EXHIBIT 99.1
 | NEWS RELEASE | |||||||||||||||||||
| Contact: | Deric Eubanks | Jordan Jennings | Joe Calabrese | |||||||||||||||||
| Chief Financial Officer | Investor Relations | Financial Relations Board | ||||||||||||||||||
| (972) 490-9600 | (972) 778-9487 | (212) 827-3772 | ||||||||||||||||||
ASHFORD REPORTS FIRST QUARTER 2024 RESULTS
DALLAS, May 8, 2024 - Ashford Inc., an alternative asset management company with a portfolio of strategic operating businesses (NYSE American: AINC) (“Ashford” or the “Company”), today reported the following results and performance measures for the first quarter ended March 31, 2024. Unless otherwise stated, all reported results compare the first quarter ended March 31, 2024, with the first quarter ended March 31, 2023 (see discussion below). The reconciliation of non-GAAP financial measures is included in the financial tables accompanying this press release.
FIRST QUARTER 2024 FINANCIAL HIGHLIGHTS
•Net loss attributable to common stockholders for the quarter was $(7.6) million, or $(2.43) per diluted share. Adjusted net income for the quarter was $18.2 million, or $1.99 per diluted share.
•Total revenue, excluding cost reimbursement revenue, for the quarter was $94.8 million.
•Adjusted EBITDA for the quarter was $23.1 million.
•At the end of the first quarter, the Company had approximately $7.5 billion of gross assets under management.
•As of March 31, 2024, the Company had cash and cash equivalents of approximately $52.4 million.
ASHFORD’S BOARD OF DIRECTORS APPROVES PLAN TO TERMINATE REGISTRATION OF ITS COMMON STOCK
Subsequent to the end of the first quarter, the Company announced that a Special Committee of independent and disinterested directors has recommended, and its Board of Directors has approved, a plan to terminate the registration of the Company’s common stock under the federal securities laws following the completion of a proposed reverse stock split transaction immediately followed by a forward stock split transaction and to delist its shares of common stock from trading on the NYSE American LLC (the “Proposed Transaction”). It is expected that this plan would be initiated in the summer of 2024, subject to Ashford’s stockholders approving the Proposed Transaction at a Special Meeting of Stockholders to be held for that purpose.
Ashford is taking these steps to avoid the substantial cost and expense of being a public reporting company and to focus the Company’s resources on enhancing long-term stockholder value. The Company anticipates savings exceeding $2.5 million on an annual basis as a result of the Proposed Transaction.
Ashford Reports First Quarter Results
Page 2
May 8, 2024
ASHFORD SECURITIES UPDATE
Ashford Securities is a dedicated capital raising platform created to fund investment opportunities sponsored and asset-managed by Ashford. Ashford Securities currently has three offerings in the market: (1) an income oriented non-traded preferred equity security for Ashford Hospitality Trust, Inc. (“Ashford Trust”) (NYSE: AHT), (2) a growth oriented private offering targeting investments in all types of commercial real estate in the state of Texas (“Texas Strategic Growth Fund”), and (3) a growth and income focused private NAV REIT focused on owning a diversified portfolio of hotels and resorts across all chain scales (“Stirling Hotels & Resorts”).
Ashford Trust has issued $122 million of its Series J and Series K Redeemable Preferred Stock through Ashford Securities since the offering commenced, including $23 million during the first quarter. In connection with the Ashford Trust offering of Series J & K Redeemable Preferred Stock, Ashford Securities has assembled a syndicate of 43 broker-dealers and RIA firms.
Additionally, to date, Ashford Securities has raised $14.7 million of capital for the Texas Strategic Growth Fund, which comprises $2.5 million from Ashford Inc. and $12.2 million from other investors. The proceeds from Ashford’s investment, along with other funds raised, were used to make an equity investment in a multi-family property located in San Antonio, TX.
REMINGTON UPDATE
In the first quarter, Remington generated hotel management fee revenue of $12.5 million, Net Income Attributable to the Company of $1.1 million, and Adjusted EBITDA of $4.1 million.
Remington continues to focus on growing its mix of third-party managed hotels, which currently account for approximately 44% of Remington’s managed hotels. At the end of the first quarter, Remington managed 121 properties that were open and operating – 53 under third-party management agreements and 68 for Ashford Trust and Braemar – located in 25 states, Washington, D.C. and Costa Rica across 27 brands, including 15 independent and boutique properties.
INSPIRE UPDATE
INSPIRE is an event technology company that provides an integrated suite of audio-visual services, including show and event services, hospitality services, and creative services, making it a leading single-source solution for its clients’ meeting and event needs. In the first quarter, INSPIRE had audio visual revenue of $44.9 million, Net Income Attributable to the Company of $1.8 million, and Adjusted EBITDA of $6.5 million.
PREMIER UPDATE
Premier provides comprehensive and cost-effective architecture, design, development, and project management services. It also provides project oversight, coordination, planning, and execution of renovation, capital expenditure and ground-up development projects. Premier is responsible for managing and implementing substantially all capital improvements at Ashford Trust and Braemar hotels. Additionally, it has extensive experience working with major hotel brands in renovating, converting, developing and repositioning hotels. Similar to Remington, Premier has also made a concerted effort to grow its third-party business, and during the first quarter, Premier signed 10 third-party engagements, totaling $1.7 million in expected fees. In the first quarter, Premier generated $9.4 million of design and construction fee revenue, Net Income Attributable to the Company of $2.3 million, and Adjusted EBITDA of $5.6 million.
Ashford Reports First Quarter Results
Page 3
May 8, 2024
RED HOSPITALITY & LEISURE UPDATE
RED Hospitality is a leading provider of watersports activities and other travel and transportation services in the U.S. Virgin Islands (“USVI”), Puerto Rico, Florida and Turks & Caicos. RED Hospitality has continued to benefit from the resurgence in leisure travel and the desire of consumers for unique and memorable experiences. RED Hospitality has several opportunities for expansion into additional Ashford-advised and third-party hotels in the USVI, elsewhere in the Caribbean, and in U.S. coastal markets. During the first quarter, RED Hospitality generated $11.2 million of revenue, Net Income Attributable to the Company of $0.5 million, and $2.3 million of Adjusted EBITDA.
FINANCIAL RESULTS
Net loss attributable to common stockholders for the quarter totaled $(7.6) million, or $(2.43) per diluted share. Adjusted net income for the quarter was $18.2 million, or $1.99 per diluted share.
For the quarter ended March 31, 2024, base advisory fee revenue was $11.5 million. The base advisory fee revenue in the first quarter was comprised of $8.2 million from Ashford Trust and $3.3 million from Braemar.
Adjusted EBITDA for the quarter was $23.1 million.
CAPITAL STRUCTURE
At the end of the first quarter, the Company had approximately $7.5 billion of gross assets under management from its advised platforms. The Company had cash and cash equivalents of $52.4 million and 9.1 million fully diluted shares. The Company’s fully diluted shares include 4.3 million common shares associated with its Series D convertible preferred stock. The Company had $143.7 million of loans as of March 31, 2024.
QUARTERLY HIGHLIGHTS FOR ADVISED PLATFORMS
ASHFORD TRUST HIGHLIGHTS
•Reported Adjusted EBITDAre of $59.5 million for the first quarter.
•First quarter Comparable RevPAR decreased 0.9% over the prior year quarter.
•During the quarter, Ashford Trust provided an update on its plan to pay off its strategic financing which has a final maturity date in January 2026. This plan includes raising sufficient capital through a combination of asset sales, mortgage debt refinancings, and non-traded preferred capital raising.
