ý | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. |
The Netherlands | 98-1346104 | |
(State or other jurisdiction of incorporation or organization) | (IRS Employer Identification Number) | |
Prins Bernhardplein 200 | ||
1097 JB Amsterdam, the Netherlands | Not Applicable | |
(Address of Principal Executive Offices) | (Zip Code) | |
Large accelerated filer | o | Accelerated filer | ý |
Non-accelerated filer | o | Smaller reporting company | o |
Emerging growth company | ý |
Playa Hotels & Resorts N.V. TABLE OF CONTENTS | ||
Page | ||
Item 1. | ||
Item 2. | ||
Item 3. | ||
Item 4. | ||
Item 1. | ||
Item 1A. | ||
Item 2. | ||
Item 3. | ||
Item 4. | ||
Item 5. | ||
Item 6. |
As of June 30, | As of December 31, | ||||||
2018 | 2017 | ||||||
ASSETS | |||||||
Cash and cash equivalents | $ | 145,864 | $ | 117,229 | |||
Trade and other receivables, net | 54,201 | 51,527 | |||||
Accounts receivable from related parties | 3,090 | 1,495 | |||||
Inventories | 15,306 | 11,309 | |||||
Prepayments and other assets | 36,227 | 34,066 | |||||
Property, plant and equipment, net | 1,784,667 | 1,466,326 | |||||
Investments | 936 | 990 | |||||
Goodwill | 79,028 | 51,731 | |||||
Other intangible assets | 4,785 | 2,087 | |||||
Deferred tax assets | 1,063 | 1,063 | |||||
Total assets | $ | 2,125,167 | $ | 1,737,823 | |||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||
Trade and other payables | $ | 136,814 | $ | 139,528 | |||
Payables to related parties | 3,750 | 2,966 | |||||
Income tax payable | 1,867 | 1,090 | |||||
Debt | 993,741 | 898,215 | |||||
Derivative financial instruments | 3,720 | — | |||||
Other liabilities | 22,027 | 19,394 | |||||
Deferred tax liabilities | 105,834 | 77,081 | |||||
Total liabilities | 1,267,753 | 1,138,274 | |||||
Commitments and contingencies | |||||||
Shareholders' equity | |||||||
Ordinary shares (par value €0.10; 500,000,000 shares authorized, 130,486,360 and 110,305,064 shares issued and 130,478,993 and 110,297,697 shares outstanding as of June 30, 2018 and December 31, 2017, respectively) | 14,160 | 11,803 | |||||
Treasury shares (at cost, 7,367 shares as of June 30, 2018 and December 31, 2017) | (80 | ) | (80 | ) | |||
Paid-in capital | 990,127 | 773,194 | |||||
Accumulated other comprehensive loss | (3,889 | ) | (3,826 | ) | |||
Accumulated deficit | (142,904 | ) | (181,542 | ) | |||
Total shareholders' equity | 857,414 | 599,549 | |||||
Total liabilities and shareholders' equity | $ | 2,125,167 | $ | 1,737,823 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Revenue: | |||||||||||||||
Package | $ | 124,286 | $ | 118,453 | $ | 278,994 | $ | 271,409 | |||||||
Non-package | 21,153 | 22,145 | 42,952 | 43,256 | |||||||||||
Management fees | 55 | — | 351 | — | |||||||||||
Cost reimbursements | 78 | — | 122 | — | |||||||||||
Total revenue | 145,572 | 140,598 | 322,419 | 314,665 | |||||||||||
Direct and selling, general and administrative expenses: | |||||||||||||||
Direct | 78,113 | 79,083 | 159,169 | 155,760 | |||||||||||
Selling, general and administrative | 32,780 | 25,041 | 59,253 | 53,705 | |||||||||||
Depreciation and amortization | 15,882 | 13,875 | 31,571 | 26,285 | |||||||||||
Reimbursed costs | 78 | — | 122 | — | |||||||||||
Gain on insurance proceeds | — | — | (1,521 | ) | — | ||||||||||
Direct and selling, general and administrative expenses | 126,853 | 117,999 | 248,594 | 235,750 | |||||||||||
Operating income | 18,719 | 22,599 | 73,825 | 78,915 | |||||||||||
Interest expense | (5,632 | ) | (14,073 | ) | (27,514 | ) | (28,088 | ) | |||||||
Loss on extinguishment of debt | — | (12,526 | ) | — | (12,526 | ) | |||||||||
Other income (expense) | 378 | (239 | ) | (1,446 | ) | (1,313 | ) | ||||||||
Net income (loss) before tax | 13,465 | (4,239 | ) | 44,865 | 36,988 | ||||||||||
Income tax benefit (provision) | 3,356 | (6,291 | ) | (6,227 | ) | (19,879 | ) | ||||||||
Net income (loss) | 16,821 | (10,530 | ) | 38,638 | 17,109 | ||||||||||
Other comprehensive income (loss), net of taxes: | |||||||||||||||
Benefit obligation gain (loss) | 18 | 29 | (63 | ) | (42 | ) | |||||||||
Other comprehensive income (loss) | 18 | 29 | (63 | ) | (42 | ) | |||||||||
Total comprehensive income (loss) | $ | 16,839 | $ | (10,501 | ) | $ | 38,575 | $ | 17,067 | ||||||
Dividends of cumulative redeemable preferred shares | — | — | — | (7,922 | ) | ||||||||||
Non-cash dividend to warrant holders | — | (879 | ) | — | (879 | ) | |||||||||
Net income (loss) available to ordinary shareholders | $ | 16,821 | $ | (11,409 | ) | $ | 38,638 | $ | 8,308 | ||||||
Earnings (losses) per share - Basic | $ | 0.14 | $ | (0.11 | ) | $ | 0.34 | $ | 0.08 | ||||||
Earnings (losses) per share - Diluted | $ | 0.14 | $ | (0.11 | ) | $ | 0.34 | $ | 0.08 | ||||||
Weighted average number of shares outstanding during the period - Basic | 116,987,887 | 104,064,220 | 113,685,219 | 83,275,443 | |||||||||||
