30 years ago, the Red Lion brand is regionally recognized and is particularly well known in the western United States, where our hotels are located. The Red Lion brand is typically associated with midscale full and select service hotels. As of March 31, 2014, the Red Lion network of hotels was comprised of 54 hotels located in 10 states and one Canadian province. The Red Lion Hotels and Red Lion Inn & Suites network was comprised of 52 hotels with 9,014 rooms and 457,222 square feet of meeting space, of which we operated 24 hotels (19 are wholly owned and five are leased), and franchised 28 hotels. The Leo Hotel Collection was comprised of two hotels with 3,256 rooms and 241,000 square feet of meeting space. | ||
We are also engaged in entertainment operations, which derive revenues from promotion and presentation of entertainment productions and ticketing services under the operations of WestCoast Entertainment and TicketsWest. The ticketing service offers online ticket sales, ticketing inventory management systems, call center services, and outlet/electronic distributions for event locations. | ||
We were incorporated in the state of Washington in April 1978, and until 1999 operated hotels under various brand names including Cavanaughs Hotels. In 1999, we acquired WestCoast Hotels, Inc., and rebranded our Cavanaughs hotels to the WestCoast brand, changing our name to WestCoast Hospitality Corporation. In 2001, we acquired Red Lion Hotels, Inc. In September 2005, after rebranding most of our WestCoast hotels to the Red Lion brand, we changed our name to Red Lion Hotels Corporation. The financial statements encompass the accounts of Red Lion Hotels Corporation and all of its consolidated subsidiaries, including Red Lion Hotels Holdings, Inc., Red Lion Hotels Franchising, Inc., Red Lion Hotels Management, Inc., and Red Lion Hotels Limited Partnership (“RLHLP”). | ||
The financial statements include an equity method investment in a 19.9% owned real estate venture, as well as certain cost method investments in various entities included as other assets, over which we do not exercise significant influence. In addition, we hold a 3% common interest in Red Lion Hotels Capital Trust (the “Trust”) that is considered a variable interest entity. We are not the primary beneficiary of the Trust; thus, it is treated as an equity method investment. The consolidated financial statements include all of the activities of our cooperative marketing fund, a variable interest entity, of which we are the primary beneficiary. | ||
All significant inter-company and inter-segment transactions and accounts have been eliminated upon consolidation. | ||
Individual Hotels and Properties Referred to in these Condensed Notes to Consolidated Financial Statements | ||
The following individual hotels and properties will be referred to in these Condensed Notes to Consolidated Financial Statements using the terms set forth in parentheses: | ||
• | Red Lion Hotel Canyon Springs in Twin Falls, Idaho ("Canyon Springs property") | |
• | Red Lion Hotel Columbia Center in Kennewick, Washington ("Kennewick property") | |
• | Red Lion Hotel & Conference Center Kelso/Longview in Kelso, Washington ("Kelso property") | |
• | Red Lion Hotel Pocatello, Idaho ("Pocatello property") | |
• | Red Lion Hotel Wenatchee, Washington ("Wenatchee property") | |
• | Red Lion Hotel Yakima Center in Yakima Washington ("Yakima property") | |
• | Red Lion Hotel Eugene, Oregon ("Eugene property") | |
• | Red Lion Hotel Medford, Oregon ("Medford property") | |
• | Kalispell Center Mall, Kalispell, Montana ("Kalispell Mall property") |
Basis_of_Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Basis of Presentation | ' |
Basis of Presentation | |
The unaudited consolidated financial statements included herein have been prepared by us pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) and in accordance with generally accepted accounting principles in the United States of America (“GAAP”). Certain information and footnote disclosures normally included in financial statements have been condensed or omitted as permitted by such rules and regulations. | |
The consolidated balance sheet as of December 31, 2013 has been compiled from the audited balance sheet as of such date. We believe the disclosures included herein are adequate; however, they should be read in conjunction with the consolidated financial statements and the notes thereto for the year ended December 31, 2013, previously filed with the SEC on Form 10-K. | |
In the opinion of management, these unaudited consolidated financial statements contain all of the adjustments of a normal and recurring nature necessary to present fairly our consolidated financial position at March 31, 2014, the consolidated statements of comprehensive income (loss) for the three months ended March 31, 2014 and 2013, and the consolidated cash flows for the three months ended March 31, 2014 and 2013. The comprehensive income (loss) for the periods presented may not be indicative of that which may be expected for a full year. | |
Management makes estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the financial statements, the reported amounts of revenues and expenses during the reporting period and the disclosures of contingent liabilities. Actual results could materially differ from those estimates. | |
Reclassifications | |
Certain amounts in the prior period financial statements have been reclassified to conform to the current period presentation. These reclassifications had no effect on reported income/losses, total assets, or stockholders’ equity as previously reported. See Notes 4, 5 and 6. |
Recent_Accounting_Pronouncemen
Recent Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2014 | |
Accounting Changes and Error Corrections [Abstract] | ' |
Recent Accounting Pronouncements | ' |
Recent Accounting Pronouncements | |
In April 2014, the Financial Accounting Standards Board issued Accounting Standards Update ("ASU") 2014-08, "Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity.” The amendments in ASU 2014-08 change the criteria for reporting a discontinued operation and require new disclosures of both discontinued operations and certain other disposals that do not meet the definition of a discontinued operation. Only disposals representing a strategic shift in operations should be presented as discontinued operations. This accounting standard update is effective for annual filings beginning on or after December 15, 2014. Early adoption is permitted. The impact of the adoption of ASU 2014-08 on our company's results of operations, financial position, cash flows and disclosures will be based on our company’s future disposal activity. | |
Management has assessed the potential impact of other recently issued, but not yet effective, accounting standards and determined that the provisions are either not applicable to our company, or are not anticipated to have a material impact on our consolidated financial statements. |
Property_and_Equipment
Property and Equipment | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Property, Plant and Equipment [Abstract] | ' | ||||||||
Property and Equipment | ' | ||||||||
Property and Equipment | |||||||||
Property and equipment used in continuing operations is summarized as follows (in thousands): | |||||||||
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
Buildings and equipment | $ | 189,792 | $ | 188,331 | |||||
Furniture and fixtures | 32,967 | 32,685 | |||||||
Landscaping and land improvements | 6,641 | 6,459 | |||||||
229,400 | 227,475 | ||||||||
Less accumulated depreciation | (118,571 | ) | (117,343 | ) | |||||
110,829 | 110,132 | ||||||||
Land | 48,886 | 48,886 | |||||||
Construction in progress | 6,537 | 7,338 | |||||||
Property and equipment, net | $ | 166,252 | $ | 166,356 | |||||
The table as of March 31, 2014 and December 31, 2013 excludes the property and equipment of the Canyon Springs, Kennewick, Kelso, Pocatello, Wenatchee and Yakima properties. These properties were classified as assets held for sale in the fourth quarter of 2013. In addition, the table as of December 31, 2013 excludes the property and equipment of the Eugene property, which closed in January 2014. See Notes 5 and 6 for further discussion. |
Assets_Held_for_Sale
Assets Held for Sale | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Property, Plant and Equipment [Abstract] | ' | ||||||||
Assets Held for Sale | ' | ||||||||
Assets Held for Sale | |||||||||
We consider properties to be assets held for sale when all of the following criteria are met: | |||||||||
• | management commits to a plan to sell a property; | ||||||||
• | it is unlikely that the disposal plan will be significantly modified or discontinued; | ||||||||
• | the property is available for immediate sale in its present condition; | ||||||||
• | actions required to complete the sale of the property have been initiated; | ||||||||
• | sale of the property is probable, and we expect the completed sale will occur within one year; and | ||||||||
• | the property is actively being marketed for sale at a price that is reasonable given its current market value. | ||||||||
Upon designation as an asset held for sale, we record the carrying value of each property at the lower of its carrying value or its estimated fair value, less estimated costs to sell, and cease depreciation. The operations of a property held for sale prior to the sale date are recorded in discontinued operations unless we intend to have significant continuing involvement after the sale, for example, through a franchise or management agreement, in which case the operations remain part of continuing operations. | |||||||||