•During the quarter, Ashford Trust closed on the sale of the 144-room Residence Inn located in Salt Lake City, Utah for $19.2 million.
•Subsequent to quarter end, Ashford Trust closed on the sale of the 390-room Hilton Boston Back Bay in Boston, Massachusetts for $171 million.
•Subsequent to quarter end, Ashford Trust closed on the sale of the 85-room Hampton Inn in Lawrenceville, Georgia for $8.1 million.
•To date, Ashford Trust has issued approximately $122 million of its non-traded preferred stock.
BRAEMAR HOTELS & RESORTS HIGHLIGHTS
•Reported Adjusted EBITDAre of $66.2 million for the first quarter.
•First quarter Comparable RevPAR was $368.
•During the quarter, Braemar extended its mortgage loan secured by the Pier House Resort & Spa.
•During the quarter, Braemar extended its mortgage loan secured by the Ritz-Carlton St. Thomas.
•During the quarter, Braemar received a six-month forbearance, through August 5, 2024, on its mortgage loan secured by the Hilton La Jolla Torry Pines.
Ashford Reports First Quarter Results
Page 4
May 8, 2024
•Subsequent to quarter end, Braemar paid off its mortgage loan secured by the Cameo Beverly Hills.
•Subsequent to quarter end, Braemar announced that it had signed a definitive agreement to sell the Hilton La Jolla Torrey Pines.
TEXAS STRATEGIC GROWTH FUND HIGHLIGHTS
•Including the Company’s $2.5 million investment, to date, the fund has raised approximately $14.7 million of gross capital.
STIRLING HOTELS & RESORTS HIGHLIGHTS
•Offering is now effective for all share classes.
INVESTOR CONFERENCE CALL CANCELLED
The Company also announced today that it will no longer hold its first quarter conference call originally scheduled for May 9, 2024.
Included in this press release are certain supplemental measures of performance, which are not measures of operating performance under GAAP, to assist investors in evaluating the Company’s historical or future financial performance. These supplemental measures include adjusted earnings before interest, tax, depreciation and amortization (“Adjusted EBITDA”) and Adjusted Net Income. We believe that Adjusted EBITDA and Adjusted Net Income provide investors and management with a meaningful indicator of operating performance. Management also uses Adjusted EBITDA and Adjusted Net Income, among other measures, to evaluate profitability. We calculate Adjusted EBITDA by subtracting or adding to net income (loss): interest expense, income taxes, depreciation, amortization, net income (loss) to noncontrolling interests, transaction costs, and other expenses. We calculate Adjusted Net Income by subtracting or adding to net income (loss): net income (loss) to noncontrolling interests, transaction costs, and other expenses. Our methodology for calculating Adjusted EBITDA and Adjusted Net Income may differ from the methodologies used by other comparable companies, when calculating the same or similar supplemental financial measures and may not be comparable with these companies. Neither Adjusted EBITDA nor Adjusted Net Income represents cash generated from operating activities as determined by GAAP and should not be considered as an alternative to (a) GAAP net income (loss) as an indication of our financial performance or (b) GAAP cash flows from operating activities as a measure of our liquidity nor are such measures indicative of funds available to satisfy our cash needs. The Company urges investors to carefully review the U.S. GAAP financial information as shown in our periodic reports on Form 10-Q and Form 10-K, as amended, and our Current Reports on Form 8-K.
This press release does not constitute an offer to sell or a solicitation of an offer to buy any securities. Securities will be offered only by means of a registration statement and prospectus which can be found at www.sec.gov.
* * * * *
Ashford is an alternative asset management company with a portfolio of strategic operating businesses that provides global asset management, investment management and related services to the real estate and hospitality sectors.
Certain statements and assumptions in this press release contain or are based upon “forward-looking” information and are being made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements in this press release include, among others, statements about the Company’s strategy and future plans. These forward-looking statements are subject to risks and uncertainties. When we use the words “will likely result,” “may,” “anticipate,” “estimate,” “should,” “expect,” “believe,” “intend,” or similar expressions, we intend to identify forward-looking statements. Such statements are subject to numerous assumptions and uncertainties, many of which are outside Ashford Inc.’s control.
Ashford Reports First Quarter Results
Page 5
May 8, 2024
These forward-looking statements are subject to known and unknown risks and uncertainties, which could cause actual results to differ materially from those anticipated, including, without limitation: our ability to maintain compliance with NYSE American LLC continued listing standards; our ability to consummate the Proposed Transaction; our ability to regain Form S-3 eligibility; our ability to repay, refinance or restructure our debt and the debt of certain of our subsidiaries; anticipated or expected purchases or sales of assets; our projected operating results; completion of any pending transactions; our understanding of our competition; market trends; projected capital expenditures; the impact of technology on our operations and business; general volatility of the capital markets and the market price of our common stock; availability, terms and deployment of capital; availability of qualified personnel; changes in our industry and the markets in which we operate, interest rates or the general economy; and the degree and nature of our competition. These and other risk factors are more fully discussed in the Company’s filings with the Securities and Exchange Commission.
The forward-looking statements included in this press release are only made as of the date of this press release. Such forward-looking statements are based on our beliefs, assumptions, and expectations of our future performance taking into account all information currently known to us. These beliefs, assumptions, and expectations can change as a result of many potential events or factors, not all of which are known to us. If a change occurs, our business, financial condition, liquidity, results of operations, plans, and other objectives may vary materially from those expressed in our forward-looking statements. You should carefully consider this risk when you make an investment decision concerning our securities. Investors should not place undue reliance on these forward-looking statements. The Company can give no assurance that these forward-looking statements will be attained or that any deviation will not occur. We are not obligated to publicly update or revise any forward-looking statements, whether as a result of new information, future events or circumstances, changes in expectations, or otherwise, except to the extent required by law.