Weighted average number of shares outstanding during the period - Diluted | 117,325,223 | 104,064,220 | 113,981,763 | 83,289,884 |
Shareholders' Equity | ||||||||||||||||||||||||||||||||||||
Cumulative Redeemable Preferred Shares | Ordinary Shares | Treasury Shares | Paid-In Capital | Accumulated Other Comprehensive Loss | Accumulated Deficit | Total | ||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||||
Balance at December 31, 2016 | 28,510,994 | $ | 345,951 | 60,249,330 | $ | 656 | 5,373,884 | $ | (23,108 | ) | $ | 377,196 | $ | (3,719 | ) | $ | (180,422 | ) | $ | 170,603 | ||||||||||||||||
Retroactive application of recapitalization | (9,767,508 | ) | 4,730 | (5,373,884 | ) | 23,108 | (27,838 | ) | — | |||||||||||||||||||||||||||
Adjusted balance at December 31, 2016 | 28,510,994 | $ | 345,951 | 50,481,822 | $ | 5,386 | — | $ | — | $ | 349,358 | $ | (3,719 | ) | $ | (180,422 | ) | $ | 170,603 | |||||||||||||||||
Net income for the period | 17,109 | 17,109 | ||||||||||||||||||||||||||||||||||
Benefit obligation loss, net of tax | (42 | ) | (42 | ) | ||||||||||||||||||||||||||||||||
Recapitalization transaction | 52,982,364 | 5,653 | 427,878 | 433,531 | ||||||||||||||||||||||||||||||||
Dividends on cumulative redeemable preferred shares | 7,922 | (7,922 | ) | (7,922 | ) | |||||||||||||||||||||||||||||||
Purchase of cumulative redeemable preferred shares | (28,510,994 | ) | (239,492 | ) | — | |||||||||||||||||||||||||||||||
Settlement of accrued dividends of cumulative redeemable preferred shares | (114,381 | ) | — | |||||||||||||||||||||||||||||||||
Issuance of ordinary shares in exchange for warrants | 6,593,321 | 736 | 143 | (879 | ) | — | ||||||||||||||||||||||||||||||
Share-based compensation | 51,569 | 5 | 955 | 960 | ||||||||||||||||||||||||||||||||
Balance at June 30, 2017 | — | $ | — | 110,109,076 | $ | 11,780 | — | $ | — | $ | 770,412 | $ | (3,761 | ) | $ | (164,192 | ) | $ | 614,239 |
Shareholders' Equity | ||||||||||||||||||||||||||||||||||||
Cumulative Redeemable Preferred Shares | Ordinary Shares | Treasury Shares | Paid-In Capital | Accumulated Other Comprehensive Loss | Accumulated Deficit | Total | ||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||||
Balance at December 31, 2017 | — | $ | — | 110,297,697 | $ | 11,803 | 7,367 | $ | (80 | ) | $ | 773,194 | $ | (3,826 | ) | $ | (181,542 | ) | $ | 599,549 | ||||||||||||||||
Net income for the period | 38,638 | 38,638 | ||||||||||||||||||||||||||||||||||
Benefit obligation loss, net of tax | (63 | ) | (63 | ) | ||||||||||||||||||||||||||||||||
Shares issued in business combination (see Note 4) | 20,000,000 | 2,336 | 213,064 | 215,400 | ||||||||||||||||||||||||||||||||
Share-based compensation | 181,296 | 21 | 3,869 | 3,890 | ||||||||||||||||||||||||||||||||
Balance at June 30, 2018 | — | $ | — | 130,478,993 | $ | 14,160 | 7,367 | $ | (80 | ) | $ | 990,127 | $ | (3,889 | ) | $ | (142,904 | ) | $ | 857,414 |
Six Months Ended June 30, | |||||||
2018 | 2017 | ||||||
CASH FLOW FROM OPERATING ACTIVITIES: | |||||||
Net income | $ | 38,638 | $ | 17,109 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 31,571 | 26,285 | |||||
Amortization of debt discount, premium and issuance costs | 827 | 1,388 | |||||
Share-based compensation | 3,890 | 960 | |||||
Loss on derivative financial instruments | 3,720 | — | |||||
Loss on extinguishment of debt | — | 12,526 | |||||
Other | 592 | 253 | |||||
Changes in assets and liabilities: | |||||||
Trade and other receivables, net | (2,893 | ) | 4,810 | ||||
Accounts receivable from related parties | (1,595 | ) | (346 | ) | |||
Inventories | (372 | ) | (853 | ) | |||
Prepayments and other assets | 1,300 | (28,763 | ) | ||||
Trade and other payables | (9,098 | ) | 13,046 | ||||
Accounts payable to related parties | 784 | (1,562 | ) | ||||
Income tax payable | 777 | 14,853 | |||||
Deferred consideration | — | 649 | |||||
Other liabilities | 299 | 364 | |||||
Net cash provided by operating activities | 68,440 | 60,719 | |||||
INVESTING ACTIVITIES: | |||||||
Acquisition of Sagicor business, net of cash acquired | (93,128 | ) | — | ||||
Purchase of property, plant and equipment | (40,058 | ) | (12,673 | ) | |||
Purchase of intangibles | (1,318 | ) | (179 | ) | |||
Proceeds from disposal of property, plant and equipment | — | 18 | |||||
Net cash used in investing activities | (134,504 | ) | (12,834 | ) | |||
FINANCING ACTIVITIES: | |||||||
Proceeds from debt issuance | 99,499 | 528,675 | |||||
Issuance costs of debt | — | (7,984 | ) | ||||
Repayment of deferred consideration | — | (1,365 | ) | ||||
Repayment of Term Loan | (4,800 | ) | (362,813 | ) | |||
Repayment of Senior Notes due 2020 | — | (121,597 | ) | ||||
Recapitalization transaction | — | 79,658 | |||||
Net cash provided by financing activities | 94,699 | 114,574 | |||||
INCREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | 28,635 | 162,459 | |||||
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING OF THE PERIOD | $ | 117,229 | $ | 43,163 | |||
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, END OF THE PERIOD | $ | 145,864 | $ | 205,622 | |||
RECONCILIATION OF CASH, CASH EQUIVALENTS AND RESTRICTED CASH | |||||||
Cash and cash equivalents | 145,864 | 195,349 | |||||
Restricted cash | — | 10,273 | |||||
TOTAL CASH, CASH EQUIVALENTS AND RESTRICTED CASH | $ | 145,864 | $ | 205,622 | |||
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | |||||||
Cash paid for interest, net of interest capitalized | $ | 28,154 | $ | 27,602 | |||
Cash paid for income taxes | $ | 5,572 | $ | 12,347 |
SUPPLEMENTAL DISCLOSURES OF NON-CASH INVESTING AND FINANCING ACTIVITIES | |||||||
Non-cash issuance of shares in business combination (see Note 4) | $ | 215,400 | $ | — | |||
Capital expenditures incurred but not yet paid | $ | 290 | $ | 277 | |||
Intangible assets capitalized but not yet paid | $ | 393 | $ | — | |||
Non-cash PIK dividends | $ | — | $ | 7,922 | |||
Purchase of cumulative redeemable preferred shares | $ | — | $ | (239,492 | ) | ||
Settlement of accrued dividends of cumulative redeemable preferred shares | $ | — | $ | (114,381 | ) | ||
Par value of ordinary shares issued in exchange for warrants | $ | — | $ | 736 | |||
Non-cash dividend to warrant holders | $ | — | $ | 879 | |||
Par value of vested restricted share awards | $ | 21 | $ | 5 |
Standard | Description | Date of Adoption | Effect on the Financial Statements or Other Significant Matters | |||
Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers (Topic 606), as clarified and amended by ASU 2016-08, ASU 2016-10, ASU 2016-12 and ASU 2016-20 | This standard provides companies with a single model for use in accounting for revenue arising from contracts with customers and supersedes current revenue recognition guidance, including industry-specific revenue guidance. The core principle of the model is to recognize revenue when control of the goods or services transfers to the customer, as opposed to recognizing revenue when the risks and rewards transfer to the customer under the existing revenue guidance. | January 2018 | We applied the modified retrospective transition method to all contracts upon the adoption of ASU 2014-09. We provided the additional required disclosures, but the cumulative adjustment from our comparative periods was zero in our Condensed Consolidated Financial Statements. See Note 3. | |||
ASU No. 2016-01, Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities as clarified and amended by ASU 2018-03 | This standard significantly revises the accounting related to the classification and measurement of investment in equity securities and the presentation of certain fair value changes of financial liabilities measured at fair value. It also amends certain disclosure requirements associated with the fair value of financial instruments. | January 2018 | The adoption of ASU 2016-01 reduced our disclosure requirements, but did not impact our Condensed Consolidated Financial Statements. We are no longer required to disclose the method and significant assumptions used to estimate the fair value of our financial instruments measured at amortized cost on the Condensed Consolidated Balance Sheet. | |||
ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (a consensus of the FASB Emerging Issues Task Force) | This standard amends Accounting Standards Codification ("ASC") 230 to add or clarify guidance on the classification of certain cash receipts and payments in the statement of cash flows. ASC 230 lacks consistent principles for evaluating the classification of cash payments and receipts in the statement of cash flows. This has led to diversity in practice and, in certain circumstances, financial statement restatements. Therefore, the FASB issued ASU 2016-15 with the intent of reducing diversity in practice with respect to eight types of cash flows. | January 2018 | The adoption of ASU 2016-15 provided clarification to existing requirements and did not have a material effect on our Condensed Consolidated Financial Statements. | |||
ASU No. 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other than Inventory | This standard requires that an entity recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. Prior to this ASU, an entity was prohibited from recognizing the income tax consequences of an intra-entity asset transfer until the asset had been sold to an outside party. | January 2018 | The adoption of ASU 2016-16 did not have a material effect on our Condensed Consolidated Financial Statements. We have limited intra-entity asset transfers, or intercompany sales, other than inventory that would require income tax recognition. | |||
ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business | This standard provides guidance that will enable more consistency in accounting for transactions when determining if they represent acquisitions or disposals of assets or of a business. Under the ASU, when determining whether an integrated set of assets and activities constitutes a business, entities must go through a “screen”. | January 2018 | The adoption of ASU 2017-01 simplified our decision making process of determining whether a purchase constitutes a business combination or an acquisition of assets. We applied this guidance to our acquisition of the Sagicor Assets (as defined in Note 4), which was accounted for as a business combination. | |||
ASU No. 2017-05, Other Income—Gains and Losses from the Derecognition of Non-financial Assets (Subtopic 610-20): Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Non-financial Assets | The standard clarifies the scope and accounting of a financial asset that meets the definition of an in substance non-financial asset and the definition of an in substance non-financial asset. The ASU also adds guidance for partial sales of non-financial assets. | January 2018 | We utilized the modified retrospective transition method upon the adoption of ASU 2017-05 and the cumulative adjustment from our comparative periods was zero in our Condensed Consolidated Financial Statements, as we historically have not sold material non-financial assets in our normal course of business. |
Standard | Description | Date of Adoption | Effect on the Financial Statements or Other Significant Matters | |||
ASU No. 2016-02, Leases (Topic 842) | This standard introduces a lessee model that brings most leases on the balance sheet. This will increase a lessee’s reported assets and liabilities—in some cases very significantly. Lessor accounting remains substantially similar to current U.S. GAAP. | January 2019 | We are currently evaluating ASU 2016-02 noting that we have not determined the full impact of adoption of ASU 2016-02 on our Condensed Consolidated Financial Statements. However, we expect to record a right of use asset and corresponding lease liability for our operating leases with an original term of greater than one year where we are the lessee. The potential impact on our Condensed Consolidated Financial Statements is largely based upon the population of long-term leases in effect at the date of adoption, but we expect the most significant leases to consist of our corporate offices. We do not expect material changes to the recognition of operating lease expense in our Condensed Consolidated Financial Statements. |
Three Months Ended June 30, 2018 | |||||||||||||||||||||||
Yucatán Peninsula | Pacific Coast | Dominican Republic | Jamaica | Other | Total | ||||||||||||||||||
Package revenue | $ | 57,812 | $ | 17,183 | $ | 25,661 | $ | 23,629 | $ | 1 | $ | 124,286 | |||||||||||
Non-package revenue | 7,864 | 3,127 | 5,835 | 4,336 | (9 | ) | 21,153 | ||||||||||||||||
Management fees | — | — | — | — | 55 | 55 | |||||||||||||||||
Cost reimbursements | — | — | — | — | 78 | 78 | |||||||||||||||||
Total revenue | $ | 65,676 | $ | 20,310 | $ | 31,496 | $ | 27,965 | $ | 125 | $ | 145,572 |
Three Months Ended June 30, 2017 | |||||||||||||||||||||||
Yucatán Peninsula | Pacific Coast | Dominican Republic | Jamaica | Other | Total | ||||||||||||||||||
Package revenue | $ | 61,431 | $ | 19,221 | $ | 25,343 | $ | 12,458 | $ | — | $ | 118,453 | |||||||||||
Non-package revenue | 9,502 | 4,499 | 5,594 | 2,550 | — | 22,145 | |||||||||||||||||
Total revenue | $ | 70,933 | $ | 23,720 | $ | 30,937 | $ | 15,008 | $ | — | $ | 140,598 |
Six Months Ended June 30, 2018 | |||||||||||||||||||||||
Yucatán Peninsula | Pacific Coast | Dominican Republic | Jamaica | Other | Total | ||||||||||||||||||
Package revenue | $ | 130,866 | $ | 42,209 | $ | 61,049 | $ | 44,528 | $ | 342 | $ | 278,994 | |||||||||||
Non-package revenue | 16,094 | 8,169 | 10,864 | 7,824 | 1 | 42,952 | |||||||||||||||||
Management fees | — | — | — | — | 351 | 351 | |||||||||||||||||
Cost reimbursements | — | — | — | — | 122 | 122 | |||||||||||||||||
Total revenue | $ | 146,960 | $ | 50,378 | $ | 71,913 | $ | 52,352 | $ | 816 | $ | 322,419 |
Six Months Ended June 30, 2017 | |||||||||||||||||||||||
Yucatán Peninsula | Pacific Coast | Dominican Republic | Jamaica | Other | Total | ||||||||||||||||||
Package revenue | $ | 135,605 | $ | 43,930 | $ | 60,345 | $ | 31,529 | $ | — | $ | 271,409 | |||||||||||
Non-package revenue | 18,073 | 9,131 | 10,451 | 5,601 | — | 43,256 | |||||||||||||||||
Total revenue | $ | 153,678 | $ | 53,061 | $ | 70,796 | $ | 37,130 | $ | — | $ | 314,665 |
Revenue | Description | Timing of Revenue Recognition | ||