As discussed in Note 4, as of March 31, 2014 and December 31, 2013, the Canyon Springs, Kennewick, Kelso, Pocatello, Wenatchee and Yakima properties were classified as held for sale. All of these properties have been listed for sale, and we plan to sell all of them that have not yet been sold within one year. The property and equipment of these properties are detailed in the table below (in thousands): | |||||||||
March 31, 2014 | December 31, 2013 | ||||||||
Buildings and equipment | $ | 25,360 | $ | 25,367 | |||||
Furniture and fixtures | 7,342 | 7,337 | |||||||
Landscaping and land improvements | 1,144 | 1,138 | |||||||
33,846 | 33,842 | ||||||||
Less accumulated depreciation and amortization | (24,986 | ) | (25,207 | ) | |||||
8,860 | 8,635 | ||||||||
Land | 9,478 | 9,478 | |||||||
Construction in progress | 145 | 233 | |||||||
Assets held for sale | $ | 18,483 | $ | 18,346 | |||||
Impairments of assets held for sale in continuing operations | |||||||||
At the time each property was listed for sale, and at any time during the marketing process in which there is a change in circumstances (such as a decrease in listed price), the carrying value of the assets is written down to estimated fair value less selling costs, and an impairment is recognized in continuing operations. No impairments were identified with respect to these properties during the three months ended March 31, 2014 or 2013. |
Discontinued_Operations
Discontinued Operations | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Discontinued Operations and Disposal Groups [Abstract] | ' | ||||||||
Discontinued Operations | ' | ||||||||
Discontinued Operations | |||||||||
Of the properties discussed above in Note 5, four properties - Canyon Springs, Kelso, Pocatello and Wenatchee - were classified as discontinued operations for all periods presented as we do not anticipate maintaining significant continuing involvement following their sale. | |||||||||
In addition to these properties, during the first quarter of 2014, we ceased the operation of our Eugene property when we assigned our lease to another party. Accordingly, all operations of the Eugene property have been classified as discontinued operations for all periods presented. | |||||||||
Discontinued operations as of March 31, 2013 also includes the activities of the Kalispell Mall and Medford properties which were sold in the second and third quarters of 2013, respectively, as well the activities of a catering contract in Yakima, Washington, which we decided to cease operating in the first quarter of 2013. | |||||||||
As of March 31, 2014 and December 31, 2013, the assets and liabilities associated with the Canyon Springs, Kelso, Pocatello and Wenatchee properties are included on the consolidated balance sheets under assets held for sale. In addition, included in the balance sheet at December 31, 2013, were $0.6 million of assets and $0.1 million of liabilities associated with the discontinued operations of the Eugene property. | |||||||||
The following table summarizes the assets and liabilities of discontinued operations included in the consolidated balance sheets as of March 31, 2014 and December 31, 2013 (in thousands): | |||||||||
March 31, | December 31, 2013(2) | ||||||||
2014 (1) | |||||||||
ASSETS | |||||||||
Cash and cash equivalents | $ | 112 | $ | 105 | |||||
Accounts receivable, net | 233 | 337 | |||||||
Inventories | 111 | 145 | |||||||
Prepaid expenses and other | 75 | 211 | |||||||
Total current assets | 531 | 798 | |||||||
Property and equipment, net | 12,201 | 12,487 | |||||||
Total assets, net | $ | 12,732 | $ | 13,285 | |||||
LIABILITIES | |||||||||
Accounts payable | $ | 77 | $ | 115 | |||||
Accrued payroll related benefits | 166 | 131 | |||||||
Advance deposits | 23 | 16 | |||||||
Other accrued expense | 351 | 342 | |||||||
Total current liabilities | $ | 617 | $ | 604 | |||||
(1) As of March 31, 2014, the properties included are the Canyon Springs, Pocatello, Kelso and Wenatchee properties. | |||||||||
(2) As of December 31, 2013, the properties included are the Canyon Springs, Pocatello, Kelso, Wenatchee and Eugene properties. | |||||||||
The following table summarizes the results of discontinued operations for the periods indicated (in thousands): | |||||||||
Three Months Ended March 31, | |||||||||
2014 | 2013 | ||||||||
Revenues | $ | 2,311 | $ | 4,223 | |||||
Operating expenses | (2,364 | ) | (3,859 | ) | |||||
Hotel facility and land lease | (30 | ) | (146 | ) | |||||
Depreciation and amortization | — | (333 | ) | ||||||
Income tax benefit | — | 50 | |||||||
Income (loss) from operations of discontinued business units, net of tax | (83 | ) | (65 | ) | |||||
Loss on disposal and impairment of the assets of discontinued business units | — | (70 | ) | ||||||
Income tax benefit | — | 25 | |||||||
Loss on disposal and impairment of the assets of the discontinued business units, net of tax | — | (45 | ) | ||||||
Income (loss) from discontinued operations | $ | (83 | ) | $ | (110 | ) | |||
Changes to discontinued operations in 2014 | |||||||||
The following properties were classified as discontinued operations in the consolidated statements of comprehensive income (loss) for the year ended December 31, 2013 and subsequently reclassified in 2014 into continuing operations due to a determination that our company will have continuing involvement through a franchise agreement. | |||||||||
Yakima Property | |||||||||
During the fourth quarter of 2013, we listed for sale the Yakima property. At the time we did not anticipate maintaining significant continuing involvement. Accordingly, the operations of this property were classified as discontinued operations in our consolidated statements of comprehensive income (loss) for the year ended December 31, 2013. The property and equipment of this property have been classified as assets held for sale in the consolidated balance sheets as of March 31, 2014 and December 31, 2013. | |||||||||
Subsequent to the end of the quarter, we entered into a definitive agreement to sell the property for $3.7 million and closed that sale in April 2014. Concurrent with the sale, the purchaser signed a franchise agreement. We determined that while the continuing cash flows from operations are not significant, we still have significant involvement under the franchise agreement such that the property should not continue to be classified as discontinued operations. It has been reclassified to continuing operations for all periods presented. | |||||||||
Kennewick Property | |||||||||
During the first quarter of 2014, we determined it was more likely than not that we would retain a franchise agreement upon completion of the sale of the Kennewick property and therefore have determined the property should not be classified as discontinued operations. It has been reclassified to continuing operations for all periods presented. | |||||||||
Impairments of assets held for sale in discontinued operations | |||||||||
At the time each property was listed for sale, and at any time during the marketing process in which there is a change in circumstances (such as a decrease in listed price), the carrying value of the assets is written down to estimated fair value less selling costs, and an impairment is recognized in discontinued operations. No impairments were identified with respect to these properties during the three months ended March 31, 2014 or 2013. |
Goodwill_and_Intangibles
Goodwill and Intangibles | 3 Months Ended |
Mar. 31, 2014 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ' |
Goodwill and Intangibles | ' |
Goodwill and Intangible Assets | |
Goodwill represents the excess of the estimated fair value of the net assets acquired during business combinations over the net tangible and identifiable intangible assets acquired. Goodwill was recorded in prior years in connection with the acquisitions of franchises and entertainment businesses. The Red Lion brand name is an identifiable, indefinite lived-intangible asset that represents the separable legal right to a trade name and associated trademarks acquired in a business combination we entered into in 2001. Goodwill and the brand name are not amortized; however, we assess goodwill and the brand name for potential impairments annually in the fourth quarter, or during the year if an event or other circumstance indicates that we may not be able to recover the carrying amount of the assets. We did not impair any goodwill or intangible assets during the three months ended March 31, 2014 or 2013. |
Credit_Facility_and_Long_Term_
Credit Facility and Long Term Debt | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Debt Disclosure [Abstract] | ' | ||||||||||||||||
Credit Facility and Long Term Debt | ' | ||||||||||||||||
Credit Facility and Long-Term Debt | |||||||||||||||||
The current and non-current portions of long-term debt and capital lease obligations as of March 31, 2014 and December 31, 2013 are as follows: | |||||||||||||||||
March 31, 2014 | December 31, 2013 | ||||||||||||||||
Current | Non-Current | Current | Non-Current | ||||||||||||||
Wells Fargo credit facility | $ | 3,000 | $ | 39,336 | $ | 3,000 | $ | 40,058 | |||||||||
Debentures due Red Lion Hotels Capital Trust | — | 30,825 | — | 30,825 | |||||||||||||
$ | 3,000 | $ | 70,161 | $ | 3,000 | $ | 70,883 | ||||||||||
Wells Fargo Credit Facility | |||||||||||||||||
In June 2013, we entered into a credit facility agreement with Wells Fargo Bank, National Association ("Wells Fargo") to expand our existing credit facility. The credit facility balance of $42.3 million represents outstanding principal payments of $42.8 million net of unamortized origination fees of $0.5 million. In addition to this term loan, we have a revolving line of credit with Wells Fargo for up to $10.0 million, a portion of which supports outstanding letters of credit. At March 31, 2014, $9.8 million on the revolving line of credit was available as we had $0.2 million in letters of credit and no outstanding borrowings as of that date. The $10.0 million revolving line of credit is available under the facility until June 30, 2015. | |||||||||||||||||