ASHFORD INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(unaudited, in thousands, except share and per share amounts)
| March 31, 2024 | December 31, 2023 | ||||||||||
| ASSETS | |||||||||||
| Current assets: | |||||||||||
| Cash and cash equivalents | $ | 52,364 | $ | 52,054 | |||||||
| Restricted cash | 14,961 | 23,216 | |||||||||
| Restricted investment | 109 | 128 | |||||||||
Accounts receivable, net of allowance of $2,141 and $2,090, respectively | 34,469 | 26,945 | |||||||||
| Due from affiliates | — | 41 | |||||||||
| Due from Ashford Trust | 11,475 | 18,933 | |||||||||
| Due from Braemar | 5,993 | 714 | |||||||||
| Inventories | 2,545 | 2,481 | |||||||||
| Prepaid expenses and other | 16,395 | 16,418 | |||||||||
| Total current assets | 138,311 | 140,930 | |||||||||
Investments | 9,301 | 9,265 | |||||||||
| Property and equipment, net | 57,454 | 56,852 | |||||||||
| Operating lease right-of-use assets | 20,844 | 21,193 | |||||||||
Deferred tax assets, net | 4,240 | 4,358 | |||||||||
| Goodwill | 61,013 | 61,013 | |||||||||
| Intangible assets, net | 204,569 | 210,095 | |||||||||
| Other assets, net | 1,339 | 1,101 | |||||||||
| Total assets | $ | 497,071 | $ | 504,807 | |||||||
| LIABILITIES | |||||||||||
| Current liabilities: | |||||||||||
| Accounts payable and accrued expenses | $ | 37,006 | $ | 54,837 | |||||||
| Dividends payable | 37,881 | 28,508 | |||||||||
| Due to affiliates | 789 | — | |||||||||
| Deferred income | 10,234 | 11,963 | |||||||||
| Notes payable, net | 4,358 | 4,387 | |||||||||
| Finance lease liabilities | 382 | 437 | |||||||||
| Operating lease liabilities | 4,339 | 4,160 | |||||||||
| Claims liabilities and other | 31,331 | 31,112 | |||||||||
| Total current liabilities | 126,320 | 135,404 | |||||||||
| Deferred income | 8,683 | 6,415 | |||||||||
| Deferred tax liability, net | 31,015 | 29,517 | |||||||||
| Deferred compensation plan | 613 | 891 | |||||||||
| Notes payable, net | 135,474 | 132,579 | |||||||||
| Finance lease liabilities | 2,778 | 2,832 | |||||||||
| Operating lease liabilities | 18,546 | 19,174 | |||||||||
| Other liabilities | 2,628 | 2,590 | |||||||||
| Total liabilities | 326,057 | 329,402 | |||||||||
| MEZZANINE EQUITY | |||||||||||
Series D Convertible Preferred Stock, $0.001 par value, 19,120,000 shares issued and outstanding as of March 31, 2024 and December 31, 2023 | 478,000 | 478,000 | |||||||||
| Redeemable noncontrolling interests | 1,999 | 1,972 | |||||||||
| EQUITY (DEFICIT) | |||||||||||
Common stock, 100,000,000 shares authorized, $0.001 par value, 3,560,279 and 3,317,786 shares issued and 3,430,643 and 3,212,312 shares outstanding at March 31, 2024 and December 31, 2023, respectively | 4 | 3 | |||||||||
| Additional paid-in capital | 298,764 | 299,304 | |||||||||
| Accumulated deficit | (616,927) | (609,312) | |||||||||
| Accumulated other comprehensive income (loss) | (160) | (213) | |||||||||
Treasury stock, at cost, 129,636 and 105,474 shares at March 31, 2024 and December 31, 2023, respectively | (1,411) | (1,354) | |||||||||
| Total equity (deficit) of the Company | (319,730) | (311,572) | |||||||||
| Noncontrolling interests in consolidated entities | 10,745 | 7,005 | |||||||||
| Total equity (deficit) | (308,985) | (304,567) | |||||||||
| Total liabilities, mezzanine equity and equity (deficit) | $ | 497,071 | $ | 504,807 | |||||||
6
ASHFORD INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited, in thousands, except per share amounts)
| Three Months Ended | |||||||||||
| March 31, | |||||||||||
| 2024 | 2023 | ||||||||||
REVENUES: | |||||||||||
| Advisory services fees: | |||||||||||
| Base advisory fees | $ | 11,547 | $ | 12,108 | |||||||
| Incentive advisory fees | 67 | 67 | |||||||||
| Other advisory revenue | 130 | 128 | |||||||||
| Hotel management fees: | |||||||||||
| Base management fees | 8,948 | 9,010 | |||||||||
| Incentive management fees | 1,456 | 982 | |||||||||
| Other management fees | 2,066 | 2,195 | |||||||||
| Design and construction fees | 9,447 | 6,929 | |||||||||
| Audio visual | 44,912 | 40,357 | |||||||||
| Other | 16,251 | 9,074 | |||||||||
| Cost reimbursement revenue | 114,310 | 104,272 | |||||||||
| Total revenues | 209,134 | 185,122 | |||||||||
EXPENSES: | |||||||||||
| Salaries and benefits | 22,221 | 22,304 | |||||||||
| Stock/unit-based compensation | 457 | 489 | |||||||||
| Cost of revenues for design and construction | 2,030 | 2,866 | |||||||||
| Cost of revenues for audio visual | 30,882 | 27,828 | |||||||||
| Depreciation and amortization | 6,381 | 7,000 | |||||||||
| General and administrative | 16,843 | 9,692 | |||||||||
| Other | 8,923 | 6,102 | |||||||||
| Reimbursed expenses | 114,377 | 104,198 | |||||||||
| Total operating expenses | 202,114 | 180,479 | |||||||||
| OPERATING INCOME (LOSS) | 7,020 | 4,643 | |||||||||
| Equity in earnings (loss) of unconsolidated entities | 36 | (459) | |||||||||
| Interest expense | (4,156) | (2,837) | |||||||||
| Amortization of loan costs | (276) | (241) | |||||||||
| Interest income | 692 | 277 | |||||||||
| Realized gain (loss) on investments | — | (80) | |||||||||
| Other income (expense) | 545 | 493 | |||||||||
| INCOME (LOSS) BEFORE INCOME TAXES | 3,861 | 1,796 | |||||||||
| Income tax (expense) benefit | (2,346) | (620) | |||||||||
| NET INCOME (LOSS) | 1,515 | 1,176 | |||||||||
| Net (income) loss from consolidated entities attributable to noncontrolling interests | 171 | 288 | |||||||||
| Net (income) loss attributable to redeemable noncontrolling interests | (92) | (155) | |||||||||
| NET INCOME (LOSS) ATTRIBUTABLE TO THE COMPANY | 1,594 | 1,309 | |||||||||
| Preferred dividends, declared and undeclared | (9,202) | (9,034) | |||||||||
| NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS | $ | (7,608) | $ | (7,725) | |||||||
| INCOME (LOSS) PER SHARE - BASIC AND DILUTED | |||||||||||
| Basic: | |||||||||||
| Net income (loss) attributable to common stockholders | $ | (2.43) | $ | (2.59) | |||||||
| Weighted average common shares outstanding - basic | 3,134 | 2,984 | |||||||||
| Diluted: | |||||||||||
| Net income (loss) attributable to common stockholders | $ | (2.43) | $ | (2.59) | |||||||
| Weighted average common shares outstanding - diluted | 3,160 | 2,984 | |||||||||
7
ASHFORD INC. AND SUBSIDIARIES
RECONCILIATION OF NET INCOME (LOSS) TO EBITDA AND ADJUSTED EBITDA
(unaudited, in thousands)
| Three Months Ended | |||||||||||
| March 31, | |||||||||||
| 2024 | 2023 | ||||||||||
| Net income (loss) | $ | 1,515 | $ | 1,176 | |||||||
| Net (income) loss from consolidated entities attributable to noncontrolling interests | 171 | 288 | |||||||||
| Net (income) loss attributable to redeemable noncontrolling interests | (92) | (155) | |||||||||
| Net income (loss) attributable to the company | 1,594 | 1,309 | |||||||||
| Interest expense | 4,163 | 2,835 | |||||||||
| Amortization of loan costs | 276 | 241 | |||||||||
| Depreciation and amortization | 8,515 | 8,532 | |||||||||
| Income tax expense (benefit) | 2,346 | 620 | |||||||||