Package | Sale of all-inclusive packages, which include room accommodations, food and beverage services and entertainment activities. All services offered as part of the all-inclusive experience are considered to be one performance obligation. | Revenue is recognized, net of discounts and rebates, based on the agreed upon price after each stay when our performance obligation of all-inclusive services is considered transferred to the customer. | ||
Non-package | All other revenues earned from the operations of our resorts other than package revenue. This includes, but is not limited to, the sale of upgrades, premium services and amenities, such as premium rooms, dining experiences, wines and spirits and spa packages. | Revenue is recognized based on the agreed upon price after the completion of the sale when the product or service is transferred to the customer. | ||
Management fees | Fees earned for managing hotels owned by third-parties. The fees earned are typically composed of a base fee, which is computed as a percentage of resort revenue, and an incentive fee, which is computed as a percentage of resort profitability. | Revenue is recognized over the term of the service period as the third-party owners benefit from our management services. | ||
Cost reimbursements | Cash reimbursements for costs related to managing hotels owned by third-parties. | Revenue is recognized when agreed upon reimbursable costs are incurred from managing hotels owned by third-parties. |
• | The Hilton Rose Hall Resort & Spa; |
• | The Jewel Runaway Bay Beach & Golf Resort; |
• | The Jewel Dunn’s River Beach Resort; |
• | The Jewel Paradise Cove Beach Resort & Spa; |
• | The 88 units comprising one of the towers in the multi-tower condominium and spa at the Jewel Grande Montego Bay, which will be incorporated into the Hyatt Ziva Rose Hall in Jamaica; |
• | Developable land sites adjacent to the Jewel Grande Montego Bay and the Hilton Rose Hall Resort & Spa; |
• | The management contract for a portion of the units owned by the Sagicor Parties at the Jewel Grande Montego Bay; and |
• | All of the Sagicor Parties' rights to “The Jewel” hotel brand. |
Cash consideration, net of cash acquired of $0.1 million | $ | 93,128 | ||
Ordinary shares (20,000,000 shares at the Acquisition Date closing price of $10.77 per share, €0.10 par value) | 215,400 | |||
Total purchase consideration | $ | 308,528 |
Total purchase consideration | $ | 308,528 | ||
Net assets acquired | ||||
Working capital | (1,665 | ) | ||
Property, plant and equipment | 309,452 | |||
Identifiable intangible assets and liabilities | 2,197 | |||
Deferred income taxes | (28,753 | ) | ||
Goodwill | 27,297 | |||
Total net assets acquired | $ | 308,528 |
Balance Sheet Classification | Estimated Fair Value | Weighted-Average Amortization Period (in years) | ||||||
Management agreement | Other intangible assets | $ | 1,900 | 20 | ||||
Favorable ground lease asset | Prepayments and other assets | 2,631 | 22 | |||||
Unfavorable ground lease liability | Other liabilities | (2,334 | ) | 22 | ||||
Total identifiable intangibles acquired | $ | 2,197 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Pro forma revenue | $ | 163,270 | $ | 166,101 | $ | 372,183 | $ | 370,765 | |||||||
Pro forma net income (loss) | $ | 19,911 | $ | (9,517 | ) | $ | 50,319 | $ | 20,052 | ||||||
Pro forma earnings (losses) per share - Basic | $ | 0.15 | $ | (0.08 | ) | $ | 0.39 | $ | 0.09 | ||||||
Pro forma earnings (losses) per share - Diluted | $ | 0.15 | $ | (0.08 | ) | $ | 0.39 | $ | 0.09 |
• | Depreciation and amortization expense resulting from the estimated fair values of acquired property, plant and equipment and identifiable definite-lived intangible assets and liabilities, respectively; |
• | Elimination of the Sagicor Assets' management fees and interest expense; |
• | Interest expense resulting from the issuance of an $100.0 million term loan add-on (see Note 14); |
• | Related income tax effects; and |
• | Weighted average number of shares outstanding. |
June 2, 2018 - June 30, 2018 | ||||
Revenue | $ | 8,662 | ||
Net income | $ | 2,692 |
Purchase of all of our Predecessor's cumulative redeemable preferred shares (1) | $ | 353,873 | ||
Net cash transferred from Pace | 78,859 | |||
Playa Employee Offering (2) | 799 | |||
Total consideration transferred | $ | 433,531 |
As of June 30, | As of December 31, | ||||||
2018 | 2017 | ||||||
Land, buildings and improvements | $ | 1,787,043 | $ | 1,493,407 | |||
Fixtures and machinery | 55,537 | 53,188 | |||||
Furniture and other fixed assets | 205,086 | 173,912 | |||||
Construction in progress | 49,242 | 29,220 | |||||
Total property, plant and equipment, gross | 2,096,908 | 1,749,727 | |||||
Accumulated depreciation | (312,241 | ) | (283,401 | ) | |||
Total property, plant and equipment, net | $ | 1,784,667 | $ | 1,466,326 |