Principal payments of $750,000 are required on the term loan on the last day of each calendar quarter or the first business day thereafter. If a property securing the facility is sold we will be required to make an additional principal payment on the term loan equal to the greater of (i) 50% of the net proceeds from the sale or (ii) 50% of the appraised market value of the property sold. If any such additional principal payment exceeds $1 million, the remaining principal balance amortization will be modified to reflect the additional payment. The term loan matures on June 29, 2018. | |||||||||||||||||
Our obligations under the facility are (i) guaranteed by our subsidiaries Red Lion Hotels Limited Partnership, Red Lion Hotels Franchising, Inc., Red Lion Hotels Management, Inc. and Red Lion Hotels Holdings, Inc., (ii) secured by our accounts receivable and inventory, and (iii) further collateralized by 19 of our hotel properties located in Bellevue, Spokane, Olympia, Port Angeles, Kennewick, Kelso, Richland, Pasco, Yakima and Wenatchee, Washington; in Post Falls, Pocatello, Twin Falls and Boise, Idaho; in Bend and Coos Bay, Oregon; in Eureka and Redding, California; and in Salt Lake City, Utah. | |||||||||||||||||
As discussed in Notes 5 and 16, in April 2014 we closed on the sale of the Yakima property, which was pledged as collateral for our credit facility. As required under the terms of the loan, we made a principal payment of $2.6 million from the proceeds of the sale in April 2014. | |||||||||||||||||
The facility requires us to comply with customary affirmative and negative covenants, as well as financial covenants relating to leverage, debt service, and loan coverage ratios. It also includes customary events of default. We were in compliance with these covenants at March 31, 2014 and December 31, 2013. | |||||||||||||||||
Debentures of Red Lion Hotels Capital Trust | |||||||||||||||||
Together with the Trust, we completed a public offering of $46.0 million of trust preferred securities in 2004. The securities are listed on the New York Stock Exchange and entitle holders to cumulative cash distributions at a 9.5% annual rate with maturity in February 2044. The cost of the offering totaled $2.3 million, which the Trust paid through an advance by us. The advance to the Trust is included with other noncurrent assets on our consolidated balance sheets. | |||||||||||||||||
We borrowed all of the proceeds from the offering, including our original 3% trust common investment of $1.4 million, on the same day through 9.5% debentures that are included as a long-term liability on our consolidated balance sheets. The debentures mature in 2044 and their payment terms mirror the distribution terms of the trust securities. The debenture agreement required the mandatory redemption of 35% of the then-outstanding trust securities at 105% of issued value if we completed an offering of common shares with gross proceeds of greater than $50 million. In accordance therewith and in connection with a common stock offering in May 2006, we repaid approximately $16.6 million of the debentures due the Trust. The Trust then redeemed 35% of the outstanding trust preferred securities and trust common securities at a price of $26.25 per share, a 5% premium over the issued value of the securities. Of the $16.6 million, approximately $0.5 million was received back by us for our trust common securities and was reflected as a reduction of our investment in the Trust. At March 31, 2014 and December 31, 2013, debentures due the Trust totaled $30.8 million. |
Derivative_Financial_Instrumen
Derivative Financial Instruments and Accumulated Other Comprehensive Income (Loss) (Notes) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||||||
Derivative Financial Instruments and Accumulated Other Comprehensive Income (Loss) | ' | ||||||||
Derivative Financial Instruments and Accumulated Other Comprehensive Income (Loss) | |||||||||
We do not enter into derivative transactions for trading purposes, but rather to hedge our exposure to interest rate fluctuations. We manage our floating rate debt using interest rate swaps in order to reduce our exposure to the impact of changing interest rates and future cash outflows for interest. | |||||||||
As required under our credit facility, we entered into an interest rate swap with Wells Fargo to hedge the first 40% of our interest rate exposure. The swap has an original notional amount of $18.0 million and a fixed rate of 4.88%. Our contractual quarterly payments have reduced the outstanding notional amount to $17.1 million as of March 31, 2014. The swap is settled on the same day as the required monthly interest payments on the term loan and expires on June 29, 2018. | |||||||||
We followed the requirements of guidance primarily codified within Accounting Standards Codification ("ASC') Topic No. 815, “Derivatives and Hedging” (“ASC 815”) pertaining to the accounting for derivatives and hedging activities. ASC 815 requires us to recognize all derivative instruments on our balance sheet at fair value. The related gains or losses on these transactions are deferred in stockholders' equity as a component of accumulated other comprehensive income or loss. These deferred gains and losses are recognized in income in the period in which the related items being hedged are recognized in interest expense. However, to the extent that the change in value of a derivative contract does not perfectly offset the change in the value of the items being hedged, that ineffective portion is immediately recognized in interest expense. Our interest rate hedge was designated as a cash flow hedge and is deemed to be effective at March 31, 2014 as the critical terms have not changed since inception. | |||||||||
We measure the value of the interest rate swap utilizing an income approach valuation technique, converting future amounts of cash flows to a single present value in order to obtain a transfer exit price within the bid and ask spread that is most representative of the fair value of our derivative instruments. This option-pricing technique utilizes a one-month LIBOR forward yield curve, obtained from an independent external service. | |||||||||
At March 31, 2014, the valuation of the interest rate swap resulted in the recognition of a swap liability totaling $0.2 million, which is included in other accrued expenses on the balance sheet. | |||||||||
Accumulated other comprehensive income (loss) | |||||||||
Changes in accumulated other comprehensive income (loss), comprised entirely of changes in the fair value of our cash flow hedge, were as follows: | |||||||||
Three Months Ended March 31, | |||||||||
2014 | 2013 | ||||||||
(In thousands) | |||||||||
Balance, beginning of period | $ | (159 | ) | $ | — | ||||
Loss on cash flow hedge, net of tax | (1 | ) | — | ||||||
Balance, end of period | $ | (160 | ) | $ | — | ||||
Business_Segments
Business Segments | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Segment Reporting [Abstract] | ' | ||||||||
Business Segments | ' | ||||||||
Business Segments | |||||||||
As of March 31, 2014, we had three operating segments: hotels, franchise and entertainment. The “other” segment consists of miscellaneous revenues and expenses, cash and cash equivalents, certain receivables and certain property and equipment which are not specifically associated with an operating segment. Management reviews and evaluates the operating segments exclusive of interest expense and income taxes; therefore, those two items have not been allocated to the segments. All balances have been presented after the elimination of inter-segment and intra-segment revenues and expenses. | |||||||||
Selected information with respect to continuing operations is provided below (in thousands): | |||||||||
Three Months Ended March 31, | |||||||||
2014 | 2013 | ||||||||
Revenues: | |||||||||
Hotels | $ | 23,746 | $ | 22,912 | |||||
Franchise | 1,526 | 1,264 | |||||||
Entertainment | 5,105 | 3,373 | |||||||
Other | 33 | 85 | |||||||
$ | 30,410 | $ | 27,634 | ||||||
Operating income (loss) by segment: | |||||||||
Hotels | $ | (933 | ) | $ | (1,657 | ) | |||
Franchise | 62 | (47 | ) | ||||||
Entertainment | 964 | 310 | |||||||
Other | (2,374 | ) | (2,163 | ) | |||||
Total operating income (loss) | (2,281 | ) | (3,557 | ) | |||||
Interest expense | (1,217 | ) | (1,484 | ) | |||||
Other income | 93 | 101 | |||||||
Income tax (expense) benefit | (31 | ) | 1,940 | ||||||
Income (loss) from continuing operations | $ | (3,436 | ) | $ | (3,000 | ) | |||
March 31, 2014 | December 31, 2013 | ||||||||
Identifiable assets: | |||||||||
Hotels (1) | $ | 193,338 | $ | 192,225 | |||||
Franchise | 9,725 | 9,348 | |||||||
Entertainment | 5,734 | 6,759 | |||||||
Other | 25,330 | 26,294 | |||||||
$ | 234,127 | $ | 234,626 | ||||||
__________ | |||||||||
-1 | Includes the identifiable assets of discontinued operations that are classified as held for sale. |
Earnings_Loss_Per_Share
Earnings (Loss) Per Share | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Earnings Per Share [Abstract] | ' | ||||||||
Earnings (Loss) Per Share | ' | ||||||||
Earnings (Loss) Per Share | |||||||||
The following table presents a reconciliation of the numerators and denominators used in the basic and diluted net income (loss) per share computations for the three months ended March 31, 2014 and 2013 (in thousands, except per share amounts): | |||||||||
Three Months Ended March 31, | |||||||||
2014 | 2013 | ||||||||
Numerator - basic and diluted: | |||||||||