| Net income (loss) attributable to unitholders redeemable noncontrolling interests | 92 | 155 | |||||||||
| EBITDA | 16,986 | 13,692 | |||||||||
| Deferred compensation plans | (278) | (220) | |||||||||
| Stock/unit-based compensation | 449 | 487 | |||||||||
| Change in contingent consideration fair value | (50) | 780 | |||||||||
| Transaction costs | 4,733 | 203 | |||||||||
| Loss on disposal of assets | 15 | 1,017 | |||||||||
| Reimbursed software costs, net | — | (74) | |||||||||
| Legal, advisory and settlement costs | 145 | 291 | |||||||||
| Severance and executive recruiting costs | 700 | 1,143 | |||||||||
| Amortization of hotel signing fees and lock subsidies | 391 | 240 | |||||||||
| Other (gain) loss | (18) | 53 | |||||||||
| Adjusted EBITDA | $ | 23,073 | $ | 17,612 | |||||||
8
ASHFORD INC. AND SUBSIDIARIES
RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED NET INCOME (LOSS)
(unaudited, in thousands, except per share amounts)
| Three Months Ended | |||||||||||
| March 31, | |||||||||||
| 2024 | 2023 | ||||||||||
| Net income (loss) | $ | 1,515 | $ | 1,176 | |||||||
| Net (income) loss from consolidated entities attributable to noncontrolling interests | 171 | 288 | |||||||||
| Net (income) loss attributable to redeemable noncontrolling interests | (92) | (155) | |||||||||
| Preferred dividends, declared and undeclared | (9,202) | (9,034) | |||||||||
| Net income (loss) attributable to common stockholders | (7,608) | (7,725) | |||||||||
| Amortization of loan costs | 276 | 241 | |||||||||
| Depreciation and amortization | 8,515 | 8,532 | |||||||||
| Net income (loss) attributable to unitholders redeemable noncontrolling interests | 92 | 155 | |||||||||
| Preferred dividends, declared and undeclared | 9,202 | 9,034 | |||||||||
| Deferred compensation plans | (278) | (220) | |||||||||
| Stock/unit-based compensation | 449 | 487 | |||||||||
| Change in contingent consideration fair value | (50) | 780 | |||||||||
| Transaction costs | 4,733 | 203 | |||||||||
| Loss on disposal of assets | 15 | 1,017 | |||||||||
| Reimbursed software costs, net | — | (74) | |||||||||
| Legal, advisory and settlement costs | 145 | 291 | |||||||||
| Severance and executive recruiting costs | 700 | 1,143 | |||||||||
| Amortization of hotel signing fees and lock subsidies | 391 | 240 | |||||||||
| Other (gain) loss | (18) | 53 | |||||||||
| GAAP income tax expense (benefit) | 2,346 | 620 | |||||||||
Adjusted income tax (expense) benefit (1) | (730) | (1,407) | |||||||||
| Adjusted net income available to common stockholders, unitholders and Series D convertible preferred stockholders on an "as converted" basis | $ | 18,180 | $ | 13,370 | |||||||
| Adjusted net income per diluted share available to common stockholders, unitholders and Series D convertible preferred stockholders on an "as converted" basis | $ | 1.99 | $ | 1.67 | |||||||
| Weighted average diluted shares | 9,132 | 7,997 | |||||||||
| Components of weighted average diluted shares | |||||||||||
| Common shares | 3,134 | 2,984 | |||||||||
| Series D convertible preferred stock | 4,314 | 4,226 | |||||||||
| Deferred compensation plan | 272 | 208 | |||||||||
| Acquisition related shares | 1,284 | 453 | |||||||||
| Restricted shares and units | 128 | 126 | |||||||||
| Weighted average diluted shares | 9,132 | 7,997 | |||||||||
| Reconciliation of income tax expense (benefit) to adjusted income tax (expense) benefit | |||||||||||
| GAAP income tax (expense) benefit | $ | (2,346) | $ | (620) | |||||||
| Less deferred income tax (expense) benefit | (1,616) | 787 | |||||||||
Adjusted income tax (expense) benefit (1) | $ | (730) | $ | (1,407) | |||||||
(1) Income tax expense (benefit) is adjusted to exclude the effects of deferred income tax expense (benefit) because current income tax expense (benefit) (i) provides a more accurate period-over-period comparison of the ongoing operating performance of our advisory and products and services businesses, and (ii) provides more useful information to investors regarding our economic performance. See Note 18 to our consolidated financial statements in our Annual Report on Form 10-K for the year ended December 31, 2023.
9
ASHFORD INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS AND
RECONCILIATION OF NET INCOME (LOSS) TO EBITDA, ADJUSTED EBITDA AND ADJUSTED NET INCOME (LOSS) BY SEGMENT
(unaudited, in thousands, except per share amounts)
| Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||
Advisory | Products & Services | Corporate/ Other | Ashford Inc. Consolidated | Advisory | Products & Services | Corporate/ Other | Ashford Inc. Consolidated | ||||||||||||||||||||||||||||||||||||||||
| REVENUES: | |||||||||||||||||||||||||||||||||||||||||||||||
| Advisory services fees: | |||||||||||||||||||||||||||||||||||||||||||||||
| Base advisory fees - Trust | $ | 8,221 | $ | — | $ | — | $ | 8,221 | $ | 8,468 | $ | — | $ | — | $ | 8,468 | |||||||||||||||||||||||||||||||
| Base advisory fees - Braemar | 3,326 | — | — | 3,326 | 3,640 | — | — | 3,640 | |||||||||||||||||||||||||||||||||||||||
| Incentive advisory fees - Braemar | 67 | — | — | 67 | 67 | — | — | 67 | |||||||||||||||||||||||||||||||||||||||
| Other advisory revenue - Braemar | 130 | — | — | 130 | 128 | — | — | 128 | |||||||||||||||||||||||||||||||||||||||
| Hotel management fees: | |||||||||||||||||||||||||||||||||||||||||||||||
| Base management fees | — | 8,948 | — | 8,948 | — | 9,010 | — | 9,010 | |||||||||||||||||||||||||||||||||||||||
| Incentive management fees | — | 1,456 | — | 1,456 | — | 982 | — | 982 | |||||||||||||||||||||||||||||||||||||||
| Other management fees | — | 2,066 | — | 2,066 | — | 2,195 | — | 2,195 | |||||||||||||||||||||||||||||||||||||||
| Design and construction fees | — | 9,447 | — | 9,447 | — | 6,929 | — | 6,929 | |||||||||||||||||||||||||||||||||||||||
| Audio visual | — | 44,912 | — | 44,912 | — | 40,357 | — | 40,357 | |||||||||||||||||||||||||||||||||||||||
| Other | 37 | 16,214 | — | 16,251 | 127 | 8,947 | — | 9,074 | |||||||||||||||||||||||||||||||||||||||
| Cost reimbursement revenue | 9,468 | 105,006 | (164) | 114,310 | 8,451 | 92,194 | 3,627 | 104,272 | |||||||||||||||||||||||||||||||||||||||
| Total revenues | 21,249 | 188,049 | (164) | 209,134 | 20,881 | 160,614 | 3,627 | 185,122 | |||||||||||||||||||||||||||||||||||||||
| EXPENSES: | |||||||||||||||||||||||||||||||||||||||||||||||
| Salaries and benefits | — | 14,721 | 7,778 | 22,499 | — | 12,889 | 9,635 | 22,524 | |||||||||||||||||||||||||||||||||||||||
| Deferred compensation plans | — | — | (278) | (278) | — | 13 | (233) | (220) | |||||||||||||||||||||||||||||||||||||||
| Stock/unit-based compensation | — | 44 | 413 | 457 | — | 70 | 419 | 489 | |||||||||||||||||||||||||||||||||||||||
| Cost of audio visual revenues | — | 30,882 | — | 30,882 | — | 27,828 | — | 27,828 | |||||||||||||||||||||||||||||||||||||||
| Cost of design and construction revenues | — | 2,030 | — | 2,030 | — | 2,866 | — | 2,866 | |||||||||||||||||||||||||||||||||||||||
| Depreciation and amortization | 131 | 6,215 | 35 | 6,381 | 516 | 6,412 | 72 | 7,000 | |||||||||||||||||||||||||||||||||||||||