As of June 30, | As of December 31, | ||||||
2018 | 2017 | ||||||
Accounts receivable | $ | 3,090 | $ | 1,495 | |||
Accounts and other payables | $ | 3,750 | $ | 2,966 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Hyatt franchise fees (1) | $ | 4,594 | $ | 3,409 | $ | 9,045 | $ | 7,774 | |||||||
Lease payments (2) | 255 | 269 | 472 | 578 | |||||||||||
Dividends on the Preferred Shares (3) | — | — | — | 7,922 | |||||||||||
Deferred consideration accretion (4) | — | — | — | 36 | |||||||||||
Interest expense on related party debt (4) | — | — | — | 372 | |||||||||||
Total transactions with related parties | $ | 4,849 | $ | 3,678 | $ | 9,517 | $ | 16,682 |
(1) | Included in direct expense in the Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). |
(2) | Included in selling, general, and administrative expense in the Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). |
(3) | Included in dividends of Preferred Shares in the Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). |
(4) | Included in interest expense in the Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). |
Number of Shares | Weighted-Average Grant Date Fair Value | |||||
Unvested balance at January 1, 2018 | 1,265,830 | $ | 10.19 | |||
Granted | 486,884 | 10.78 | ||||
Vested | (181,296 | ) | 10.34 | |||
Forfeited | (22,735 | ) | 10.20 | |||
Unvested balance at June 30, 2018 | 1,548,683 | $ | 10.36 |
Performance Award Grant Date | Percentage of Total Award | Grant Date Fair Value by Component | Volatility (1) | Interest Rate (2) | Dividend Yield | |||||||||||
May 26, 2017 | ||||||||||||||||
Total Shareholder Return | 50 | % | $ | 770 | 27.02 | % | 1.39 | % | — | % | ||||||
Adjusted EBITDA Comparison | 50 | % | $ | 1,350 | — | % | — | % | — | % | ||||||
January 2, 2018 | ||||||||||||||||
Total Shareholder Return | 50 | % | $ | 860 | 26.13 | % | 2.00 | % | — | % | ||||||
Adjusted EBITDA Comparison | 50 | % | $ | 1,475 | — | % | — | % | — | % |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Numerator: | |||||||||||||||
Net income (loss) | $ | 16,821 | $ | (10,530 | ) | $ | 38,638 | $ | 17,109 | ||||||
Non-cash dividend to warrant holders | — | (879 | ) | — | (879 | ) | |||||||||
Preferred Share dividends | — | — | — | (7,922 | ) | ||||||||||
Allocation of undistributed earnings to preferred shareholders | — | — | — | (1,359 | ) | ||||||||||
Numerator for basic EPS - income (loss) available to ordinary shareholders | 16,821 | (11,409 | ) | 38,638 | 6,949 | ||||||||||
Add back Preferred Share dividends (1) | — | — | — | — | |||||||||||
Add back undistributed earnings to preferred shareholders (1) | — | — | — | — | |||||||||||
Numerator for diluted EPS - income (loss) available to ordinary shareholders after assumed conversions | $ | 16,821 | $ | (11,409 | ) | $ | 38,638 | $ | 6,949 | ||||||
Denominator: | |||||||||||||||
Denominator for basic EPS - weighted-average shares | 116,987,887 | 104,064,220 | 113,685,219 | 83,275,443 | |||||||||||
Effect of dilutive securities: | |||||||||||||||
Unvested restricted share awards | 337,336 | — | 296,544 | 14,441 | |||||||||||
Preferred Shares | — | — | — | — | |||||||||||
Denominator for diluted EPS - adjusted weighted-average shares | 117,325,223 | 104,064,220 | 113,981,763 | 83,289,884 | |||||||||||
EPS - Basic | $ | 0.14 | $ | (0.11 | ) | $ | 0.34 | $ | 0.08 | ||||||
EPS - Diluted | $ | 0.14 | $ | (0.11 | ) | $ | 0.34 | $ | 0.08 |
As of June 30, | As of December 31, | ||||||
2018 | 2017 | ||||||
Debt Obligations | |||||||
Term Loan(1) | $ | 1,001,598 | $ | 906,398 | |||
Revolving Credit Facility | — | — | |||||
Total Debt Obligations | 1,001,598 | 906,398 | |||||
Unamortized discount | |||||||
Discount on Term Loan | (2,942 | ) | (2,600 | ) | |||
Total unamortized discount | (2,942 | ) | (2,600 | ) | |||
Unamortized debt issuance costs: | |||||||
Term Loan | (4,915 | ) | (5,583 | ) | |||
Total unamortized debt issuance costs | (4,915 | ) | (5,583 | ) | |||
Total Debt | $ | 993,741 | $ | 898,215 |
(1) | Borrowings under the Term Loan bear interest at floating rates equal to London Interbank Offered Rate (“LIBOR”) plus 2.75% (where the applicable LIBOR rate has a 1.0% floor). The interest rate was 4.84% and 4.62% as of June 30, 2018 and December 31, 2017, respectively. Effective March 29, 2018, we entered into two interest rate swaps to fix interest at 2.85% on $800.0 million of our Term Loan (See Note 15). |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||
Derivatives not Designated as Hedging Instruments | Income Statement Classification | 2018 | 2017 | 2018 | 2017 | |||||||||||||
Interest rate swaps | Interest expense | $ | (5,398 | ) | $ | — | $ | 5,627 | $ | — |
As of June 30, | As of December 31, | |||||||||
Derivatives not Designated as Hedging Instruments | Balance Sheet Classification | 2018 | 2017 | |||||||
