Tuesday, 29 January 2013
LODGENET INTERACTIVE CORPORATION
MORE Credit Rating
C
D
CC CCC
B
BB BBB
A
AA AAA
key
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LODGENET INTERACTIVE CORPORATION
Identification number
US460371161
Country
United States of America
ZIP code and city
57107 - SIOUX FALLS
Address
3900, WEST INNOVATION STREET +1 605 988 1000 www.lodgenet.com Not available
Legal form
Not available
Account
Consolidated
Incorporation date
1980
NACE 2 Sector
6020 - Television programming and broadcasting activities
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ASKMORE is the modeFinance product which gives the chance to evaluate the credit risk for every company from all around the world.
ASKMORE
Company name
Listed Status
Active
MORE Credit limit
1,400,000 e
plans 3 types of reports:
Turnover (th e) Rating s-peek
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ASKMORE Basic: This report includes modeFinance ’ s MORE Credit Ratings and MORE Credit Limit to help you in the decision making. It covers all essential information including financial statements of the last three years and descriptive information including trade description and sector analysis. This report type is ideally suited for decisions on transactions with each level of credit risk.
31/12/2010
31/12/2009
325,575
338,225
336,313
CCC
CCC
CCC
16.00%
16.00%
16.00%
100%
100%
100%
-9.02
-9.17
-8.16
0.89
0.89
0.88
Current Ratio
0.81
0.58
0.94
Quick Ratio
0.81
0.58
0.94
Probability of default
Plus
Basic
31/12/2011
Confidence Level
TM
Solvency ratios Leverage ratio Total asset/Total liabilities Liquidity ratios
Profitability and economic equilibrium ratios Return on investement ROI (%)
6.84
5.11
5.65
-12.51
-32.08
-18.69
Asset turnover
1.03
1.02
0.95
Interest paid weight
1.12
1.48
1.33
Gross Profit/Operating revenue
0.43
0.44
0.43
0.97
0.71
0.59
Return on equity ROE (%)
Interest Coverage ratios EBIT interest coverage ratio
Analysis and trend of financial strength
modeFinance Headquarter Building A - AREA Science Park Padriciano 99 - 34149 Trieste - Italy Ph.: +39 040 375 5337 Fax: +39 040 375 6741 info@modefinance.com TM
key askMORETM is a registered mark of modeFinanceTM
MORE Credit Rating
D not available
non return
C
CC
extremly pathological pathological
CCC
B
BB
BBB
A
AA
AAA
high danger
weak
sufficient
adequate
good
very strong
extremely strong
LODGENET INTERACTIVE CORPORATION
Tuesday, 29 January 2013 MORE Credit Rating
D
C
CC CCC
B
BB BBB
A
AA AAA
key
Sector Analysis Company
Healthy
Balanced
Vulnerable
Risky
Solvency ratios Leverage ratio
-9.02
0.40
1.36
2.05
-1.72
Total asset/Total liabilities
0.89
3.47
1.73
1.17
0.78
Current Ratio
0.81
2.54
1.39
0.97
0.65
Quick Ratio
0.81
2.44
1.20
0.92
0.54
Liquidity ratios
Profitability and economic equilibrium ratios Return on investement ROI (%)
6.84
8.95
4.66
0.06
-24.91
-12.51
9.06
5.37
-13.89
-110.40
Asset turnover
1.03
0.85
0.77
0.74
1.06
Interest paid weight
1.12
0.01
0.11
0.00
-0.04
Gross Profit/Operating revenue
0.43
0.50
0.43
0.37
0.17
0.97
141.60
5.72
-0.22
-17.55
Return on equity ROE (%)
Interest Coverage ratios EBIT interest coverage ratio Cash Conversion Cycle (days) Days Sales Of Inventory (DIO)
0
4
8
8
59
Days Sales Outstanding (DSO)
47
67
52
47
77
Days Payable Outstanding (DPO)
42
10
16
29
65
Cash Conversion Cycle (DIO + DSO - DPO)
5
43
40
25
28
Numer of analyzed companies
-
130
230
107
42
CCC
A
BBB
CCC
CC
(Average) Rating
The sector has been chosen according to: international companies in the sector NACE 2 6020 with financial data of year 2011.
modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM
Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741
LODGENET INTERACTIVE CORPORATION
Tuesday, 29 January 2013 MORE Credit Rating
D
C
CC CCC
B
BB BBB
A
key
Sector Analysis - Graphs
modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM
Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741
AA AAA
LODGENET INTERACTIVE CORPORATION
Tuesday, 29 January 2013 MORE Credit Rating
C
D
CC CCC
B
BB BBB
A
AA AAA
key
Balance Sheet BALANCE SHEET (th e)
31/12/2011
31/12/2010
31/12/2009
Accounting practice
Local GAAP
Local GAAP
Local GAAP
0.77286
0.748
0.69416
12
12
12
Total assets
315,845
332,116
352,876
Fixed assets
254,787
279,427
298,798
148,175
148,916
143,081
Tangible fixed assets
92,097
117,374
143,456
Other fixed assets
14,516
13,136
12,261
61,058
52,690
54,079
0
0
0
Debtors
41,706
36,900
35,892
Other current assets
19,352
15,790
18,187
10,835
6,269
11,808
-39,370
-40,653
-49,276
196
188
157
Other shareholders funds
-39,566
-40,842
-49,433
Total liabilities
355,215
372,770
402,152
Non current liabilities
279,930
282,293
344,670
Long term debt
272,745
275,886
321,980
7,184
6,407
22,690
Current liabilities
75,286
90,477
57,482
Loans
8,034
3,596
4,235
Creditors
37,294
45,107
27,794
Other current liabilities
29,957
41,774
25,453
315,845
332,116
352,876
31/12/2011
31/12/2010
31/12/2009
Exchange rate USD - EUR Number of months
Intangible fixed assets
Current assets Stocks
Cash & cash equivalent Shareholders funds Capital
Other non-current liabilities
Total shareh. funds & liab. NET DEBT (th e) Short term debts Long term debt Cash & cash equivalent
8,034
3,596
4,235
272,745
275,886
321,980
10,835
6,269
11,808
269,944
273,213
314,407
31/12/2011
31/12/2010
31/12/2009
Net debt
Working capital
-
-
-
-14,228
-37,787
-3,403
31/12/2011
31/12/2010
Net Current Assets
31/12/2009
Days Sales Of Inventory (DIO)
0
0
0
Days Sales Outstanding (DSO)
47
40
39
Days Payable Outstanding (DPO)
42
49
30
5
-9
9
Cash Conversion Cycle (DIO + DSO - DPO)
modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM
Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741
LODGENET INTERACTIVE CORPORATION
Tuesday, 29 January 2013 MORE Credit Rating
C
D
CC CCC
B
BB BBB
A
AA AAA
key
Income Statement INCOME STATEMENT (th e)
31/12/2011
31/12/2010
31/12/2009
Accounting practice
Local GAAP
Local GAAP
Local GAAP
0.77286
0.748
0.69416
12
12
12
Exchange rate USD - EUR Number of months Sales
325,575
338,225
336,313
-4
1
-
0
0
0
Operating revenue / turnover
325,575
338,225
336,313
Total operating costs
302,094
320,399
320,836
Costs growth (%)
-6
0
-
Service costs
-
-
-
Material costs
-
-
-
Costs of employees
-
-
-
EBITDA
77,968
79,162
83,989
Depreciation
54,486
61,336
68,513
EBIT
23,482
17,826
15,476
-25,996
-25,942
-21,996
Revenues growth (%) Other revenues +/- variation in inventories and contract in progress + Fixed assets own construction capitalized
Financial P/L Financial revenue Financial expenses
-
-
-
25,996
25,942
21,996
24,118
25,086
26,442
P/L before tax
-2,514
-8,117
-6,520
Extr. and other P/L
-4,439
-4,301
-2,162
Extr. and other revenue
-
-
-
Extr. and other expenses
-
-
-
P/L before tax + Extr. and other P/L
-6,953
-12,418
-8,681
Taxation
-2,026
624
530
P/L for period
-4,927
-13,041
-9,211
Interest paid
31/12/2011
31/12/2010
31/12/2009
Costs of Good Sold
184,747
190,943
191,256
Gross Profit
140,829
147,282
145,056
Other Operating Expenses
117,347
129,456
129,580
31/12/2011
31/12/2010
31/12/2009
49,559
48,295
59,302
-
-
-
Cash flow Added value
31/12/2011 Number of employees
963
modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM
31/12/2010 1,049
31/12/2009 1,091
Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741
LODGENET INTERACTIVE CORPORATION
Tuesday, 29 January 2013 MORE Credit Rating
D
C
CC CCC
B
BB BBB
A
key
Evolutions and trends
modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM
Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741
AA AAA
LODGENET INTERACTIVE CORPORATION
Tuesday, 29 January 2013 MORE Credit Rating
D
C
CC CCC
B
BB BBB
A
AA AAA
key
Qualitative information Full overview
The company provides interactive media and connectivity solutions for the hospitality industry in the United States, Canada, and Mexico. It was founded as Satellite Movie Company in 1980 and is headquartered in Sioux Falls, South Dakota. The company’s guest entertainment services include on - demand movies, on - demand games, music and music video, Internet on television, and television on - demand. It also offers satellite - delivered cable television programming; and broadband Internet access, service, and support; and system sales, service, and support solutions. In addition, the company provides various solutions, including the LodgeNetRX interactive patient television system, patient education solutions, clinical systems integration applications, and cable television hardware and programming; and offers professional, technical, and installation services to the healthcare industry. As of December 2009, it provided interactive media and connectivity solutions to approximately 1.9 million hotel rooms; and advertising media services to approximately 1.2 million hotel rooms, as well as served 45 healthcare facilities, representing approximately 9,200 beds. The company is the leading provider of media and connectivity solutions designed to meet the unique needs of hospitality, healthcare and other guest - based businesses.