| General and administrative | — | 10,517 | 6,326 | 16,843 | — | 7,901 | 1,791 | 9,692 | |||||||||||||||||||||||||||||||||||||||
| Other | — | 8,923 | — | 8,923 | 1,032 | 5,070 | — | 6,102 | |||||||||||||||||||||||||||||||||||||||
| Reimbursed expenses | 7,831 | 104,983 | (104) | 112,710 | 4,800 | 92,136 | 3,627 | 100,563 | |||||||||||||||||||||||||||||||||||||||
| REIT stock/unit-based compensation | 1,644 | 23 | — | 1,667 | 3,577 | 58 | — | 3,635 | |||||||||||||||||||||||||||||||||||||||
| Total operating expenses | 9,606 | 178,338 | 14,170 | 202,114 | 9,925 | 155,243 | 15,311 | 180,479 | |||||||||||||||||||||||||||||||||||||||
| OPERATING INCOME (LOSS) | 11,643 | 9,711 | (14,334) | 7,020 | 10,956 | 5,371 | (11,684) | 4,643 | |||||||||||||||||||||||||||||||||||||||
| Other | — | (108) | (3,051) | (3,159) | — | (618) | (2,229) | (2,847) | |||||||||||||||||||||||||||||||||||||||
| INCOME (LOSS) BEFORE INCOME TAXES | 11,643 | 9,603 | (17,385) | 3,861 | 10,956 | 4,753 | (13,913) | 1,796 | |||||||||||||||||||||||||||||||||||||||
| Income tax (expense) benefit | (2,931) | (3,454) | 4,039 | (2,346) | (2,562) | (2,844) | 4,786 | (620) | |||||||||||||||||||||||||||||||||||||||
| NET INCOME (LOSS) | 8,712 | 6,149 | (13,346) | 1,515 | 8,394 | 1,909 | (9,127) | 1,176 | |||||||||||||||||||||||||||||||||||||||
| Net (income) loss from consolidated entities attributable to noncontrolling interests | — | 168 | 3 | 171 | — | 288 | — | 288 | |||||||||||||||||||||||||||||||||||||||
| Net (income) loss attributable to redeemable noncontrolling interests | — | — | (92) | (92) | — | — | (155) | (155) | |||||||||||||||||||||||||||||||||||||||
| NET INCOME (LOSS) ATTRIBUTABLE TO THE COMPANY | 8,712 | 6,317 | (13,435) | 1,594 | 8,394 | 2,197 | (9,282) | 1,309 | |||||||||||||||||||||||||||||||||||||||
| Preferred dividends, declared and undeclared | — | — | (9,202) | (9,202) | — | — | (9,034) | (9,034) | |||||||||||||||||||||||||||||||||||||||
| NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS | $ | 8,712 | $ | 6,317 | $ | (22,637) | $ | (7,608) | $ | 8,394 | $ | 2,197 | $ | (18,316) | $ | (7,725) | |||||||||||||||||||||||||||||||
| (Continued) | |||||||||||||||||||||||||||||||||||||||||||||||
10
ASHFORD INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS AND
RECONCILIATION OF NET INCOME (LOSS) TO EBITDA, ADJUSTED EBITDA AND ADJUSTED NET INCOME (LOSS) BY SEGMENT
(unaudited, in thousands, except per share amounts) (continued)
| Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||
Advisory | Products & Services | Corporate/ Other | Ashford Inc. Consolidated | Advisory | Products & Services | Corporate/ Other | Ashford Inc. Consolidated | ||||||||||||||||||||||||||||||||||||||||
| NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS | $ | 8,712 | $ | 6,317 | $ | (22,637) | $ | (7,608) | $ | 8,394 | $ | 2,197 | $ | (18,316) | $ | (7,725) | |||||||||||||||||||||||||||||||
| Preferred dividends, declared and undeclared | — | — | 9,202 | 9,202 | — | — | 9,034 | 9,034 | |||||||||||||||||||||||||||||||||||||||
| NET INCOME (LOSS) ATTRIBUTABLE TO THE COMPANY | 8,712 | 6,317 | (13,435) | 1,594 | 8,394 | 2,197 | (9,282) | 1,309 | |||||||||||||||||||||||||||||||||||||||
| Interest expense | — | 935 | 3,228 | 4,163 | — | 575 | 2,260 | 2,835 | |||||||||||||||||||||||||||||||||||||||
| Amortization of loan costs | — | 14 | 262 | 276 | — | 46 | 195 | 241 | |||||||||||||||||||||||||||||||||||||||
| Depreciation and amortization | 131 | 8,349 | 35 | 8,515 | 516 | 7,944 | 72 | 8,532 | |||||||||||||||||||||||||||||||||||||||
| Income tax expense (benefit) | 2,931 | 3,454 | (4,039) | 2,346 | 2,562 | 2,844 | (4,786) | 620 | |||||||||||||||||||||||||||||||||||||||
| Net income (loss) attributable to unitholders redeemable noncontrolling interests | — | — | 92 | 92 | — | — | 155 | 155 | |||||||||||||||||||||||||||||||||||||||
| EBITDA | 11,774 | 19,069 | (13,857) | 16,986 | 11,472 | 13,606 | (11,386) | 13,692 | |||||||||||||||||||||||||||||||||||||||
| Deferred compensation plans | — | — | (278) | (278) | — | 13 | (233) | (220) | |||||||||||||||||||||||||||||||||||||||
| Stock/unit-based compensation | — | 45 | 404 | 449 | — | 68 | 419 | 487 | |||||||||||||||||||||||||||||||||||||||
| Change in contingent consideration fair value | — | (50) | — | (50) | — | 780 | — | 780 | |||||||||||||||||||||||||||||||||||||||
| Transaction costs | — | 86 | 4,647 | 4,733 | — | 104 | 99 | 203 | |||||||||||||||||||||||||||||||||||||||
| Loss on disposal of assets | — | 15 | — | 15 | 1,032 | (15) | — | 1,017 | |||||||||||||||||||||||||||||||||||||||
| Reimbursed software costs, net | — | — | — | — | (74) | — | — | (74) | |||||||||||||||||||||||||||||||||||||||
| Legal, advisory and settlement costs | — | 113 | 32 | 145 | — | 227 | 64 | 291 | |||||||||||||||||||||||||||||||||||||||
| Severance and executive recruiting costs | — | 40 | 660 | 700 | — | 153 | 990 | 1,143 | |||||||||||||||||||||||||||||||||||||||
| Amortization of hotel signing fees and lock subsidies | — | 391 | — | 391 | — | 240 | — | 240 | |||||||||||||||||||||||||||||||||||||||
| Other (gain) loss | — | (53) | 35 | (18) | — | 38 | 15 | 53 | |||||||||||||||||||||||||||||||||||||||
| Adjusted EBITDA | 11,774 | 19,656 | (8,357) | 23,073 | 12,430 | 15,214 | (10,032) | 17,612 | |||||||||||||||||||||||||||||||||||||||
| Interest expense | — | (935) | (3,228) | (4,163) | — | (575) | (2,260) | (2,835) | |||||||||||||||||||||||||||||||||||||||
| Adjusted income tax (expense) benefit | (2,141) | (1,207) | 2,618 | (730) | (2,843) | (1,732) | 3,168 | (1,407) | |||||||||||||||||||||||||||||||||||||||
| Adjusted net income (loss) available to common stockholders, unitholders and Series D convertible preferred stockholders on an "as converted" basis | $ | 9,633 | $ | 17,514 | $ | (8,967) | $ | 18,180 | $ | 9,587 | $ | 12,907 | $ | (9,124) | $ | 13,370 | |||||||||||||||||||||||||||||||
| INCOME (LOSS) PER SHARE - DILUTED | |||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) per diluted share attributable to common stockholders (1) | $ | 2.76 | $ | 2.00 | $ | (7.19) | $ | (2.43) | $ | 2.81 | $ | 0.74 | $ | (6.14) | $ | (2.59) | |||||||||||||||||||||||||||||||
| Weighted average common shares outstanding - diluted | 3,160 | 3,160 | 3,160 | 3,160 | 2,984 | 2,984 | 2,984 | 2,984 | |||||||||||||||||||||||||||||||||||||||
| ADJUSTED INCOME (LOSS) PER SHARE - DILUTED | |||||||||||||||||||||||||||||||||||||||||||||||
Adjusted net income (loss) per diluted share available to common stockholders, unitholders and Series D convertible preferred stockholders on an "as converted" basis (1) | $ | 1.05 | $ | 1.92 | $ | (0.98) | $ | 1.99 | $ | 1.20 | $ | 1.61 | $ | (1.14) | $ | 1.67 | |||||||||||||||||||||||||||||||
| Weighted average diluted shares | 9,132 | 9,132 | 9,132 | 9,132 | 7,997 | 7,997 | 7,997 | 7,997 | |||||||||||||||||||||||||||||||||||||||
(1) The sum of net income (loss) per diluted share and adjusted net income (loss) per diluted share, as calculated for the segments, may differ from the consolidated total due to rounding.