Income (loss) from continuing operations | $ | (3,436 | ) | $ | (3,000 | ) | |||
Income (loss) from discontinued operations | (83 | ) | (110 | ) | |||||
Net income (loss) | $ | (3,519 | ) | $ | (3,110 | ) | |||
Denominator: | |||||||||
Weighted average shares - basic | 19,716 | 19,469 | |||||||
Weighted average shares - diluted | 19,716 | 19,469 | |||||||
Earnings (loss) per share | |||||||||
Income (loss) from continuing operations | $ | (0.17 | ) | $ | (0.15 | ) | |||
Income (loss) from discontinued operations | $ | — | $ | (0.01 | ) | ||||
Net income (loss) | $ | (0.17 | ) | $ | (0.16 | ) | |||
For the three months ended March 31, 2014, all of the 118,127 options to purchase common shares and all of the 314,618 restricted stock units outstanding as of that date were considered antidilutive due to losses in the period. For the three months ended March 31, 2013, all of the 169,783 options to purchase common shares and all of the 308,217 restricted stock units outstanding as of that date were considered antidilutive due to losses in the period. |
Income_Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2014 | |
Income Tax Disclosure [Abstract] | ' |
Income Taxes | ' |
Income Taxes | |
We make estimates and judgments in determining income tax expense or benefit for financial statement purposes. These estimates and judgments occur in the calculation of certain tax assets and liabilities, which typically arise from differences in the timing of recognition of revenue and expense for tax and financial statement purposes, and the determination of tax credits and other items that impact our income tax expense or benefit. | |
At March 31, 2014 we were not able to reliably estimate the full year effective tax rate. Accordingly, we have recognized interim income tax benefit using the discrete method based on actual results for the three months ended March 31, 2014. The effective tax rates from continuing operations at March 31, 2014 and 2013 were (0.85)% and 39.2%, respectively. The difference between the effective tax rates and the statutory rate of 34.0% for three months ended March 31, 2014 is driven by the impact of a valuation allowance recorded as of December 31, 2013 to reduce our deferred tax assets to an amount that is more likely than not to be realized. The difference between the effective tax rate and the statutory tax rate of 34.0% for the three months ended March 31, 2013 is primarily driven by state income taxes, federal tax credits, and non-deductible expenses. | |
We recognize the financial statement effect of a tax position when, based on the technical merits of the uncertain tax position, it is more likely than not to be sustained on a review by taxing authorities. These estimates are based on judgments made with currently available information. We review these estimates and make changes to recorded amounts of uncertain positions as facts and circumstances warrant. We had no material uncertain tax positions at March 31, 2014 and do not anticipate a significant change in any unrecognized tax benefits over the next 12 months. Accordingly, we have not provided for any unrecognized tax benefits or related interest and penalties. With limited exception, we are no longer subject to U.S. federal, state and local income tax examinations by taxing authorities for years prior to 2008. | |
We assess the available positive and negative evidence to estimate if sufficient future taxable income will be generated to use the existing deferred tax assets. A significant piece of objective negative evidence evaluated is the cumulative loss incurred over the three-year period ended March 31, 2014. Such objective evidence limits the ability to consider other subjective evidence such as our projections for future growth. | |
As of March 31, 2014 and December 31, 2013, a valuation allowance of $7.2 million and $5.9 million has been recorded, respectively, to reduce deferred tax assets to an amount that is more likely than not to be realized. The amount of the deferred tax asset considered realizable, however, could be adjusted if objective negative evidence in the form of cumulative losses is no longer present and additional weight may be given to subjective evidence such as our projections for growth. Should we determine we will be able to realize our deferred tax assets, the tax benefits relating to any reversal of the valuation allowance will be accounted for as a reduction of income tax expense. |
Stock_Based_Compensation
Stock Based Compensation | 3 Months Ended | |||||||||||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||||||||||||||||
Stock Based Compensation | ' | |||||||||||||||||||||||||||
Stock Based Compensation | ||||||||||||||||||||||||||||
Stock Incentive Plans | ||||||||||||||||||||||||||||
The 2006 Stock Incentive Plan authorizes the grant or issuance of various option and other awards including restricted stock units and other stock-based compensation. The plan was approved by our shareholders and allowed awards of 2.0 million shares, subject to adjustments for stock splits, stock dividends and similar events. As of March 31, 2014, there were 653,196 shares of common stock available for issuance pursuant to future stock option grants or other awards under the 2006 plan. | ||||||||||||||||||||||||||||
Stock Option Plans | ||||||||||||||||||||||||||||
In the three months ended March 31, 2014 and 2013 we recognized no compensation expense related to options. | ||||||||||||||||||||||||||||
A summary of stock option activity for the three months ended March 31, 2014, is as follows: | ||||||||||||||||||||||||||||
Number | Weighted | |||||||||||||||||||||||||||
of Shares | Average | |||||||||||||||||||||||||||
Exercise | ||||||||||||||||||||||||||||
Price | ||||||||||||||||||||||||||||
Balance, January 1, 2014 | 167,607 | $ | 9.49 | |||||||||||||||||||||||||
Options granted | — | $ | — | |||||||||||||||||||||||||
Options exercised | — | $ | — | |||||||||||||||||||||||||
Options forfeited | (49,480 | ) | $ | 8.72 | ||||||||||||||||||||||||
Balance, March 31, 2014 | 118,127 | $ | 9.82 | |||||||||||||||||||||||||
Exercisable, March 31, 2014 | 118,127 | $ | 9.82 | |||||||||||||||||||||||||
Additional information regarding stock options outstanding and exercisable as of March 31, 2014, is as follows: | ||||||||||||||||||||||||||||
Range of | Number | Weighted | Expiration | Weighted | Aggregate | Number | Weighted | Aggregate | ||||||||||||||||||||
Exercise | Outstanding | Average | Date | Average | Intrinsic | Exercisable | Average | Intrinsic | ||||||||||||||||||||
Prices | Remaining | Exercise | Value(1) | Exercise | Value(1) | |||||||||||||||||||||||
Contractual | Price | Price | ||||||||||||||||||||||||||
Life (Years) | ||||||||||||||||||||||||||||
$5.10 | 5,000 | 0.64 | 2014 | $ | 5.1 | $ | 3,650 | 5,000 | $ | 5.1 | $ | 3,650 | ||||||||||||||||
$7.10 - $7.46 | 8,161 | 1.2 | 2014-2015 | 7.36 | — | 8,161 | 7.36 | — | ||||||||||||||||||||
$8.74 | 64,471 | 3.71 | 2014-2018 | 8.74 | — | 64,471 | 8.74 | — | ||||||||||||||||||||
$12.21-$13.00 | 40,495 | 2.57 | 2014-2017 | 12.62 | — | 40,495 | 12.62 | — | ||||||||||||||||||||
118,127 | 3.02 | 2014-2018 | $ | 9.82 | $ | 3,650 | 118,127 | $ | 9.82 | $ | 3,650 | |||||||||||||||||
__________ | ||||||||||||||||||||||||||||
-1 | The aggregate intrinsic value is before applicable income taxes and represents the amount option recipients would have received if all options had been fully vested and exercised on the last trading day of the first three months of 2014, or March 31, 2014, based upon our closing stock price on that date of $5.83. | |||||||||||||||||||||||||||
Restricted Stock Units, Shares Issued as Compensation | ||||||||||||||||||||||||||||
As of March 31, 2014 and 2013, there were 314,618 and 308,217 unvested restricted stock units outstanding. Since we began issuing restricted stock units, approximately 20.9% of total units granted have been forfeited. In the first quarter of 2014, we recognized approximately $0.2 million in compensation expense related to restricted stock units compared to $0.2 million in the comparable period in 2013. As the restricted stock units vest, we expect to recognize approximately $1.6 million in additional compensation expense over a weighted average period of 32 months, including $0.5 million during the remainder of 2014. | ||||||||||||||||||||||||||||
A summary of restricted stock unit activity for the three months ended March 31, 2014, is as follows: | ||||||||||||||||||||||||||||
Number | Weighted | |||||||||||||||||||||||||||
of Shares | Average | |||||||||||||||||||||||||||
Grant Date | ||||||||||||||||||||||||||||
Fair Value | ||||||||||||||||||||||||||||
Balance, January 1, 2014 | 303,749 | $ | 7.32 | |||||||||||||||||||||||||
Granted | 52,012 | $ | 5.79 | |||||||||||||||||||||||||
Vested | — | $ | — | |||||||||||||||||||||||||
Forfeited | (41,143 | ) | $ | 7.08 | ||||||||||||||||||||||||
Balance, March 31, 2014 | 314,618 | $ | 7.1 | |||||||||||||||||||||||||
Employee Stock Purchase Plan | ||||||||||||||||||||||||||||
In January 2008, we adopted the 2008 employee stock purchase plan (the “2008 ESPP”) upon the expiration of its predecessor plan. Under the 2008 ESPP, a total of 300,000 shares of common stock are authorized for purchase by eligible employees at a discount through payroll deductions. No employee may purchase more than $25,000 worth of shares in any calendar year, or more than 10,000 shares during any six-month purchase period under the plan. As allowed under the 2008 ESPP, a participant may elect to withdraw from the plan, effective for the purchase period in progress at the time of the election with all accumulated payroll deductions returned to the participant at the time of withdrawal. In January 2014, 7,405 shares were issued to participants under the terms of the plan. |