Interest rate swaps | Derivative financial instruments | $ | 3,720 | $ | — |
• | Level 1: Unadjusted quoted prices in active markets for identical assets or liabilities. |
• | Level 2: Unadjusted quoted prices for similar assets or liabilities in active markets, or unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or inputs other than quoted prices that are observable for the asset or liability. |
• | Level 3: Inputs are unobservable and reflect our judgments about assumptions that market participants would use in pricing an asset or liability. |
June 30, 2018 | Level 1 | Level 2 | Level 3 | |||||||||||||
Fair value measurements on a recurring basis: | ||||||||||||||||
Interest rate swap | $ | 3,720 | $ | — | $ | 3,720 | $ | — |
Deferred Consideration | |||
Balance as of December 31, 2016 | $ | 1,836 | |
Total gains included in earnings (or change in net assets) (1) | (26 | ) | |
Settlements | (630 | ) | |
Balance as of March 31, 2017 | $ | 1,180 | |
Total losses included in earnings (or change in net assets) (1) | 675 | ||
Settlements | (735 | ) | |
Balance as of June 30, 2017 | $ | 1,120 |
Carrying Value | Fair Value | |||||||||||||||
As of June 30, 2018 | Level 1 | Level 2 | Level 3 | |||||||||||||
Financial liabilities not recorded at fair value: | ||||||||||||||||
Debt: | ||||||||||||||||
Term Loan | $ | 993,741 | $ | — | $ | — | $ | 993,962 | ||||||||
Revolving Credit Facility | — | — | — | — | ||||||||||||
Total | $ | 993,741 | $ | — | $ | — | $ | 993,962 |
Carrying Value | Fair Value | |||||||||||||||
As of December 31, 2017 | Level 1 | Level 2 | Level 3 | |||||||||||||
Financial liabilities not recorded at fair value: | ||||||||||||||||
Debt: | ||||||||||||||||
Term Loan | $ | 898,215 | $ | — | $ | — | $ | 916,369 | ||||||||
Revolving Credit Facility | — | — | — | — | ||||||||||||
Total | $ | 898,215 | $ | — | $ | — | $ | 916,369 |
Valuation Technique | ||
Financial liabilities recorded at fair value: | ||
Interest rate swaps | The fair value of the interest rate swaps is estimated based on the expected future cash flows by incorporating the notional amount of the swaps, the contractual period to maturity, and observable market-based inputs, including interest rate curves. The fair value also incorporates credit valuation adjustments to appropriately reflect nonperformance risk. | |
Financial liabilities not recorded at fair value: | ||
Term Loan | The fair value of our Term Loan is estimated using cash flow projections over the remaining contractual period by applying market forward rates and discounting back at the appropriate discount rate. | |
Revolving Credit Facility | The valuation technique of our Revolving Credit Facility is consistent with our Term Loan. The fair value of the Revolving Credit Facility generally approximates its carrying value as the expected term is significantly shorter in duration. |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Service cost | $ | 176 | $ | 201 | $ | 350 | $ | 359 | |||||||
Interest cost | 89 | 79 | 176 | 147 | |||||||||||
Effect of foreign exchange rates | (320 | ) | 220 | 25 | 592 | ||||||||||
Amortization of prior service cost | (77 | ) | — | (52 | ) | — | |||||||||
Amortization of gain | (4 | ) | (7 | ) | (10 | ) | (15 | ) | |||||||
Compensation-non-retirement post employment benefits | 14 | 1 | 18 | 5 | |||||||||||
Settlement gain | — | — | — | (7 | ) | ||||||||||
Net periodic pension (benefit) cost | $ | (122 | ) | $ | 494 | $ | 507 | $ | 1,081 |
As of June 30, | As of December 31, | ||||||
2018 | 2017 | ||||||
Gross trade and other receivables | $ | 54,651 | $ | 52,312 | |||
Allowance for doubtful accounts | (450 | ) | (785 | ) | |||
Total trade and other receivables, net | $ | 54,201 | $ | 51,527 |
As of June 30, | As of December 31, | ||||||
2018 | 2017 | ||||||
Advances to suppliers | $ | 8,028 | $ | 6,509 | |||
Prepaid income taxes | 10,674 | 10,935 | |||||
Prepaid other taxes (1) | 10,155 | 10,737 | |||||
Contract deposit (2) | 2,700 | 2,700 | |||||
Favorable ground lease asset (3) | 2,631 | — | |||||
Other assets | 2,039 | 3,185 | |||||
Total prepayments and other assets | $ | 36,227 | $ | 34,066 |
(1) | Includes recoverable value-added tax and general consumption tax accumulated by our Mexico and Jamaica entities, respectively. |
Yucatan Peninsula | Pacific Coast | Dominican Republic | Jamaica | Total | ||||||||||||||||
Gross carrying value as of December 31, 2017 | $ | 51,731 | $ | — | $ | — | $ | — | $ | 51,731 | ||||||||||
Accumulated impairment losses | — | — | — | — | — | |||||||||||||||
Net carrying value as of December 31, 2017 | 51,731 | — | — | — | 51,731 | |||||||||||||||
Additions (see Note 4) | — | — | — | 27,297 | 27,297 | |||||||||||||||
Gross carrying value as of June 30, 2018 | 51,731 | — | — | 27,297 | 79,028 | |||||||||||||||
Accumulated impairment losses | — | — | — | — | — | |||||||||||||||