11
ASHFORD INC. AND SUBSIDIARIES
PRODUCTS & SERVICES
CONSOLIDATED STATEMENTS OF OPERATIONS AND
RECONCILIATION OF NET INCOME (LOSS) TO EBITDA, ADJUSTED EBITDA AND ADJUSTED NET INCOME (LOSS)
(unaudited, in thousands, except per share amounts)
| Three Months Ended March 31, 2024 | |||||||||||||||||||||||||||||||||||||||||
| Remington | Premier | INSPIRE | RED | OpenKey | Other (1) | Products & Services | |||||||||||||||||||||||||||||||||||
| REVENUES: | |||||||||||||||||||||||||||||||||||||||||
| Hotel management fees: | |||||||||||||||||||||||||||||||||||||||||
| Base management fees | $ | 8,948 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 8,948 | |||||||||||||||||||||||||||
| Incentive management fees | 1,456 | — | — | — | — | — | 1,456 | ||||||||||||||||||||||||||||||||||
| Other management fees | 2,066 | — | — | — | — | — | 2,066 | ||||||||||||||||||||||||||||||||||
| Design and construction fees | — | 9,447 | — | — | — | — | 9,447 | ||||||||||||||||||||||||||||||||||
| Audio visual | — | — | 44,912 | — | — | — | 44,912 | ||||||||||||||||||||||||||||||||||
| Other | — | — | — | 11,224 | 353 | 4,637 | 16,214 | ||||||||||||||||||||||||||||||||||
| Cost reimbursement revenue | 101,340 | 3,518 | 84 | 64 | — | — | 105,006 | ||||||||||||||||||||||||||||||||||
| Total revenues | 113,810 | 12,965 | 44,996 | 11,288 | 353 | 4,637 | 188,049 | ||||||||||||||||||||||||||||||||||
| EXPENSES: | |||||||||||||||||||||||||||||||||||||||||
| Salaries and benefits | 5,700 | 775 | 5,743 | 1,503 | 680 | 320 | 14,721 | ||||||||||||||||||||||||||||||||||
| Stock/unit-based compensation | 21 | 11 | 7 | 5 | — | — | 44 | ||||||||||||||||||||||||||||||||||
| Cost of audio visual revenues | — | — | 30,882 | — | — | — | 30,882 | ||||||||||||||||||||||||||||||||||
| Cost of design and construction revenues | — | 2,030 | — | — | — | — | 2,030 | ||||||||||||||||||||||||||||||||||
| Depreciation and amortization | 2,621 | 2,720 | 549 | 322 | 3 | — | 6,215 | ||||||||||||||||||||||||||||||||||
| General and administrative | 2,573 | 1,058 | 3,432 | 2,298 | 357 | 799 | 10,517 | ||||||||||||||||||||||||||||||||||
| Other | 234 | — | 15 | 5,907 | 30 | 2,737 | 8,923 | ||||||||||||||||||||||||||||||||||
| Reimbursed expenses | 101,338 | 3,508 | 73 | 64 | — | — | 104,983 | ||||||||||||||||||||||||||||||||||
| REIT stock/unit-based compensation | 2 | 10 | 11 | — | — | — | 23 | ||||||||||||||||||||||||||||||||||
| Total operating expenses | 112,489 | 10,112 | 40,712 | 10,099 | 1,070 | 3,856 | 178,338 | ||||||||||||||||||||||||||||||||||
| OPERATING INCOME (LOSS) | 1,321 | 2,853 | 4,284 | 1,189 | (717) | 781 | 9,711 | ||||||||||||||||||||||||||||||||||
| Other | 7 | — | (566) | (451) | (9) | 911 | (108) | ||||||||||||||||||||||||||||||||||
| INCOME (LOSS) BEFORE INCOME TAXES | 1,328 | 2,853 | 3,718 | 738 | (726) | 1,692 | 9,603 | ||||||||||||||||||||||||||||||||||
| Income tax (expense) benefit | (248) | (599) | (1,960) | (256) | — | (391) | (3,454) | ||||||||||||||||||||||||||||||||||
| NET INCOME (LOSS) | 1,080 | 2,254 | 1,758 | 482 | (726) | 1,301 | 6,149 | ||||||||||||||||||||||||||||||||||
| Net (income) loss from consolidated entities attributable to noncontrolling interests | — | — | — | — | 168 | — | 168 | ||||||||||||||||||||||||||||||||||
| NET INCOME (LOSS) ATTRIBUTABLE TO THE COMPANY | $ | 1,080 | $ | 2,254 | $ | 1,758 | $ | 482 | $ | (558) | $ | 1,301 | $ | 6,317 | |||||||||||||||||||||||||||
| Interest expense | — | — | 473 | 442 | 7 | 13 | 935 | ||||||||||||||||||||||||||||||||||
| Amortization of loan costs | — | — | 5 | 9 | — | — | 14 | ||||||||||||||||||||||||||||||||||
| Depreciation and amortization | 2,621 | 2,720 | 1,986 | 1,013 | 3 | 6 | 8,349 | ||||||||||||||||||||||||||||||||||
| Income tax expense (benefit) | 248 | 599 | 1,960 | 256 | — | 391 | 3,454 | ||||||||||||||||||||||||||||||||||
| EBITDA | 3,949 | 5,573 | 6,182 | 2,202 | (548) | 1,711 | 19,069 | ||||||||||||||||||||||||||||||||||
| Stock/unit-based compensation | 22 | 11 | 7 | 5 | — | — | 45 | ||||||||||||||||||||||||||||||||||
| Change in contingent consideration fair value | (50) | — | — | — | — | — | (50) | ||||||||||||||||||||||||||||||||||
| Transaction costs | — | — | — | 86 | — | — | 86 | ||||||||||||||||||||||||||||||||||
| Loss on disposal of assets | — | — | 22 | (7) | — | — | 15 | ||||||||||||||||||||||||||||||||||
| Legal, advisory and settlement costs | 109 | — | — | 4 | — | — | 113 | ||||||||||||||||||||||||||||||||||
| Severance and executive recruiting costs | 40 | — | — | — | — | — | 40 | ||||||||||||||||||||||||||||||||||
| Amortization of hotel signing fees and lock subsidies | — | — | 391 | — | — | — | 391 | ||||||||||||||||||||||||||||||||||
| Other (gain) loss | 20 | — | (73) | — | — | — | (53) | ||||||||||||||||||||||||||||||||||
| Adjusted EBITDA | 4,090 | 5,584 | 6,529 | 2,290 | (548) | 1,711 | 19,656 | ||||||||||||||||||||||||||||||||||
| Interest expense | — | — | (473) | (442) | (7) | (13) | (935) | ||||||||||||||||||||||||||||||||||
| Adjusted income tax (expense) benefit | (39) | (50) | (930) | (92) | — | (96) | (1,207) | ||||||||||||||||||||||||||||||||||
