DELAWARE | 001-36400 | 46-5292553 | ||
(State or other jurisdiction of incorporation or organization) | (Commission File Number) | (IRS employer identification number) | ||
14185 Dallas Parkway, Suite 1100 | ||||
Dallas, Texas | 75254 | |||
(Address of principal executive offices) | (Zip code) |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Exhibit Number | Description | |
99.1 | Second Quarter 2016 Earnings Press Release of the Company, dated August 4, 2016. |
Dated: August 4, 2016 | ||
ASHFORD INC. | ||
By: | /s/ DERIC S. EUBANKS | |
Deric S. Eubanks | ||
Chief Financial Officer |
Contact: | Deric Eubanks | Jordan Jennings | Marilynn Meek | |||
Chief Financial Officer | Investor Relations | Financial Relations Board | ||||
(972) 490-9600 | (972) 778-9487 | (212) 827-3773 |
• | High-growth, fee-based, low-capex business model |
• | Diversified platform of multiple fee generators |
• | Highly-aligned management team with superior long-term track record |
• | Leader in asset and investment management for the real estate & hospitality sectors |
• | Proposed business combination with Remington Holdings, LP (“Remington”) will create the only public, pure-play provider of asset and property management services to the lodging industry |
• | Total revenue for the second quarter of 2016 was $18.2 million |
• | Adjusted EBITDA for the second quarter was $3.2 million |
• | Adjusted net income for the second quarter was $3.9 million, or $1.69 per diluted share |
• | At the end of the second quarter 2016, the Company had approximately $6.1 billion of assets under management |
• | As of June 30, 2016, the Company had corporate cash of $25.0 million |
• | In the second quarter, Trust completed the sale of a 5-hotel, 1,396-room portfolio of select-service hotels for $142 million in cash ($102,000 per key). |
• | During the quarter, Trust also announced that it had entered into a definitive agreement to sell the 151-room Courtyard Palm Desert and the 130-room Residence Inn Palm Desert for $36 million (128,000 per key). |
• | Subsequent to quarter end, on July 6, 2016, Trust announced it had priced its underwritten public offering of 4,800,000 shares of 7.375% Series F Cumulative Preferred Stock at $25.00 per share. The closing of the offering occurred in July. |
• | Subsequent to quarter end, on July 8, 2016, the Company announced that it intends to redeem all of its issued and outstanding shares of 9.00% Series E Cumulative Preferred Stock. The redemption date is August 8, 2016. |
• | Subsequent to quarter end, on July 5, 2016, Prime announced that it completed the sale of the 250-room Courtyard Seattle Downtown/Lake Union for $84.5 million in cash ($338,000 per key). |
• | Since its announcement of a $50 million stock repurchase program on April 8, 2016, Prime has repurchased approximately 2.9 million shares for an aggregate value of $39 million. This repurchase activity represents |
June 30, | December 31, | ||||||
2016 | 2015 | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 86,432 | $ | 50,272 | |||
Restricted cash | 11,348 | 5,684 | |||||
Investments in securities | 3,147 | 81,072 | |||||
Prepaid expenses and other | 1,377 | 1,909 | |||||
Receivables | 168 | 250 | |||||
Due from Ashford Trust OP, net | 3,336 | 5,856 | |||||
Due from Ashford Prime OP, net | 3,805 | 3,821 | |||||
Total current assets | 109,613 | 148,864 | |||||
Investments in unconsolidated entities | 500 | 3,335 | |||||
Furniture, fixtures and equipment, net | 8,756 | 6,550 | |||||
Deferred tax assets | 3,443 | 4,242 | |||||
Other assets | 4,000 | 4,000 | |||||
Total assets | $ | 126,312 | $ | 166,991 | |||
LIABILITIES AND EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable and accrued expenses | $ | 6,442 | $ | 10,447 | |||
Due to affiliates | 3,709 | 782 | |||||
Liabilities associated with investments in securities | 3,019 | 983 | |||||
Other liabilities | 11,348 | 5,684 | |||||