History
Founded as Satellite Movie Company.
Primary business line
Provides interactive media and connectivity solutions for the hospitality industry.
Secondary business line
Not available.
Main activity
Services.
Secondary activity
Not available.
Main products and services
Interactive media and connectivity solutions.
Size estimate
Leading provider of media and connectivity solutions designed to meet the unique needs of hospitality, healthcare and other guest - based businesses.
Strategy, organization and policy
Not available.
Strategic alliances
Not available.
Membership of a network
Not available.
Main brand names
Not available.
Main domestic country
United States Of America.
Main foreign countries or regions
Not available.
Main production sites
Not available.
Main distribution sites
Not available.
Main sales representation sites
Not available.
Main customers
Not available.
modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM
Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741
LODGENET INTERACTIVE CORPORATION
Tuesday, 29 January 2013 MORE Credit Rating
D
C
CC CCC
B
BB BBB
A
AA AAA
key
Auditor/Advisor/Bank name
type
address
PRICEWATERHOUSECOOPERS LLP
Auditor
-
Computershare Investor Services
Transfer Agent
-
Board name
date of birth
nationality
function
Mr. Mr. Mr. Mr.
-
United States -
Independent Director President, Chief Executive Officer, Director Independent Director Independent Director
-
-
Independent Director Director Lead Independent Director
Martin L Abbott Richard L Battista J. Scott Kirby Thomas N Matlack
Mrs. Vikki I Pachera Mr. Scott C Petersen Mr. Scott H Shlecter
Sharehoders (the first twenty shareholders ordered by Direct %) Rating:
PAR CAPITAL MANAGEMENT INC via its funds Country ISO code NACE Rev. 2, Core code
US -
Operating Revenue (MIL $) Total Assets (MIL $)
Direct % Total % Address : Not available
5.70
Number of Employees Information date
US 3.60 -
Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees Information date
US
Operating Revenue (MIL $)
0 2012/10
Rating:
CUBAN MARK Country ISO code NACE Rev. 2, Core code Direct % Total %
0 4.69
2012/09
Address : Not available
Rating:
MITTLEMAN BROTHERS LLC via its funds Country ISO code NACE Rev. 2, Core code Direct % Total % Address : Not available
3.56
Total Assets (MIL $) Number of Employees Information date
modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM
0.16 3 2012/06
Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741
LODGENET INTERACTIVE CORPORATION
Tuesday, 29 January 2013 MORE Credit Rating
D
C
CC CCC
B
BB BBB
A
AA AAA
key
Rating:
D. E. SHAW INVESTMENTS, L.P. via its funds Country ISO code NACE Rev. 2, Core code Direct % Total % Address : Not available
US 3.24
Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees Information date
MAST CREDIT OPPORTUNITIES I MASTER FUND LTD
Rating:
Country ISO code
Operating Revenue (MIL $)
NACE Rev. 2, Core code Direct % Total % Address : Not available
US 2.90 -
119.33 24014.19 159 2012/06
-
Total Assets (MIL $) Number of Employees Information date
0 2012/11
PENN CAPITAL MANAGEMENT CO INC. via its funds
Rating:
Country ISO code NACE Rev. 2, Core code Direct % Total %
US 2.60
Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees Information date
US
Operating Revenue (MIL $)
10.7 62 2012/06
Address : Not available
Rating:
MAST CAPITAL MANAGEMENT LLC via its funds Country ISO code NACE Rev. 2, Core code Direct % Total % Address : Not available
2.47
0.65
Total Assets (MIL $) Number of Employees Information date
10 2012/11
Rating:
MANULIFE FINANCIAL CORP via its funds Country ISO code NACE Rev. 2, Core code Direct %
CA -
Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees
Total % Address : Not available
2.15
Information date
2012/06
Rating:
BB
US 1.58
Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees Information date
9081 179896 10100 2012/06
Country ISO code NACE Rev. 2, Core code
US -
Operating Revenue (MIL $) Total Assets (MIL $)
28811 923225
Direct % Total % Address : Not available
1.33
Number of Employees Information date
33300 2012/06
BLACKROCK, INC. via its funds Country ISO code NACE Rev. 2, Core code Direct % Total % Address : Not available
23430.74 452597.28 26400
Rating:
GOLDMAN SACHS GROUP, INC via its funds
modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM
Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741
LODGENET INTERACTIVE CORPORATION