Fair_Value_of_Financial_Instru
Fair Value of Financial Instruments | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
Fair Value of Financial Instruments | ' | ||||||||||||||||
Fair Value of Financial Instruments | |||||||||||||||||
Applicable accounting standards define fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (an exit price). We measure our assets and liabilities using inputs from the following three levels of the fair value hierarchy: | |||||||||||||||||
Level 1 inputs are unadjusted quoted prices in active markets for identical assets or liabilities that we have the ability to access at the measurement date. | |||||||||||||||||
Level 2 inputs include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (i.e., interest rates, yield curves, etc.), and inputs that are derived principally from or corroborated by observable market data by correlation or other means (market corroborated inputs). | |||||||||||||||||
Level 3 includes unobservable inputs that reflect assumptions about what factors market participants would use in pricing the asset or liability. We develop these inputs based on the best information available, including our own data. | |||||||||||||||||
Estimated fair values of financial instruments (in thousands) are shown in the table below. The carrying amounts for cash and cash equivalents, accounts receivable and current liabilities are reasonable estimates of their fair values. The carrying amounts of our current notes receivable are reasonable estimates of their fair values due to the short nature of the loans (they are expected to be satisfied within a year). We estimate the fair value of our interest rate swap using standard calculations that use as their basis readily available observable market parameters, which are Level 2 inputs. We estimate the fair value of our long-term debt, excluding leases, using expected future payments discounted at risk-adjusted rates, both of which are Level 3 inputs. The debentures are valued at the closing price on March 31, 2014, of the underlying trust preferred securities on the New York Stock Exchange, which was a directly observable Level 1 input. The fair values provided below are not necessarily indicative of the amounts we or the debt holders could realize in a current market exchange. In addition, potential income tax ramifications related to the realization of gains and losses that would be incurred in an actual sale or settlement have not been taken into consideration. | |||||||||||||||||
March 31, 2014 | December 31, 2013 | ||||||||||||||||
Carrying | Fair | Carrying | Fair | ||||||||||||||
Amount | Value | Amount | Value | ||||||||||||||
Financial assets: | |||||||||||||||||
Cash and cash equivalents and restricted cash(1) | $ | 13,515 | $ | 13,515 | $ | 13,058 | $ | 13,058 | |||||||||
Accounts receivable(1) | $ | 6,555 | $ | 6,555 | $ | 6,283 | $ | 6,283 | |||||||||
Notes receivable | $ | 5,088 | $ | 5,088 | $ | 5,095 | $ | 5,095 | |||||||||
Financial liabilities: | |||||||||||||||||
Current liabilities, excluding debt(1) | $ | 19,838 | $ | 19,838 | $ | 16,238 | $ | 16,238 | |||||||||
Total debt | $ | 42,336 | $ | 42,516 | $ | 43,058 | $ | 44,311 | |||||||||
Debentures | $ | 30,825 | $ | 32,058 | $ | 30,825 | $ | 32,058 | |||||||||
__________ | |||||||||||||||||
-1 | Includes the cash, accounts receivable, and current liabilities of discontinued operations held for sale as of March 31, 2014 and December 31, 2013. |
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Commitments and Contingencies | ' |
Commitments and Contingencies | |
At any given time we are subject to claims and actions incidental to the operations of our business. Based on information currently available, we do not expect that any sums we may receive or have to pay in connection with any legal proceeding would have a materially adverse effect on our consolidated financial position or net cash flow. | |
Due to our equity method investment in a 19.9% owned real estate venture, we are considered a guarantor of the mortgage for the building associated with that investment. We would be obligated to pay a portion of this mortgage in the event the real estate venture were unable to meet its principal or interest payment obligations. As of March 31, 2014, the maximum amount payable under this guarantee was approximately $1.8 million, which represents 19.9% of the outstanding mortgage balance. At each reporting date, it was not probable that we would be required to pay any of this amount; thus we have not accrued a liability for any portion of this obligation in our March 31, 2014 or December 31, 2013 financial statements. |
Subsequent_Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2014 | |
Subsequent Events [Abstract] | ' |
Subsequent Events | ' |
Subsequent Events | |
On April 10, 2014, we closed on the sale of the Yakima property for $3.7 million. This property was pledged as collateral for our Wells Fargo credit facility. Under the terms of that facility, we made a principal payment in the amount of $2.6 million on the facility's term loan when the sale closed. See Notes 5 and 8 for further discussion. Concurrent with the sale, we entered into a franchise agreement with the buyer. |
Property_and_Equipment_Tables
Property and Equipment (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Property, Plant and Equipment [Abstract] | ' | ||||||||
Schedule of Property, Plant and Equipment | ' | ||||||||
Property and equipment used in continuing operations is summarized as follows (in thousands): | |||||||||
March 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
Buildings and equipment | $ | 189,792 | $ | 188,331 | |||||
Furniture and fixtures | 32,967 | 32,685 | |||||||
Landscaping and land improvements | 6,641 | 6,459 | |||||||
229,400 | 227,475 | ||||||||
Less accumulated depreciation | (118,571 | ) | (117,343 | ) | |||||
110,829 | 110,132 | ||||||||
Land | 48,886 | 48,886 | |||||||
Construction in progress | 6,537 | 7,338 | |||||||
Property and equipment, net | $ | 166,252 | $ | 166,356 | |||||
Assets_Held_for_Sale_Tables
Assets Held for Sale (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Property, Plant and Equipment [Abstract] | ' | ||||||||
Schedule of Property and Equipment, Assets Held for Sale | ' | ||||||||
The property and equipment of these properties are detailed in the table below (in thousands): | |||||||||
March 31, 2014 | December 31, 2013 | ||||||||
Buildings and equipment | $ | 25,360 | $ | 25,367 | |||||
Furniture and fixtures | 7,342 | 7,337 | |||||||
Landscaping and land improvements | 1,144 | 1,138 | |||||||
33,846 | 33,842 | ||||||||
Less accumulated depreciation and amortization | (24,986 | ) | (25,207 | ) | |||||
8,860 | 8,635 | ||||||||
Land | 9,478 | 9,478 | |||||||
Construction in progress | 145 | 233 | |||||||
Assets held for sale | $ | 18,483 | $ | 18,346 | |||||
Discontinued_Operations_Tables
Discontinued Operations (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Discontinued Operations and Disposal Groups [Abstract] | ' | ||||||||
Schedule of Disposal Groups, Including Discontinued Operations, Balance Sheet and Income Statement | ' | ||||||||
The following table summarizes the assets and liabilities of discontinued operations included in the consolidated balance sheets as of March 31, 2014 and December 31, 2013 (in thousands): | |||||||||
March 31, | December 31, 2013(2) | ||||||||
2014 (1) | |||||||||
ASSETS | |||||||||
Cash and cash equivalents | $ | 112 | $ | 105 | |||||
Accounts receivable, net | 233 | 337 | |||||||
Inventories | 111 | 145 | |||||||
Prepaid expenses and other | 75 | 211 | |||||||
Total current assets | 531 | 798 | |||||||
Property and equipment, net | 12,201 | 12,487 | |||||||
Total assets, net | $ | 12,732 | $ | 13,285 | |||||
LIABILITIES | |||||||||
Accounts payable | $ | 77 | $ | 115 | |||||
Accrued payroll related benefits | 166 | 131 | |||||||
Advance deposits | 23 | 16 | |||||||
Other accrued expense | 351 | 342 | |||||||
Total current liabilities | $ | 617 | $ | 604 | |||||
(1) As of March 31, 2014, the properties included are the Canyon Springs, Pocatello, Kelso and Wenatchee properties. | |||||||||
(2) As of December 31, 2013, the properties included are the Canyon Springs, Pocatello, Kelso, Wenatchee and Eugene properties. | |||||||||
The following table summarizes the results of discontinued operations for the periods indicated (in thousands): | |||||||||
Three Months Ended March 31, | |||||||||
2014 | 2013 | ||||||||
Revenues | $ | 2,311 | $ | 4,223 | |||||
Operating expenses | (2,364 | ) | (3,859 | ) | |||||
Hotel facility and land lease | (30 | ) | (146 | ) | |||||
Depreciation and amortization | — | (333 | ) | ||||||
Income tax benefit | — | 50 | |||||||
Income (loss) from operations of discontinued business units, net of tax | (83 | ) | (65 | ) | |||||
Loss on disposal and impairment of the assets of discontinued business units | — | (70 | ) | ||||||
Income tax benefit | — | 25 | |||||||
Loss on disposal and impairment of the assets of the discontinued business units, net of tax | — | (45 | ) | ||||||
Income (loss) from discontinued operations | $ | (83 | ) | $ | (110 | ) |
Credit_Facility_and_Long_Term_1
Credit Facility and Long Term Debt Long Term Debt (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Debt Disclosure [Abstract] | ' | ||||||||||||||||
Schedule of Long-term Debt Instruments | ' | ||||||||||||||||
The current and non-current portions of long-term debt and capital lease obligations as of March 31, 2014 and December 31, 2013 are as follows: | |||||||||||||||||
March 31, 2014 | December 31, 2013 | ||||||||||||||||
Current | Non-Current | Current | Non-Current | ||||||||||||||
Wells Fargo credit facility | $ | 3,000 | $ | 39,336 | $ | 3,000 | $ | 40,058 | |||||||||