| Adjusted net income (loss) available to common stockholders, unitholders and Series D convertible preferred stockholders on an "as converted" basis | $ | 4,051 | $ | 5,534 | $ | 5,126 | $ | 1,756 | $ | (555) | $ | 1,602 | $ | 17,514 | |||||||||||||||||||||||||||
| INCOME (LOSS) PER SHARE - DILUTED | |||||||||||||||||||||||||||||||||||||||||
Net income (loss) per diluted share attributable to common stockholders (2) | $ | 0.34 | $ | 0.71 | $ | 0.56 | $ | 0.15 | $ | (0.18) | $ | 0.41 | $ | 2.00 | |||||||||||||||||||||||||||
| Weighted average common shares outstanding - diluted | 3,160 | 3,160 | 3,160 | 3,160 | 3,160 | 3,160 | 3,160 | ||||||||||||||||||||||||||||||||||
| ADJUSTED INCOME (LOSS) PER SHARE - DILUTED | |||||||||||||||||||||||||||||||||||||||||
Adjusted net income (loss) per diluted share available to common stockholders, unitholders and Series D convertible preferred stockholders on an "as converted" basis (2) | $ | 0.44 | $ | 0.61 | $ | 0.56 | $ | 0.19 | $ | (0.06) | $ | 0.18 | $ | 1.92 | |||||||||||||||||||||||||||
| Weighted average diluted shares | 9,132 | 9,132 | 9,132 | 9,132 | 9,132 | 9,132 | 9,132 | ||||||||||||||||||||||||||||||||||
(1) Represents Warwick Insurance Company, Pure Wellness and Lismore Capital.
(2) The sum of net income (loss) per diluted share and adjusted net income (loss) per diluted share, as calculated for the subsidiaries, may differ from the Products & Services total due to rounding.
12
ASHFORD INC. AND SUBSIDIARIES
PRODUCTS & SERVICES
CONSOLIDATED STATEMENTS OF OPERATIONS AND
RECONCILIATION OF NET INCOME (LOSS) TO EBITDA, ADJUSTED EBITDA AND ADJUSTED NET INCOME (LOSS)
(unaudited, in thousands, except per share amounts)
| Three Months Ended March 31, 2023 | |||||||||||||||||||||||||||||||||||||||||
| Remington | Premier | INSPIRE | RED | OpenKey | Other (1) | Products & Services | |||||||||||||||||||||||||||||||||||
| REVENUES: | |||||||||||||||||||||||||||||||||||||||||
| Hotel management fees: | |||||||||||||||||||||||||||||||||||||||||
| Base management fees | $ | 9,010 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 9,010 | |||||||||||||||||||||||||||
| Incentive management fees | 982 | — | — | — | — | — | 982 | ||||||||||||||||||||||||||||||||||
| Other management fees | 2,195 | — | — | — | — | — | 2,195 | ||||||||||||||||||||||||||||||||||
| Design and construction fees | — | 6,929 | — | — | — | — | 6,929 | ||||||||||||||||||||||||||||||||||
| Audio visual | — | — | 40,357 | — | — | — | 40,357 | ||||||||||||||||||||||||||||||||||
| Other | — | — | — | 7,628 | 389 | 930 | 8,947 | ||||||||||||||||||||||||||||||||||
| Cost reimbursement revenue | 89,277 | 2,842 | 52 | 23 | — | — | 92,194 | ||||||||||||||||||||||||||||||||||
| Total revenues | 101,464 | 9,771 | 40,409 | 7,651 | 389 | 930 | 160,614 | ||||||||||||||||||||||||||||||||||
| EXPENSES: | |||||||||||||||||||||||||||||||||||||||||
| Salaries and benefits | 5,897 | 581 | 4,448 | 951 | 658 | 354 | 12,889 | ||||||||||||||||||||||||||||||||||
| Deferred compensation plans | — | — | — | 13 | — | — | 13 | ||||||||||||||||||||||||||||||||||
| Stock/unit-based compensation | 31 | 28 | 6 | 5 | — | — | 70 | ||||||||||||||||||||||||||||||||||
| Cost of audio visual revenues | — | — | 27,828 | — | — | — | 27,828 | ||||||||||||||||||||||||||||||||||
| Cost of design and construction revenues | — | 2,866 | — | — | — | — | 2,866 | ||||||||||||||||||||||||||||||||||
| Depreciation and amortization | 2,871 | 2,888 | 463 | 181 | 3 | 6 | 6,412 | ||||||||||||||||||||||||||||||||||
| General and administrative | 1,481 | 736 | 2,762 | 2,135 | 649 | 138 | 7,901 | ||||||||||||||||||||||||||||||||||
| Other | 780 | — | — | 3,989 | 50 | 251 | 5,070 | ||||||||||||||||||||||||||||||||||
| Reimbursed expenses | 89,266 | 2,808 | 39 | 23 | — | — | 92,136 | ||||||||||||||||||||||||||||||||||
| REIT stock/unit-based compensation | 11 | 34 | 13 | — | — | — | 58 | ||||||||||||||||||||||||||||||||||
| Total operating expenses | 100,337 | 9,941 | 35,559 | 7,297 | 1,360 | 749 | 155,243 | ||||||||||||||||||||||||||||||||||
| OPERATING INCOME (LOSS) | 1,127 | (170) | 4,850 | 354 | (971) | 181 | 5,371 | ||||||||||||||||||||||||||||||||||
| Other | 19 | — | (311) | 142 | — | (468) | (618) | ||||||||||||||||||||||||||||||||||
| INCOME (LOSS) BEFORE INCOME TAXES | 1,146 | (170) | 4,539 | 496 | (971) | (287) | 4,753 | ||||||||||||||||||||||||||||||||||
| Income tax (expense) benefit | (296) | 51 | (2,616) | (45) | — | 62 | (2,844) | ||||||||||||||||||||||||||||||||||
| NET INCOME (LOSS) | 850 | (119) | 1,923 | 451 | (971) | (225) | 1,909 | ||||||||||||||||||||||||||||||||||
| Net (income) loss from consolidated entities attributable to noncontrolling interests | — | — | — | — | 226 | 62 | 288 | ||||||||||||||||||||||||||||||||||
| NET INCOME (LOSS) ATTRIBUTABLE TO THE COMPANY | $ | 850 | $ | (119) | $ | 1,923 | $ | 451 | $ | (745) | $ | (163) | $ | 2,197 | |||||||||||||||||||||||||||
| Interest expense | — | — | 295 | 277 | 1 | 2 | 575 | ||||||||||||||||||||||||||||||||||
| Amortization of loan costs | — | — | 37 | 9 | — | — | 46 | ||||||||||||||||||||||||||||||||||
| Depreciation and amortization | 2,871 | 2,888 | 1,580 | 594 | 2 | 9 | 7,944 | ||||||||||||||||||||||||||||||||||
| Income tax expense (benefit) | 296 | (51) | 2,616 | 45 | — | (62) | 2,844 | ||||||||||||||||||||||||||||||||||