Tuesday, 29 January 2013 MORE Credit Rating
D
C
CC CCC
B
BB BBB
A
AA AAA
key
Rating:
VANGUARD GROUP, INC. THE via its funds Country ISO code NACE Rev. 2, Core code Direct % Total % Address : Not available
US 1.24
Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees Information date
US
Operating Revenue (MIL $)
Rating:
PETERSEN SCOTT C. Country ISO code NACE Rev. 2, Core code Direct % Total % Address : Not available
-
1.21 -
Total Assets (MIL $) Number of Employees Information date
KY 1.20 -
Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees Information date
2012/04
Rating:
A
US
Operating Revenue (MIL $)
36.72
Rating:
MAST OC I MASTER FUND LP Country ISO code NACE Rev. 2, Core code Direct % Total %
2017.7 1830.07 9500 2012/06
0 2012/11
Address : Not available
DIMENSIONAL FUND ADVISORS LP via its funds Country ISO code NACE Rev. 2, Core code Direct % Total % Address : Not available
0.91
Total Assets (MIL $) Number of Employees Information date
2186.66 260 2012/06
Rating:
UBS AG via its funds Country ISO code NACE Rev. 2, Core code Direct %
CH -
Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees
10970.68 36693
Total % Address : Not available
0.70
Information date
2012/06
US 0.51
Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees Information date
Country ISO code NACE Rev. 2, Core code
US -
Operating Revenue (MIL $) Total Assets (MIL $)
Direct % Total % Address : Not available
0.48
Rating:
STATE OF CALIFORNIA via its funds Country ISO code NACE Rev. 2, Core code Direct % Total % Address : Not available
2012/06
Rating:
ALGERT COLDIRON INVESTORS, LLC via its funds
Number of Employees Information date
modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM
2.1 20 2012/06
Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741
LODGENET INTERACTIVE CORPORATION
Tuesday, 29 January 2013 MORE Credit Rating
D
C
CC CCC
B
BB BBB
A
AA AAA
key
Rating:
BENNETT JAMES DONALD via its funds Country ISO code NACE Rev. 2, Core code Direct % Total % Address : Not available
US 0.38
Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees Information date
US
Operating Revenue (MIL $)
Rating:
PORTER ORLIN LLC via its funds Country ISO code NACE Rev. 2, Core code Direct % Total % Address : Not available
2012/06
0.37
Total Assets (MIL $) Number of Employees Information date
NORTHWESTERN MUTUAL LIFE INSURANCE COMPANY (THE) via its funds
Rating:
Country ISO code NACE Rev. 2, Core code Direct % Total %
Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees Information date
US 0.24
0 2012/06
15457 189645 0 2012/09
Address : Not available
Subsidiaries (the first twenty subsidiaries ordered by Direct %) Rating:
HOTEL DIGITAL NETWORK INC Country ISO code NACE Rev. 2, Core code Direct % Total %
US MO
Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees
-
Information date
Total %
US MO
Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees
-
Information date
Total %
CA MO
Total %
2011/12
Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees
-
Information date
2011/12
Rating:
LODGENET INTERNATIONAL Country ISO code NACE Rev. 2, Core code Direct %
-
Rating:
LODGENET INTERACTIVE CANADA CORPORATION Country ISO code NACE Rev. 2, Core code Direct %
2011/12
Rating:
LODGENET HEALTHCARE, INC. Country ISO code NACE Rev. 2, Core code Direct %
-
US MO
Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees
-
Information date
modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM
2011/12
Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741
LODGENET INTERACTIVE CORPORATION
Tuesday, 29 January 2013 MORE Credit Rating
D
C
CC CCC
B
BB BBB
A
AA AAA
key
Rating:
LODGENET STAYONLINE, INC. Country ISO code NACE Rev. 2, Core code Direct % Total %
US MO -
Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees Information date
US MO -
Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees Information date
US MO -
Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees Information date
US MO -
Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees Information date
US MO -
Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees Information date
US MO -
Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees Information date
US MO -
Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees Information date
US MO -
Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees Information date
Rating:
ON COMMAND CORP Country ISO code NACE Rev. 2, Core code Direct % Total %