Debentures due Red Lion Hotels Capital Trust | — | 30,825 | — | 30,825 | |||||||||||||
$ | 3,000 | $ | 70,161 | $ | 3,000 | $ | 70,883 | ||||||||||
Derivative_Financial_Instrumen1
Derivative Financial Instruments and Accumulated Other Comprehensive Income (Loss) (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) | ' | ||||||||
Changes in accumulated other comprehensive income (loss), comprised entirely of changes in the fair value of our cash flow hedge, were as follows: | |||||||||
Three Months Ended March 31, | |||||||||
2014 | 2013 | ||||||||
(In thousands) | |||||||||
Balance, beginning of period | $ | (159 | ) | $ | — | ||||
Loss on cash flow hedge, net of tax | (1 | ) | — | ||||||
Balance, end of period | $ | (160 | ) | $ | — | ||||
Business_Segments_Tables
Business Segments (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Segment Reporting [Abstract] | ' | ||||||||
Schedule of Segment Reporting Information | ' | ||||||||
Selected information with respect to continuing operations is provided below (in thousands): | |||||||||
Three Months Ended March 31, | |||||||||
2014 | 2013 | ||||||||
Revenues: | |||||||||
Hotels | $ | 23,746 | $ | 22,912 | |||||
Franchise | 1,526 | 1,264 | |||||||
Entertainment | 5,105 | 3,373 | |||||||
Other | 33 | 85 | |||||||
$ | 30,410 | $ | 27,634 | ||||||
Operating income (loss) by segment: | |||||||||
Hotels | $ | (933 | ) | $ | (1,657 | ) | |||
Franchise | 62 | (47 | ) | ||||||
Entertainment | 964 | 310 | |||||||
Other | (2,374 | ) | (2,163 | ) | |||||
Total operating income (loss) | (2,281 | ) | (3,557 | ) | |||||
Interest expense | (1,217 | ) | (1,484 | ) | |||||
Other income | 93 | 101 | |||||||
Income tax (expense) benefit | (31 | ) | 1,940 | ||||||
Income (loss) from continuing operations | $ | (3,436 | ) | $ | (3,000 | ) | |||
March 31, 2014 | December 31, 2013 | ||||||||
Identifiable assets: | |||||||||
Hotels (1) | $ | 193,338 | $ | 192,225 | |||||
Franchise | 9,725 | 9,348 | |||||||
Entertainment | 5,734 | 6,759 | |||||||
Other | 25,330 | 26,294 | |||||||
$ | 234,127 | $ | 234,626 | ||||||
__________ | |||||||||
-1 | Includes the identifiable assets of discontinued operations that are classified as held for sale. |
Earnings_Loss_Per_Share_Tables
Earnings (Loss) Per Share (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Earnings Per Share [Abstract] | ' | ||||||||
Schedule of Earnings Per Share, Basic and Diluted | ' | ||||||||
The following table presents a reconciliation of the numerators and denominators used in the basic and diluted net income (loss) per share computations for the three months ended March 31, 2014 and 2013 (in thousands, except per share amounts): | |||||||||
Three Months Ended March 31, | |||||||||
2014 | 2013 | ||||||||
Numerator - basic and diluted: | |||||||||
Income (loss) from continuing operations | $ | (3,436 | ) | $ | (3,000 | ) | |||
Income (loss) from discontinued operations | (83 | ) | (110 | ) | |||||
Net income (loss) | $ | (3,519 | ) | $ | (3,110 | ) | |||
Denominator: | |||||||||
Weighted average shares - basic | 19,716 | 19,469 | |||||||
Weighted average shares - diluted | 19,716 | 19,469 | |||||||
Earnings (loss) per share | |||||||||
Income (loss) from continuing operations | $ | (0.17 | ) | $ | (0.15 | ) | |||
Income (loss) from discontinued operations | $ | — | $ | (0.01 | ) | ||||
Net income (loss) | $ | (0.17 | ) | $ | (0.16 | ) |
Stock_Based_Compensation_Table
Stock Based Compensation (Tables) | 3 Months Ended | |||||||||||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||||||||||||||||
Schedule of Stock Options Activity | ' | |||||||||||||||||||||||||||
A summary of stock option activity for the three months ended March 31, 2014, is as follows: | ||||||||||||||||||||||||||||
Number | Weighted | |||||||||||||||||||||||||||
of Shares | Average | |||||||||||||||||||||||||||
Exercise | ||||||||||||||||||||||||||||
Price | ||||||||||||||||||||||||||||
Balance, January 1, 2014 | 167,607 | $ | 9.49 | |||||||||||||||||||||||||
Options granted | — | $ | — | |||||||||||||||||||||||||
Options exercised | — | $ | — | |||||||||||||||||||||||||
Options forfeited | (49,480 | ) | $ | 8.72 | ||||||||||||||||||||||||
Balance, March 31, 2014 | 118,127 | $ | 9.82 | |||||||||||||||||||||||||
Exercisable, March 31, 2014 | 118,127 | $ | 9.82 | |||||||||||||||||||||||||
Schedule of Stock Option Plans, by Exercise Price Range | ' | |||||||||||||||||||||||||||
Additional information regarding stock options outstanding and exercisable as of March 31, 2014, is as follows: | ||||||||||||||||||||||||||||
Range of | Number | Weighted | Expiration | Weighted | Aggregate | Number | Weighted | Aggregate | ||||||||||||||||||||
Exercise | Outstanding | Average | Date | Average | Intrinsic | Exercisable | Average | Intrinsic | ||||||||||||||||||||
Prices | Remaining | Exercise | Value(1) | Exercise | Value(1) | |||||||||||||||||||||||
Contractual | Price | Price | ||||||||||||||||||||||||||
Life (Years) | ||||||||||||||||||||||||||||
$5.10 | 5,000 | 0.64 | 2014 | $ | 5.1 | $ | 3,650 | 5,000 | $ | 5.1 | $ | 3,650 | ||||||||||||||||
$7.10 - $7.46 | 8,161 | 1.2 | 2014-2015 | 7.36 | — | 8,161 | 7.36 | — | ||||||||||||||||||||
$8.74 | 64,471 | 3.71 | 2014-2018 | 8.74 | — | 64,471 | 8.74 | — | ||||||||||||||||||||
$12.21-$13.00 | 40,495 | 2.57 | 2014-2017 | 12.62 | — | 40,495 | 12.62 | — | ||||||||||||||||||||
118,127 | 3.02 | 2014-2018 | $ | 9.82 | $ | 3,650 | 118,127 | $ | 9.82 | $ | 3,650 | |||||||||||||||||
__________ | ||||||||||||||||||||||||||||
-1 | The aggregate intrinsic value is before applicable income taxes and represents the amount option recipients would have received if all options had been fully vested and exercised on the last trading day of the first three months of 2014, or March 31, 2014, based upon our closing stock price on that date of $5.83. | |||||||||||||||||||||||||||
Schedule of Restricted Stock | ' | |||||||||||||||||||||||||||
A summary of restricted stock unit activity for the three months ended March 31, 2014, is as follows: | ||||||||||||||||||||||||||||
Number | Weighted | |||||||||||||||||||||||||||
of Shares | Average | |||||||||||||||||||||||||||
Grant Date | ||||||||||||||||||||||||||||
Fair Value | ||||||||||||||||||||||||||||
Balance, January 1, 2014 | 303,749 | $ | 7.32 | |||||||||||||||||||||||||
Granted | 52,012 | $ | 5.79 | |||||||||||||||||||||||||
Vested | — | $ | — | |||||||||||||||||||||||||
Forfeited | (41,143 | ) | $ | 7.08 | ||||||||||||||||||||||||
Balance, March 31, 2014 | 314,618 | $ | 7.1 | |||||||||||||||||||||||||
Fair_Value_of_Financial_Instru1
Fair Value of Financial Instruments (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
Fair Value and Carrying Amount | ' | ||||||||||||||||
March 31, 2014 | December 31, 2013 | ||||||||||||||||
Carrying | Fair | Carrying | Fair | ||||||||||||||
Amount | Value | Amount | Value | ||||||||||||||
Financial assets: | |||||||||||||||||
Cash and cash equivalents and restricted cash(1) | $ | 13,515 | $ | 13,515 | $ | 13,058 | $ | 13,058 | |||||||||
Accounts receivable(1) | $ | 6,555 | $ | 6,555 | $ | 6,283 | $ | 6,283 | |||||||||
Notes receivable | $ | 5,088 | $ | 5,088 | $ | 5,095 | $ | 5,095 | |||||||||
Financial liabilities: | |||||||||||||||||
Current liabilities, excluding debt(1) | $ | 19,838 | $ | 19,838 | $ | 16,238 | $ | 16,238 | |||||||||
Total debt | $ | 42,336 | $ | 42,516 | $ | 43,058 | $ | 44,311 | |||||||||
Debentures | $ | 30,825 | $ | 32,058 | $ | 30,825 | $ | 32,058 | |||||||||
__________ | |||||||||||||||||
-1 | Includes the cash, accounts receivable, and current liabilities of discontinued operations held for sale as of March 31, 2014 and December 31, 2013. |
Organization_Details
Organization (Details) | Mar. 31, 2014 | Mar. 31, 2013 |
states | ||
hotels | ||
Business Acquisition [Line Items] | ' | ' |
Number of Total Hotels | 54 | ' |
Number of States Hotels are Located | 10 | ' |
Number of Canadian Provinces Hotels are Located | 1 | ' |
Number of Hotels, Operated | 24 | ' |
Number of Hotels, Wholly Owned | 19 | ' |
Number of Hotels, Leased | 5 | ' |
Number of Hotels, Franchised | 28 | ' |
Equity Method Investment, Percentage | 19.90% | 19.90% |
Red Lion Hotels Capital Trust [Member] | ' | ' |
Business Acquisition [Line Items] | ' | ' |
Interest in Variable Interest Entity | 3.00% | ' |
Leo Hotel Collection [Member] | ' | ' |
Business Acquisition [Line Items] | ' | ' |
Number of Total Hotels | 2 | ' |
Number of Hotel Rooms | 3,256 | ' |
Meeting Space (in square feet) | 241,000 | ' |
Red Lion Hotels and Red Lion Inns & Suites [Member] | ' | ' |
Business Acquisition [Line Items] | ' | ' |
Number of Total Hotels | 52 | ' |
Number of Hotel Rooms | 9,014 | ' |
Meeting Space (in square feet) | 457,222 | ' |
Property_and_Equipment_Details
Property and Equipment (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ' | ' |
Property, plant and equipment, gross | $229,400 | $227,475 |
Less accumulated depreciation | -118,571 | -117,343 |
Property, plant and equipment, net, excluding land and contruction in progress | 110,829 | 110,132 |
Property and equipment, net | 166,252 | 166,356 |
Buildings and Equipment [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, plant and equipment, gross | 189,792 | 188,331 |
Furniture and Fixtures [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, plant and equipment, gross | 32,967 | 32,685 |
Landscaping and Land Improvements [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, plant and equipment, gross | 6,641 | 6,459 |
Land [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, plant and equipment, gross | 48,886 | 48,886 |
Construction in Progress [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, plant and equipment, gross | $6,537 | $7,338 |
Assets_Held_for_Sale_Details
