Diluted Earnings Per Share was $0.29, a 26.1% increase compared to diluted EPS of $0.23 in thethird quarter of 2001. During the quarter, total revenue increased 64.5%, from $33.8 million in the third quarter of 2001 to $55.7 million in the same period of 2002, while EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) increased 18.8% to $12.0 million.
During the quarter, the company reports total hotel and restaurant revenues increased$22.3 million, or 79.0%, from $28.2 million in the third quarter of 2001, to$50.5 million in the comparable period of 2002.
Revenue was positively impacted by the acquisition of Red Lion Hotels in December 2001. Combined hotel RevPAR (hotels owned, managed, or franchised for greater than one yearby WestCoast Hospitality Corporation and Red Lion Hotels, Inc.) declined 4.0% during the period, from $56.35 in the third quarter of 2001, to $54.07 in 2002. RevPAR trends returned to positive year on year comparisons upon the anniversary of Sept. 11. RevPAR during the month of September increased 6.3% at all company-owned hotels and through the first three weeks of October, RevPAR increased 9.3% compared to the first three weeks of October 2001.WestCoast expects the positive RevPAR comparisons to continue through theremainder of the fourth quarter.
Margin decreases in the hotel division resulted primarily from the acquisition of Red Lion Hotels, which included 12 hotels controlled through operating leases, which are expensed anddeducted prior to EBITDA and affect ratios when compared to owned hotels.
Subsequent to the close of the third quarter, GlobeSt.com reported that WestCoast announced the potential sale of the WestCoast Kalispell Hotel in connection with the sale of the company- owned Kalispell Center Mall, in Kalispell, Mont. The company will retain management of the hotel portion of the project and the hotel will continue to be branded by WestCoast.
Second, the company announced the re-branding of more than 20 WestCoast Hotels to the Red Lion Hotels brand. The re-branding will increase the number of Red Lion hotels to more than any other time in the history of the brand, at 65 hotels.
As of early afternoon Wednesday, WestCoast shares were trading for $5.28, up from its 52-week low of $4.90 and down from its 52-week high of $8.08.
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