0.71 7 2012/07
Rating:
VIRGIN ISLANDS VEC Country ISO code NACE Rev. 2, Core code Direct % Total %
2011/12
Rating:
STAYONLINE INCORPORATED Country ISO code NACE Rev. 2, Core code Direct % Total %
43.9 1000 2012/07
Rating:
SPECTRADYNE INTERNATIONAL INC Country ISO code NACE Rev. 2, Core code Direct % Total %
2011/12
Rating:
RESNET COMMUNICATIONS, INC. Country ISO code NACE Rev. 2, Core code Direct % Total %
2011/12
Rating:
PUERTO RICO VEC Country ISO code NACE Rev. 2, Core code Direct % Total %
238.4 396.48 620 2011/12
Rating:
ON COMMAND VIDEO CORPORATION Country ISO code NACE Rev. 2, Core code Direct % Total %
0 2 2011/12
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Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741
2011/12
LODGENET INTERACTIVE CORPORATION
Tuesday, 29 January 2013 MORE Credit Rating
D
C
CC CCC
B
BB BBB
A
AA AAA
key
ASKMORE rating guide General vision
A credit rating is an opinion of the general creditworthiness of an obligor (issuer rating), or the creditworthiness of an obligor in respect of a specific debt security, or other financial obligation (issue rating), based on relevant risk factors. The Multi Objective Rating Evaluation (MORE) model is essentially used to assess the level of distress of industrial companies by using data included in financial statements. The basic idea of the model is to analyze a set of financial and economic ratios in a predictive corporate bankruptcy model with the purpose of creating a fundamental credit rating model for each industrial sector. Results of the model are obtained by applying newly developed numerical methodologies, drawing together financial theory, data mining and engineering design methodologies. The heart of MORE is a multi dimensional and multi objective algorithm that produces a classification of each company, by taking into account any attributes (such as sector and country) characterizing a firm. The model gives the opportunity to assign a rating to a company even without considering a complete data analysis and allows to process quality information. It induces a better understanding of a company’s strength and weakness thanks to sophisticated data mining tools and taking into account the analyst knowledge. The MORE rating vision is to look at the fundamental economics of the company. The main idea is to evaluate the rating observing every aspect of the economical and financial behavior of the company: better is the equilibrium between the different aspects, better will be the final rating. This is done studying, evaluating and aggregating the most important sections of the financial and economic behavior of a company such as: profitability, liquidity, solvency, interest coverage and efficiency.
modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM
Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741
LODGENET INTERACTIVE CORPORATION
Tuesday, 29 January 2013 MORE Credit Rating
D
C
CC CCC
B
BB BBB
A
AA AAA
key
Rating scale Rating class
Rating macro class
The company’s capacity to meet its financial commitments is extremely strong. The company shows an excellent
AAA
AA
Assessment
economic and financial flow and fund equilibrium. Healthy
The company has very strong creditworthiness. It also has a good capital structure and economic and financial equilibrium. Difference from AAA is slight. The company has a high solvency. The company is however more susceptible to the adverse effects of changes in
A
circumstances and economic conditions than companies in higher rated categories. Capital structure and economic equilibrium are considered adequate. The company’s capacity to meet its financial commitments could be affected by serious unfavourable events.
BBB Balanced
A company rated BB is more vulnerable than companies rated BBB. Furthermore the company faces major ongoing uncertainties or exposure to adverse business, financial, or economic conditions.
BB
The company presents vulnerable signals with regards to its fundamentals. Adverse business, financial, or economic
B
conditions will be likely to impair the company’s capacity or willingness to meet its financial commitments. Vulnerable
CCC
A company rated CCC has a dangerous disequilibrium on the capital structure and on its economic and financial fundamentals. Adverse market events and an inadequate management could affect with high probability the company’s solvency.