Total current liabilities | 24,518 | 17,896 | |||||
Accrued expenses | 188 | 385 | |||||
Deferred income | 2,381 | 629 | |||||
Deferred compensation plan | 10,521 | 11,205 | |||||
Total liabilities | 37,608 | 30,115 | |||||
Redeemable noncontrolling interests in Ashford LLC | 225 | 240 | |||||
Redeemable noncontrolling interests in subsidiary common stock | 1,042 | — | |||||
Equity: | |||||||
Preferred stock, $0.01 par value, 50,000,000 shares authorized: | |||||||
Series A cumulative preferred stock, no shares issued and outstanding at June 30, 2016 and December 31, 2015 | — | — | |||||
Common stock, $0.01 par value, 100,000,000 shares authorized, 2,016,353 and 2,010,808 shares issued and 2,015,599 and 2,010,569 shares outstanding at June 30, 2016 and December 31, 2015, respectively | 20 | 20 | |||||
Additional paid-in capital | 235,067 | 234,716 | |||||
Accumulated deficit | (202,668 | ) | (202,546 | ) | |||
Treasury stock, at cost, 754 shares and 239 shares at June 30, 2016 and December 31, 2015, respectively | (45 | ) | (25 | ) | |||
Total stockholders’ equity of the Company | 32,374 | 32,165 | |||||
Noncontrolling interests in consolidated entities | 55,063 | 104,471 | |||||
Total equity | 87,437 | 136,636 | |||||
Total liabilities and equity | $ | 126,312 | $ | 166,991 |
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
REVENUE | |||||||||||||||
Advisory services: | |||||||||||||||
Base advisory fee | $ | 10,932 | $ | 10,668 | $ | 21,497 | $ | 20,884 | |||||||
Incentive advisory fee | 413 | — | 732 | — | |||||||||||
Reimbursable expenses | 2,276 | 2,227 | 4,430 | 4,294 | |||||||||||
Non-cash stock/unit-based compensation | 4,447 | 1,594 | 4,734 | 2,234 | |||||||||||
Other | 84 | — | 168 | 195 | |||||||||||
Total revenue | 18,152 | 14,489 | 31,561 | 27,607 | |||||||||||
EXPENSES | |||||||||||||||
Salaries and benefits | 8,717 | 721 | 14,691 | 12,326 | |||||||||||
Non-cash stock/unit-based compensation | 7,517 | 5,217 | 10,751 | 11,105 | |||||||||||
Depreciation | 272 | 399 | 544 | 528 | |||||||||||
General and administrative | 3,838 | 4,292 | 8,279 | 8,422 | |||||||||||
Total operating expenses | 20,344 | 10,629 | 34,265 | 32,381 | |||||||||||
OPERATING INCOME (LOSS) | (2,192 | ) | 3,860 | (2,704 | ) | (4,774 | ) | ||||||||
Realized gain (loss) on investment in unconsolidated entity | — | — | (3,601 | ) | — | ||||||||||
Unrealized gain (loss) on investment in unconsolidated entity | — | (1,066 | ) | 2,141 | (1,066 | ) | |||||||||
Interest income | 10 | 51 | 23 | 52 | |||||||||||
Dividend income | 33 | 166 | 46 | 172 | |||||||||||
Unrealized gain (loss) on investments | (234 | ) | (3,037 | ) | 895 | (2,990 | ) | ||||||||
Realized gain (loss) on investments | 470 | 1,037 | (6,343 | ) | 1,035 | ||||||||||
Other expense | (21 | ) | (10 | ) | (149 | ) | (10 | ) | |||||||
INCOME (LOSS) BEFORE INCOME TAXES | (1,934 | ) | 1,001 | (9,692 | ) | (7,581 | ) | ||||||||
Income tax benefit (expense) | 655 | (233 | ) | 15 | (464 | ) | |||||||||
NET INCOME (LOSS) | (1,279 | ) | 768 | (9,677 | ) | (8,045 | ) | ||||||||
(Income) loss from consolidated entities attributable to noncontrolling interests | (182 | ) | 3,154 | 6,366 | 4,115 | ||||||||||
Net (income) loss attributable to redeemable noncontrolling interests in Ashford LLC | 4 | (8 | ) | 7 | 10 | ||||||||||
Net (income) loss attributable to redeemable noncontrolling interests in subsidiary common stock | 351 | — | 466 | — | |||||||||||
NET INCOME (LOSS) ATTRIBUTABLE TO THE COMPANY | $ | (1,106 | ) | $ | 3,914 | $ | (2,838 | ) | $ | (3,920 | ) | ||||
INCOME (LOSS) PER SHARE - BASIC AND DILUTED | |||||||||||||||
Basic: | |||||||||||||||
Net income (loss) attributable to common stockholders | $ | (0.55 | ) | $ | 1.97 | $ | (1.41 | ) | $ | (1.97 | ) | ||||
Weighted average common shares outstanding - basic | 2,011 | 1,985 | 2,010 | 1,989 | |||||||||||
Diluted: | |||||||||||||||