| EBITDA | 4,017 | 2,718 | 6,451 | 1,376 | (742) | (214) | 13,606 | ||||||||||||||||||||||||||||||||||
| Stock/unit-based compensation | 29 | 28 | 6 | 5 | — | — | 68 | ||||||||||||||||||||||||||||||||||
| Deferred compensation plans | — | — | — | 13 | — | — | 13 | ||||||||||||||||||||||||||||||||||
| Change in contingent consideration fair value | 780 | — | — | — | — | — | 780 | ||||||||||||||||||||||||||||||||||
| Transaction costs | (122) | — | — | 226 | — | — | 104 | ||||||||||||||||||||||||||||||||||
| Loss on disposal of assets | — | — | (15) | — | — | — | (15) | ||||||||||||||||||||||||||||||||||
| Legal, advisory and settlement costs | 222 | — | — | 5 | — | — | 227 | ||||||||||||||||||||||||||||||||||
| Severance and executive recruiting costs | 16 | — | 102 | — | — | 35 | 153 | ||||||||||||||||||||||||||||||||||
| Amortization of hotel signing fees and lock subsidies | — | — | 236 | — | 4 | — | 240 | ||||||||||||||||||||||||||||||||||
| Other (gain) loss | (57) | — | 95 | — | — | — | 38 | ||||||||||||||||||||||||||||||||||
| Adjusted EBITDA | 4,885 | 2,746 | 6,875 | 1,625 | (738) | (179) | 15,214 | ||||||||||||||||||||||||||||||||||
| Interest expense | — | — | (295) | (277) | (1) | (2) | (575) | ||||||||||||||||||||||||||||||||||
| Adjusted income tax (expense) benefit | (96) | (102) | (1,504) | (73) | — | 43 | (1,732) | ||||||||||||||||||||||||||||||||||
| Adjusted net income (loss) available to common stockholders, unitholders and Series D convertible preferred stockholders on an "as converted" basis | $ | 4,789 | $ | 2,644 | $ | 5,076 | $ | 1,275 | $ | (739) | $ | (138) | $ | 12,907 | |||||||||||||||||||||||||||
| INCOME (LOSS) PER SHARE - DILUTED | |||||||||||||||||||||||||||||||||||||||||
Net income (loss) per diluted share attributable to common stockholders (2) | $ | 0.28 | $ | (0.04) | $ | 0.64 | $ | 0.15 | $ | (0.25) | $ | (0.05) | $ | 0.74 | |||||||||||||||||||||||||||
| Weighted average common shares outstanding - diluted | 2,984 | 2,984 | 2,984 | 2,984 | 2,984 | 2,984 | 2,984 | ||||||||||||||||||||||||||||||||||
| ADJUSTED INCOME (LOSS) PER SHARE - DILUTED | |||||||||||||||||||||||||||||||||||||||||
Adjusted net income (loss) per diluted share available to common stockholders, unitholders and Series D convertible preferred stockholders on an "as converted" basis (2) | $ | 0.60 | $ | 0.33 | $ | 0.63 | $ | 0.16 | $ | (0.09) | $ | (0.02) | $ | 1.61 | |||||||||||||||||||||||||||
| Weighted average diluted shares | 7,997 | 7,997 | 7,997 | 7,997 | 7,997 | 7,997 | 7,997 | ||||||||||||||||||||||||||||||||||
(1) Represents Pure Wellness and Lismore Capital.
(2) The sum of net income (loss) per diluted share and adjusted net income (loss) per diluted share, as calculated for the subsidiaries, may differ from the Products & Services total due to rounding.
13
ASHFORD INC. AND SUBSIDIARIES
RECONCILIATION OF NET INCOME (LOSS) TO EBITDA AND ADJUSTED EBITDA
(unaudited, in thousands)
2024 | 2023 | 2023 | 2023 | March 31, 2024 | |||||||||||||||||||||||||
1st Quarter | 4th Quarter | 3rd Quarter | 2nd Quarter | TTM | |||||||||||||||||||||||||
| Net income (loss) | $ | 1,515 | $ | (4,614) | $ | (3,070) | $ | 1,501 | $ | (4,668) | |||||||||||||||||||
| Net (income) loss from consolidated entities attributable to noncontrolling interests | 171 | 188 | 190 | 214 | 763 | ||||||||||||||||||||||||
| Net (income) loss attributable to redeemable noncontrolling interests | (92) | (102) | (111) | (133) | (438) | ||||||||||||||||||||||||
| Net income (loss) attributable to the company | 1,594 | (4,528) | (2,991) | 1,582 | (4,343) | ||||||||||||||||||||||||
| Interest expense | 4,163 | 4,309 | 3,657 | 3,422 | 15,551 | ||||||||||||||||||||||||
| Amortization of loan costs | 276 | 278 | 268 | 264 | 1,086 | ||||||||||||||||||||||||
| Depreciation and amortization | 8,515 | 9,221 | 8,998 | 8,692 | 35,426 | ||||||||||||||||||||||||
| Income tax expense (benefit) | 2,346 | (2,186) | (205) | 1,227 | 1,182 | ||||||||||||||||||||||||
| Net income (loss) attributable to unitholders redeemable noncontrolling interests | 92 | 102 | 111 | 133 | 438 | ||||||||||||||||||||||||
| EBITDA | 16,986 | 7,196 | 9,838 | 15,320 | 49,340 | ||||||||||||||||||||||||
| Deferred compensation plans | (278) | (480) | (689) | (570) | (2,017) | ||||||||||||||||||||||||
| Stock/unit-based compensation | 449 | 462 | 465 | 992 | 2,368 | ||||||||||||||||||||||||
| Change in contingent consideration fair value | (50) | 170 | 130 | (480) | (230) | ||||||||||||||||||||||||
| Transaction costs | 4,733 | 1,740 | 685 | 419 | 7,577 | ||||||||||||||||||||||||
| Loss on disposal of assets | 15 | 2,109 | 13 | 2 | 2,139 | ||||||||||||||||||||||||
| Legal, advisory and settlement costs | 145 | 128 | 117 | 635 | 1,025 | ||||||||||||||||||||||||
| Severance and executive recruiting costs | 700 | 1,594 | 785 | 1,133 | 4,212 | ||||||||||||||||||||||||
| Amortization of hotel signing fees and lock subsidies | 391 | 321 | 334 | 305 | 1,351 | ||||||||||||||||||||||||
| Other (gain) loss | (18) | (38) | 89 | 72 | 105 | ||||||||||||||||||||||||
| Adjusted EBITDA | $ | 23,073 | $ | 13,202 | $ | 11,767 | $ | 17,828 | $ | 65,870 | |||||||||||||||||||
14