CC
The company shows signals of high vulnerability. In the event of adverse market and economic conditions, the company’s strong disequilibrium could increase. Risky
C
The company shows considerable pathological situations. commitments is very low.
D
The company has not any longer the capacity to meet its financial commitments.
modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM
The company’s capacity to meet its financial
Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741
LODGENET INTERACTIVE CORPORATION
Tuesday, 29 January 2013 MORE Credit Rating
D
C
CC CCC
B
BB BBB
A
AA AAA
key
Fundamental Credit Rating Ratios Analysis area
Ratio
Assessment This measures the level of total liabilities of the company in comparison
Leverage ratio
with equity.
Solvency ratios
Financial ratios
Assets to debt
This indicates company’s solvency. The company shows a level of deficit when the value of this ratio is under one unit.
Fixed Assets coverage ratio
This is calculated only for holdings. It measures the capital structure i.e. whether a company covers the fixed assets with long term capital.
Current ratio
This measures whether a company has sufficient short-term assets to cover its short-term liabilities.
Liquidity ratios This compares current liabilities only to those assets that can be readily
Quick ratio
turned into cash.
Return on Investement(ROI)
This measures the profitability of company investments without regard to the way the investment is financed.
Return on Equity(ROE)
This measures the profitability of the equity.
Asset turnover
This indicates the investments turnover with regards to sales. The level assumed from the ratio depends on the sector in which the company operates.
Profit margin
This indicates the profitability of sales.
Interest Paid coverage
This indicate the ability of the company to cover interest expenses through the economic margins (Gross profit and EBIT) and through the cash flow from operating activities.
Profitability and economic ratios
Interest coverage ratio
modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM
Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741
LODGENET INTERACTIVE CORPORATION
Tuesday, 29 January 2013 MORE Credit Rating
D
C
CC CCC
B
BB BBB
A
AA AAA
key
MORE Credit Limit, Probability of default and Confidence Level MORE Credit Limit
MORE Credit limit is the estimation of the amount of maximum credit that is possible to assign on a commercial relationship with the analyzed company with an outlook of one year. modeFinance used the following values associated with the company analyzed while computing the credit limit:
• Size; • Years in Business; • Average number of suppliers; • Liquidity of the company and the comparison with its sector; • The funds dedicated to be paid to suppliers; • The likelihood that a company may pay its debts in the next 12 months (MORE Ratings).
The credit limit in this report is merely a suggested value of commercial credit limit calculated on the basis of annual public data. This value should be reviewed by paying attention to the Confidence Level value and by using other information such as other business information, news... etc; and private information such as the relationship with client, history of payments, guarantees and the knowledge of the sector.
Probability of default e Confidence Level
In addition to the MORE Rating, modeFinance also estimates the probability of default and provides a level of confidence. The probability of default is the degree of certainty (in quantitative terms) that the company will go into default. As the probability of default is strongly affected by the economic climate that the company is operating in, companies in the same MORE class will not necessarily have the same probability of default. The MORE model can produce a MORE rating even if there is missing data by using an associated confidence level:
Confidence =
P Available Information P Total Information
The level of confidence does not indicate financial confidence in the company. It is a reflection of the variations in availability of financial data across Europe due to filing regulations and suggests the degree of financial detail the MORE rating is able to take into account for each company. For companies with fully populated records a confidence level of 100% would be applied: companies where no financial data is provided, 0%. This puts the MORE rating in a context for the user and aids interpretation.
modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM
Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741
LODGENET INTERACTIVE CORPORATION
Tuesday, 29 January 2013 MORE Credit Rating
D
C
CC CCC
B
BB BBB
A
AA AAA
key
Notes and disclaimer NOTES
modeFinance has based the present analysis on the company available financial statements, coming from one or more of the following sources: local providers, Commercial Register (Companies House), websites, modeFinance’s database etc.
DISCLAIMER
All Rights Reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission of the publisher modeFinance. The facts of this report are believed to be correct at the time of publication but cannot be guaranteed. Please note that the findings, conclusions and recommendations that modeFinance delivers will be based on information gathered in good faith from both primary and secondary sources, whose accuracy we are not always in a position to guarantee. As such modeFinance can accept no liability whatever for actions taken based on any information that may subsequently prove to be incorrect.
Contacts
Info web
modeFinance MORE rating AREA Science Park 34149 Trieste, via Padriciano 99 - ITALY info@modefinance.com www.modefinance.com
Phone
+39 040 3755337
Company Products Where
modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM
Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741