Assets Held for Sale (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ' | ' |
Assets Held for Sale, Gross | $33,846 | $33,842 |
Less accumulated depreciation and amortization | -24,986 | -25,207 |
Assets Held for Sale, Net, Excluding Land and Contruction in Progress | 8,860 | 8,635 |
Assets held for sale | 18,483 | 18,346 |
Buildings and Equipment [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Assets Held for Sale, Gross | 25,360 | 25,367 |
Furniture and Fixtures [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Assets Held for Sale, Gross | 7,342 | 7,337 |
Landscaping and Land Improvements [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Assets Held for Sale, Gross | 1,144 | 1,138 |
Land [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Assets Held for Sale, Gross | 9,478 | 9,478 |
Construction in Progress [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Assets Held for Sale, Gross | $145 | $233 |
Discontinued_Operations_Narrat
Discontinued Operations (Narrative) (Details) (USD $) | 3 Months Ended | 0 Months Ended | |||||
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Apr. 10, 2014 | |||
Eugene Property [Member] | Subsequent Event [Member] | ||||||
Yakima Property [Member] | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' | ' | ' | ||
Assets of Disposal Group, Including Discontinued Operation | $12,732,000 | [1] | ' | $13,285,000 | [2] | $600,000 | ' |
Liabilities of Disposal Group, Including Discontinued Operation | ' | ' | ' | 100,000 | ' | ||
Proceeds from Sale of Property, Plant, and Equipment | $295,000 | $1,846,000 | ' | ' | $3,700,000 | ||
[1] | As of March 31, 2014, the properties included are the Canyon Springs, Pocatello, Kelso and Wenatchee properties. | ||||||
[2] | As of December 31, 2013, the properties included are the Canyon Springs, Pocatello, Kelso, Wenatchee and Eugene properties. |
Discontinued_Operations_Balanc
Discontinued Operations Balance Sheet (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Assets and Liabilities of Discontinued Operations and Disposal Groups [Abstract] | ' | ' | ||
Cash and cash equivalents | $112 | [1] | $105 | [2] |
Accounts receivable, net | 233 | [1] | 337 | [2] |
Inventories | 111 | [1] | 145 | [2] |
Prepaid expenses and other | 75 | [1] | 211 | [2] |
Total current assets | 531 | [1] | 798 | [2] |
Property and equipment, net | 12,201 | [1] | 12,487 | [2] |
Total assets, net | 12,732 | [1] | 13,285 | [2] |
Accounts payable | 77 | [1] | 115 | [2] |
Accrued payroll related benefits | 166 | [1] | 131 | [2] |
Advance deposits | 23 | [1] | 16 | [2] |
Other accrued expense | 351 | [1] | 342 | [2] |
Total current liabilities | $617 | [1] | $604 | [2] |
[1] | As of March 31, 2014, the properties included are the Canyon Springs, Pocatello, Kelso and Wenatchee properties. | |||
[2] | As of December 31, 2013, the properties included are the Canyon Springs, Pocatello, Kelso, Wenatchee and Eugene properties. |
Discontinued_Operations_Income
Discontinued Operations (Income Statement) (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Discontinued Operations and Disposal Groups [Abstract] | ' | ' |
Revenues | $2,311 | $4,223 |
Operating expenses | -2,364 | -3,859 |
Hotel facility and land lease | -30 | -146 |
Depreciation and amortization | 0 | -333 |
Depreciation and amortization | 0 | 50 |
Income (loss) from operations of discontinued business units, net of tax | -83 | -65 |
Loss on disposal and impairment of the assets of discontinued business units | 0 | -70 |
Income tax benefit | 0 | 25 |
Loss on disposal and impairment of the assets of the discontinued business units, net of tax | 0 | -45 |
Income (loss) from discontinued operations | ($83) | ($110) |
Credit_Facility_and_Long_Term_2
Credit Facility and Long Term Debt Long Term Debt Obligations (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Debt Instrument [Line Items] | ' | ' |
Long-term Debt, Current Maturities | $3,000 | $3,000 |
Long-term Debt, Excluding Current Maturities | 39,336 | 40,058 |
Long-term debt and Debentures, less Current Maturities | 70,161 | 70,883 |
Wells Fargo Credit Facility [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term Debt, Current Maturities | 3,000 | 3,000 |
Long-term Debt, Excluding Current Maturities | 39,336 | 40,058 |
Debentures [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term Debt, Current Maturities | 0 | 0 |
Long-term Debt, Excluding Current Maturities | $30,825 | $30,825 |
Credit_Facility_and_Long_Term_3
Credit Facility and Long Term Debt (Wells Fargo Credit Facility) (Details) (USD $) | 3 Months Ended |
Mar. 31, 2014 | |
Debt Instrument [Line Items] | ' |
Number of hotels | 19 |
Term Loan [Member] | ' |
Debt Instrument [Line Items] | ' |
Long-term Debt, net of unamortized origination fees | $42,300,000 |
Long-term debt, balance | 42,800,000 |
Origination fee | 500,000 |
Debt Instrument, Periodic Payment, Principal | 750,000 |
Percent of net proceeds from sale | 50.00% |
Percent of appraised market value of property | 50.00% |
Debt covenant, additional principal payment, maximum | 1,000,000 |
Revolving Credit Facility [Member] | ' |
Debt Instrument [Line Items] | ' |
Line of Credit Facility, Maximum Borrowing Capacity | 10,000,000 |
Line of Credit Facility, Remaining Borrowing Capacity | 9,800,000 |
Letters of Credit Outstanding, Amount | 0 |
Yakima Property [Member] | ' |
Debt Instrument [Line Items] | ' |
Repayments of Long-term Debt | $2,600,000 |
Credit_Facility_and_Long_Term_4
Credit Facility and Long Term Debt (Debentures of Red Lion Hotels Capital Trust) (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 |
Red Lion Hotels Capital Trust [Member] | Parent [Member] | Noncurent Liabilties [Member] | |||
Trust Preferred Securities Subject to Mandatory Redemption [Member] | Trust Preferred Securities Subject to Mandatory Redemption [Member] | Parent [Member] | |||
Variable Interest Entity, Not Primary Beneficiary [Member] | Trust Preferred Securities Subject to Mandatory Redemption [Member] | ||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' |
Proceeds from issuance of trust preferred securities | ' | ' | $46,000,000 | $500,000 | ' |
Redeemable preferred stock, cash distributions percentage | ' | ' | 9.50% | ' | ' |
Payment of financing and stock issuance costs | ' | ' | 2,300,000 | ' | ' |
Interest in Variable Interest Entity | ' | ' | ' | 3.00% | ' |
Variable Interest Entity, Nonconsolidated, Carrying Amount, Assets and Liabilities, Net | ' | ' | ' | 1,400,000 | ' |
Variable Interest Entity, Reporting Entity Involvement, Debenture Percentage | ' | ' | ' | ' | 9.50% |
Financial Instruments Subject to Mandatory Redemption, Settlement Terms, Mandatory Redemption Percentage, Upon Occurrence of Triggering Event | ' | ' | ' | 35.00% | ' |
Financial Instruments Subject to Mandatory Redemption, Settlement Terms, Percentage of Issued Value, Upon Occurrence of Triggering Event | ' | ' | ' | 105.00% | ' |
Financial Instruments Subject to Mandatory Redemption, Settlement Terms, Upon Occurrence of Triggering Event | ' | ' | ' | 50,000,000 | ' |
Payments for Repurchase of Trust Preferred Securities | ' | ' | ' | 16,600,000 | ' |
Financial Instruments Subject to Mandatory Redemption, Preferred Stock and Common Stock Outstanding, Redemption Percentage | ' | ' | ' | 35.00% | ' |
Financial Instruments Subject to Mandatory Redemption, Settlement Terms, Redemption Price Per Share | ' | ' | ' | $26.25 | ' |
Financial Instruments Subject to Mandatory Redemption, Settlement Terms, Redemption Premium Percentage | ' | ' | ' | 5.00% | ' |
Debentures due Red Lion Hotels Capital Trust | $30,825,000 | $30,825,000 | ' | ' | ' |
Derivative_Financial_Instrumen2
Derivative Financial Instruments and Accumulated Other Comprehensive Income (Loss) (Details) (USD $) | 3 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Jun. 30, 2013 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ' | ' |
Percentage of debt hedged by interest rate derivatives | 40.00% | ' | ' |
Derivative Liability, Notional Amount | $17,100,000 | ' | $18,000,000 |
Fixed interest rate | 4.88% | ' | ' |
Derivative liabilities | 200,000 | ' | ' |
Balance, beginning of period | -159,000 | 0 | ' |
Loss on cash flow hedge, net of tax | -1,000 | 0 | ' |
Balance, end of period | ($160,000) | $0 | ' |
Business_Segments_Details
Business Segments (Details) (USD $) | 3 Months Ended | ||||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | ||
segments | |||||
Segment Reporting Information [Line Items] | ' | ' | ' | ||
Number of operating segments | 3 | ' | ' | ||
Revenues | $30,410 | $27,634 | ' | ||
Operating income (loss) | -2,281 | -3,557 | ' | ||
Interest expense | -1,217 | -1,484 | ' | ||
Other income | 93 | 101 | ' | ||
Income tax (expense) benefit | -31 | 1,940 | ' | ||
Income (loss) from continuing operations | -3,436 | -3,000 | ' | ||
Identifiable assets | 234,127 | ' | 234,626 | ||
Hotels [Member] | ' | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ' | ||
Revenues | 23,746 | 22,912 | ' | ||
Operating income (loss) | -933 | -1,657 | ' | ||
Identifiable assets | 193,338 | [1] | ' | 192,225 | [1] |
Franchise [Member] | ' | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ' | ||
Revenues | 1,526 | 1,264 | ' | ||
Operating income (loss) | 62 | -47 | ' | ||
Identifiable assets | 9,725 | ' | 9,348 | ||
Entertainment [Member] | ' | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ' | ||
Revenues | 5,105 | 3,373 | ' | ||
Operating income (loss) | 964 | 310 | ' | ||
Identifiable assets | 5,734 | ' | 6,759 | ||
Other [Member] | ' | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ' | ||
Revenues | 33 | 85 | ' | ||
Operating income (loss) | -2,374 | -2,163 | ' | ||
Identifiable assets | $25,330 | ' | $26,294 | ||
[1] | Includes the identifiable assets of discontinued operations that are classified as held for sale. |