Net loss attributable to common stockholders | $ | (0.71 | ) | $ | (1.26 | ) | $ | (1.85 | ) | $ | (2.43 | ) | |||
Weighted average common shares outstanding - diluted | 2,048 | 2,197 | 2,152 | 2,201 |
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Net income (loss) | $ | (1,279 | ) | $ | 768 | $ | (9,677 | ) | $ | (8,045 | ) | ||||
(Income) loss from consolidated entities attributable to noncontrolling interests | (182 | ) | 3,154 | 6,366 | 4,115 | ||||||||||
Net (income) loss attributable to redeemable noncontrolling interests in Ashford LLC | 4 | (8 | ) | 7 | 10 | ||||||||||
Net (income) loss attributable to redeemable noncontrolling interests in subsidiary common stock | 351 | — | 466 | — | |||||||||||
Net income (loss) attributable to the Company | (1,106 | ) | 3,914 | (2,838 | ) | (3,920 | ) | ||||||||
Depreciation | 269 | 399 | 536 | 528 | |||||||||||
Income tax expense (benefit) | (655 | ) | 233 | (15 | ) | 464 | |||||||||
Realized and unrealized loss on unconsolidated entity (net of noncontrolling interest) | — | 640 | 1,328 | 640 | |||||||||||
Net income (loss) attributable to redeemable noncontrolling interests in Ashford LLC | (4 | ) | 8 | (7 | ) | (10 | ) | ||||||||
EBITDA | (1,496 | ) | 5,194 | (996 | ) | (2,298 | ) | ||||||||
Equity-based compensation | 3,070 | 3,623 | 6,017 | 8,871 | |||||||||||
Market change in deferred compensation plan | 928 | (6,679 | ) | (684 | ) | (1,423 | ) | ||||||||
Transaction costs | 487 | 835 | 870 | 1,370 | |||||||||||
Software implementation costs | 110 | — | 904 | — | |||||||||||
Dead deal costs | 52 | — | 63 | — | |||||||||||
Unrealized gain on derivatives | 56 | — | 47 | — | |||||||||||
Adjusted EBITDA | $ | 3,207 | $ | 2,973 | $ | 6,221 | $ | 6,520 |
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Net income (loss) | $ | (1,279 | ) | $ | 768 | $ | (9,677 | ) | $ | (8,045 | ) | ||||
(Income) loss from consolidated entities attributable to noncontrolling interests | (182 | ) | 3,154 | 6,366 | 4,115 | ||||||||||
Net (income) loss attributable to redeemable noncontrolling interests in Ashford LLC | 4 | (8 | ) | 7 | 10 | ||||||||||
Net (income) loss attributable to redeemable noncontrolling interests in subsidiary common stock | 351 | — | 466 | — | |||||||||||
Net income (loss) attributable to common stockholders | (1,106 | ) | 3,914 | (2,838 | ) | (3,920 | ) | ||||||||
Depreciation | 269 | 399 | 536 | 528 | |||||||||||
Net income (loss) attributable to redeemable noncontrolling interests in Ashford LLC | (4 | ) | 8 | (7 | ) | (10 | ) | ||||||||
Equity-based compensation | 3,070 | 3,623 | 6,017 | 8,871 | |||||||||||
Realized and unrealized loss on unconsolidated entity (net of noncontrolling interest) | — | 640 | 1,328 | 640 | |||||||||||
Market change in deferred compensation plan | 928 | (6,679 | ) | (684 | ) | (1,423 | ) | ||||||||
Transaction costs | 487 | 835 | 870 | 1,370 | |||||||||||
Software implementation costs | 110 | — | 904 | — | |||||||||||
Dead deal costs | 52 | — | 63 | — | |||||||||||
Unrealized gain on derivatives | 56 | — | 47 | — | |||||||||||
Adjusted net income | $ | 3,862 | $ | 2,740 | $ | 6,236 | $ | 6,056 | |||||||
Adjusted net income per diluted share available to common stockholders | $ | 1.69 | $ | 1.22 | $ | 2.74 | $ | 2.66 | |||||||
Weighted average diluted shares | 2,285 | 2,240 | 2,275 | 2,273 |
U(3OJ&<5"!'5HN=0Q=M:M
MO3DG+Q$VVCR\NAF^6K(YQJX^7HVB,+%*6'C'_5G#L,?$;?)T\J:UVIF'YIGH
M>9026>"%YJGJ38Z=#0H\&WQ2X4!\(7(%"WA9!1B-0QB9.!O\9 O_.+E,.O$1
MG_+G/!_M]155CF)C>U![]KF$<=Z.@X %_5*TF+2HEQYS1O\ZHU2_SWY^NC]&
M>7U=OQAWP5A,M@DG7(?5?=JN^R6#&WB7S1B4$U ;&V9NKR7M&',?(D>X>5&!W40:)8
M/,'_@3,X!F&11VZ#A%UNQXNU 8M!03=;%#L8U!#@=T^_0Q:F:%@>IGL+XHNI
M:$UA(8P^,37MA2>B&&;"DB&YB&4[A$2YYXM^Y4O_88T[45Y;-SC'F%V5@UJG
M07Z>Q5(@U8W?^"3"(BS]97
4E/JH&-['$QN$7,31'N/F.":Y4&LX53-)5=5(&K I6^=5F1MQ< (6*[7%
M)[O&;'U!EFGH0K-5G6D)+__2.!P)$>EVE8KTG1X50@M".?G0FT1W7%ST,*=1
M6$=&6=#%&=HY$2<26JR%$PLW=E1F1U )>-[EE-Z1CY
M*R+$=('R>&S8)\3%GP\CG^MSFID)9D4I$B=2;VE"