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 SIOUX FALLS, S.D., Nov. 11 /PRNewswire/ -- LodgeNet Entertainment Corporation (NASDAQ-NMS: LNET) today announced earnings results for its third quarter ended Sept. 30, 1993. The company reported total revenue of $8.5 million, an increase of 31 percent over total revenue of $6.5 million in the corresponding period of the prior year. Earnings before interest, taxes, depreciation and amortization (EBITDA) increased 83 percent from $1.2 million in 1992 to $2.2 million this year. Net loss prior to preferred stock dividends declined 49 percent from $(638,000) in 1992 to $(323,000) for the third quarter of 1993. All preferred stock was redeemed or converted to common stock as part of the company's initial public offering in October, 1993.
 "Our improving financial performance is directly related to the growth in our guest pay room base, and in particular, our increasing on- demand room base," said Tim C. Flynn, president and chief executive officer. Total guest pay rooms increased 37 percent, or 34,951 rooms, from Sept. 30, 1992 to Sept. 30, 1993. As of Sept. 30, 1993, the company had 128,296 guest pay rooms, of which 49,475 contained the company's on-demand movie technology. On-demand rooms produced average monthly revenue of $21.38 during the quarter versus a system-wide average monthly revenue of $16.78. As of Sept. 30, 1992, the company had 93,345 total guest pay rooms and 14,582 on-demand rooms.
 For the nine months ended Sept. 30, 1993, total revenues were $23.1 million, an increase of 34 percent over total revenue of $17.2 million in the corresponding nine months of the prior year. EBITDA increased 125 percent from $2.4 million for the first nine months of 1992 to $5.4 million for the same period in 1993. Net loss prior to preferred stock dividends declined 38 percent from $(2.6 million) in 1992 to $(1.6 million) in 1993.
 "We are very pleased with our third quarter and nine month operating results, which were in line with our expectations," said Scott C. Petersen, executive vice president and chief operating officer. "With the continued installation of our on-demand technology, and now, the introduction of network-based Super Nintendo video game systems, we look forward to continued improvement in our financial performance."
 On Oct. 21, 1993 LodgeNet Entertainment Corporation completed an initial public offering of 5,175,000 shares of common stock. The managing underwriters of the offering were Oppenheimer & Co., Inc. and Paine Webber Incorporated.
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 /CONTACT: Tim C. Flynn, president and CEO; or Scott C. Petersen, executive vice president and COO; or James T. Nichols, vice president- finance and treasurer, of LodgeNet Entertainment, 605-330-1330/

CO: LodgeNet Entertainment Corporation ST: South Dakota IN: ENT SU: ERN

DB-AL -- MN019 -- 3365 11/11/93 16:05 EST
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Publication:PR Newswire
Date:Nov 11, 1993

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