Earnings_Loss_Per_Share_Schedu
Earnings (Loss) Per Share (Schedule of Earnings Per Share) (Details) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Earnings Per Share [Abstract] | ' | ' |
Income (loss) from continuing operations | ($3,436) | ($3,000) |
Income (loss) from discontinued operations | -83 | -110 |
Net income (loss) | ($3,519) | ($3,110) |
Weighted average shares - basic | 19,716 | 19,469 |
Weighted average shares - diluted | 19,716 | 19,469 |
Income (loss) from continuing operations (USD per share) | ($0.17) | ($0.15) |
Income (loss) from discontinued operations (USD per share) | $0 | ($0.01) |
Net income (loss) | ($0.17) | ($0.16) |
Earnings_Loss_Per_Share_Detail
Earnings (Loss) Per Share (Details) | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 |
Stock Options [Member] | Stock Options [Member] | Stock Options [Member] | Restricted Stock Units (RSUs) [Member] | Restricted Stock Units (RSUs) [Member] | Restricted Stock Units (RSUs) [Member] | Stock Options [Member] | Stock Options [Member] | Restricted Stock Units (RSUs) [Member] | Restricted Stock Units (RSUs) [Member] | |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Antidilutive Securities | ' | ' | ' | ' | ' | ' | 118,127 | 169,783 | 314,618 | 308,217 |
Options to purchase | 118,127 | 167,607 | 169,783 | ' | ' | ' | 118,127 | ' | ' | ' |
Other than Options Outstanding | ' | ' | ' | 314,618 | 303,749 | 308,217 | ' | ' | ' | ' |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Income Tax Disclosure [Abstract] | ' | ' |
Effective Tax Rate | -0.85% | 39.20% |
Statutory Tax Rate | 34.00% | 34.00% |
Deferred Tax Assets, Valuation Allowance | $7.20 | ' |
Stock_Based_Compensation_Detai
Stock Based Compensation (Details) (2006 Stock Incentive Plan [Member]) | Mar. 31, 2014 |
2006 Stock Incentive Plan [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Number of shares approved | 2,000,000 |
Number of shares of common stock available for issuance | 653,196 |
Stock_Based_Compensation_Stock
Stock Based Compensation (Stock Options) (Details) (Stock Options [Member], USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Stock Options [Member] | ' | ' |
Number of Shares | ' | ' |
Options outstanding at beginning of period, Options | 167,607 | 169,783 |
Granted, Options | 0 | ' |
Exercised, Options | 0 | ' |
Forfeited, Options | -49,480 | ' |
Options outstanding at end of period, Options | 118,127 | 169,783 |
Exercisable at end of period, Options | 118,127 | ' |
Weighted Average Exercise Price | ' | ' |
Options outstanding at beginning of period, Weighted Average Exercise Price | $9.49 | ' |
Granted, Weighted Average Exercise Price | $0 | ' |
Exercised, Weighted Average Exercise Price | $0 | ' |
Forfeited, Weighted Average Exercise Price | $8.72 | ' |
Options outstanding at end of period, Weighted Average Exercise Price | $9.82 | ' |
Exercisable at end of period, Weighted Average Exercise Price | $9.82 | ' |
Stock_Based_Compensation_Exerc
Stock Based Compensation (Exercise Price Range) (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | |
Share Price | $5.83 | |
Stock Options [Member] | ' | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | |
Number Outstanding | 118,127 | |
Weighted Average Remaining Contractual Life | '3 years 0 months 7 days | |
Weighted Average Exercise Price, Beginning Balance | $9.82 | |
Aggregate Intrinsic Value, Beginning Balance | $3,650 | |
Number of Exercisable Options | 118,127 | |
Weighted Average Exercise Price, Ending Balance | $9.82 | |
Aggregate Intrinsic Value, Ending Balance | 3,650 | [1] |
$5.10 [Member] | Stock Options [Member] | ' | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | |
Exercise Price, Lower Limit | $5.10 | |
Exercise Price, Upper Limit | $5.98 | |
Number Outstanding | 5,000 | |
Weighted Average Remaining Contractual Life | '7 months 20 days | |
Weighted Average Exercise Price, Beginning Balance | $5.10 | |
Aggregate Intrinsic Value, Beginning Balance | 3,650 | |
Number of Exercisable Options | 5,000 | |
Weighted Average Exercise Price, Ending Balance | $5.10 | |
Aggregate Intrinsic Value, Ending Balance | 3,650 | [1] |
$7.10 - $7.46 [Member] | Stock Options [Member] | ' | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | |
Exercise Price, Lower Limit | $7.10 | |
Exercise Price, Upper Limit | $7.46 | |
Number Outstanding | 8,161 | |
Weighted Average Remaining Contractual Life | '1 year 2 months 12 days | |
Weighted Average Exercise Price, Beginning Balance | $7.36 | |
Aggregate Intrinsic Value, Beginning Balance | 0 | |
Number of Exercisable Options | 8,161 | |
Weighted Average Exercise Price, Ending Balance | $7.36 | |
Aggregate Intrinsic Value, Ending Balance | 0 | [1] |
$8.74 [Member] | Stock Options [Member] | ' | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | |
Exercise Price, Lower Limit | $8.74 | |
Exercise Price, Upper Limit | $8.80 | |
Number Outstanding | 64,471 | |
Weighted Average Remaining Contractual Life | '2 months 15 days | |
Weighted Average Exercise Price, Beginning Balance | $8.74 | |
Aggregate Intrinsic Value, Beginning Balance | 0 | |
Number of Exercisable Options | 64,471 | |
Weighted Average Exercise Price, Ending Balance | $8.74 | |
Aggregate Intrinsic Value, Ending Balance | 0 | [1] |
$12.21 - $13.00 [Member] | Stock Options [Member] | ' | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | |
Exercise Price, Lower Limit | $12.21 | |
Exercise Price, Upper Limit | $13 | |
Number Outstanding | 40,495 | |
Weighted Average Remaining Contractual Life | '2 years 6 months 25 days | |
Weighted Average Exercise Price, Beginning Balance | $12.62 | |
Aggregate Intrinsic Value, Beginning Balance | 0 | |
Number of Exercisable Options | 40,495 | |
Weighted Average Exercise Price, Ending Balance | $12.62 | |
Aggregate Intrinsic Value, Ending Balance | $0 | [1] |
[1] | The aggregate intrinsic value is before applicable income taxes and represents the amount option recipients would have received if all options had been fully vested and exercised on the last trading day of the first three months of 2014, or March 31, 2014, based upon our closing stock price on that date of $5.83. |
Stock_Based_Compensation_Restr
Stock Based Compensation (Restricted Stock Units) (Details) (Restricted Stock Units (RSUs) [Member], USD $) | 3 Months Ended | |
In Millions, except Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Restricted Stock Units (RSUs) [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Percentage of total units granted that are forfeited | 20.90% | ' |
Compensation expense | $0.20 | $0.20 |
Additional compensation expense | 1.6 | ' |
Weighted average period | '32 months | ' |
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Current Year Amount to be Recognized | $0.50 | ' |
Number of Shares | ' | ' |
Beginning of period, Shares | 303,749 | ' |
Granted, Shares | 52,012 | ' |
Vested, Shares | 0 | ' |
Forfeited, Shares | -41,143 | ' |
End of period, Shares | 314,618 | 308,217 |
Weighted Average Grant Date Fair Value | ' | ' |
Beginning of the period, Weighted Average Grant Date Fair Value | $7.32 | ' |
Granted, Weighted Average Grant Date Fair Value | $5.79 | ' |
Vested, Weighted Average Grant Date Fair Value | $0 | ' |
Forfeited, Weighted Average Grant Date Fair Value | $7.08 | ' |
End of period, Weighted Average Grant Date Fair Value | $7.10 | ' |
Stock_Based_Compensation_Emplo
Stock Based Compensation (Employee Stock Purchase Plan) (Details) (2008 ESPP [Member], USD $) | 1 Months Ended | 3 Months Ended |
Jan. 31, 2008 | Mar. 31, 2013 | |
2008 ESPP [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Stock authorized for purchase | 300,000 | ' |
Maximum amount employees can purchase | $25,000 | ' |
Maximum number of shares employees can purchase | 10,000 | ' |
Number of shares issued to participants | ' | 7,405 |
Fair_Value_of_Financial_Instru2
Fair Value of Financial Instruments (Details) (USD $) | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | ||||
In Thousands, unless otherwise specified | Carrying Amount [Member] | Carrying Amount [Member] | Fair Value [Member] | Fair Value [Member] | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' | ' | ' | ' | ||||
Cash and cash equivalents and restricted cash | ' | ' | $13,515 | [1] | $13,058 | [1] | $13,515 | [1] | $13,058 | [1] |
Accounts receivable | ' | ' | 6,555 | [1] | 6,283 | [1] | 6,555 | [1] | 6,283 | [1] |
Notes receivable | ' | ' | 5,088 | 5,095 | 5,088 | 5,095 | ||||
Current liabilities, excluding debt | ' | ' | 19,838 | [1] | 16,238 | [1] | 19,838 | [1] | 16,238 | [1] |
Total debt | ' | ' | 42,336 | 43,058 | 42,516 | 44,311 | ||||
Debentures | ' | ' | $30,825 | $30,825 | $32,058 | $32,058 | ||||
Equity Method Investment, Percentage | 19.90% | 19.90% | ' | ' | ' | ' | ||||
[1] | Includes the cash, accounts receivable, and current liabilities of discontinued operations held for sale as of March 31, 2014 and December 31, 2013. |
Commitments_and_Contingencies_
Commitments and Contingencies (Details) (USD $) | Mar. 31, 2014 | Mar. 31, 2013 |
In Millions, unless otherwise specified | ||
Commitments and Contingencies Disclosure [Abstract] | ' | ' |
Equity Method Investment, Percentage | 19.90% | 19.90% |
Guarantor Obligations, Maximum Exposure, Undiscounted | ' | $1.80 |
Guarantor Obligations, Maximum Exposure, Percentage | ' | 19.90% |
Subsequent_Events_Details
Subsequent Events (Details) (USD $) | 3 Months Ended | 0 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Apr. 10, 2014 | Apr. 10, 2014 | |
Yakima Property [Member] | Sale of Kalispell Mall Property [Member] | |||
Subsequent Event [Member] | Subsequent Event [Member] | |||
Subsequent Event [Line Items] | ' | ' | ' | ' |
Proceeds from Sale of Property, Plant, and Equipment | $295,000 | $1,846,000 | $3,700,000 | ' |
Repayments of Long-term Debt | ' | ' | ' | $2,600,000 |