Net carrying value as of June 30, 2018 | $ | 51,731 | $ | — | $ | — | $ | 27,297 | $ | 79,028 |
As of June 30, | As of December 31, | ||||||
2018 | 2017 | ||||||
Gross carrying value: | |||||||
Strategic alliance | $ | — | $ | 3,616 | |||
Enterprise resource planning system (1) | 1,050 | — | |||||
Management contract (2) | 1,900 | — | |||||
Licenses (3) | 858 | 981 | |||||
Other | 2,537 | 3,298 | |||||
Gross carrying value | 6,345 | 7,895 | |||||
Accumulated amortization: | |||||||
Strategic alliance | — | (3,616 | ) | ||||
Other | (1,560 | ) | (2,192 | ) | |||
Accumulated amortization | (1,560 | ) | (5,808 | ) | |||
Net carrying value: | |||||||
Strategic alliance | — | — | |||||
Enterprise resource planning system (1) | 1,050 | — | |||||
Management contract (2) | 1,900 | — | |||||
Licenses (3) | 858 | 981 | |||||
Other | 977 | 1,106 | |||||
Net carrying value | $ | 4,785 | $ | 2,087 |
As of June 30, | As of December 31, | ||||||
2018 | 2017 | ||||||
Trade payables | $ | 22,882 | $ | 18,160 | |||
Advance deposits | 36,058 | 43,884 | |||||
Withholding and other taxes payable | 42,780 | 34,904 | |||||
Interest payable | 270 | 5,586 | |||||
Payroll and related accruals | 13,852 | 13,848 | |||||
Accrued expenses and other payables | 20,972 | 23,146 | |||||
Total trade and other payables | $ | 136,814 | $ | 139,528 |
As of June 30, | As of December 31, | ||||||
2018 | 2017 | ||||||
Tax contingencies | $ | 2,347 | $ | 2,310 | |||
Pension obligations | 4,936 | 4,456 | |||||
Cap Cana land purchase obligation | 10,625 | 10,625 | |||||
Unfavorable ground lease liability (1) | 2,334 | — | |||||
Other | 1,785 | 2,003 | |||||
Total other liabilities | $ | 22,027 | $ | 19,394 |
(1) | Represents an unfavorable ground lease intangible acquired in the business combination with the Sagicor Parties (see Note 4). Amortization is recorded in non-package revenue in the Condensed Consolidated Statement of Operations and Comprehensive Income (Loss). |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Revenue: | |||||||||||||||
Yucatàn Peninsula | $ | 63,667 | $ | 68,927 | $ | 142,938 | $ | 149,675 | |||||||
Pacific Coast | 19,815 | 23,073 | 48,870 | 51,505 | |||||||||||
Dominican Republic | 31,496 | 30,938 | 71,913 | 70,796 | |||||||||||
Jamaica | 26,729 | 14,475 | 50,490 | 35,947 | |||||||||||
Segment net revenue (1) | 141,707 | 137,413 | 314,211 | 307,923 | |||||||||||
Other | (9 | ) | 2 | 343 | 2 | ||||||||||
Management fees | 55 | — | 351 | — | |||||||||||
Cost reimbursements | 78 | — | 122 | — | |||||||||||
Compulsory tips | 3,741 | 3,183 | 7,392 | 6,740 | |||||||||||
Total gross revenue | $ | 145,572 | $ | 140,598 | $ | 322,419 | $ | 314,665 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Adjusted EBITDA: | |||||||||||||||
Yucatàn Peninsula | $ | 25,726 | $ | 29,176 | $ | 65,330 | $ | 72,246 | |||||||
Pacific Coast | 6,550 | 9,212 | 20,458 | 23,484 | |||||||||||
Dominican Republic | 9,586 | 8,364 | 28,013 | 25,803 | |||||||||||
Jamaica | 8,089 | 2,268 | 18,733 | 9,769 | |||||||||||
Segment Adjusted EBITDA | 49,951 | 49,020 | 132,534 | 131,302 | |||||||||||
Other corporate - unallocated | (8,689 | ) | (8,001 | ) | (17,009 | ) | (15,810 | ) | |||||||
Management fees | 55 | — | 351 | — | |||||||||||
Total consolidated Adjusted EBITDA | 41,317 | 41,019 | 115,876 | 115,492 | |||||||||||
Less: | |||||||||||||||
Other (income) expense, net | (378 | ) | 239 | 1,446 | 1,313 | ||||||||||
Share-based compensation | 2,104 | 960 | 3,890 | 960 | |||||||||||
Loss on extinguishment of debt | — | 12,526 | — | 12,526 | |||||||||||
Transaction expenses | 3,887 | 3,300 | 6,231 | 9,300 | |||||||||||
Severance expense | — | 442 | — | 442 | |||||||||||
Other tax expense | 427 | 247 | 858 | 423 | |||||||||||
Jamaica delayed opening accrual reversal | — | (111 | ) | (342 | ) | (111 | ) | ||||||||
Non-service cost components of net periodic pension benefit (cost) | 298 | (293 | ) | (157 | ) | (722 | ) | ||||||||
Add: | |||||||||||||||
Interest expense | (5,632 | ) | (14,073 | ) | (27,514 | ) | (28,088 | ) | |||||||
Depreciation and amortization | (15,882 | ) | (13,875 | ) | (31,571 | ) | (26,285 | ) | |||||||
Net income (loss) before tax | 13,465 | (4,239 | ) | 44,865 | 36,988 | ||||||||||
Income tax benefit (provision) | 3,356 | (6,291 | ) | (6,227 | ) | (19,879 | ) | ||||||||
Net income (loss) | $ | 16,821 | $ | (10,530 | ) | $ | 38,638 | $ | 17,109 |
• | general economic uncertainty and the effect of general economic conditions on the lodging industry in particular; |
• | the popularity of the all-inclusive resort model, particularly in the luxury segment of the resort market; |
• | the success and continuation of our relationship with Hyatt; |
• | the volatility of currency exchange rates; |
• | the success of our branding or rebranding initiatives with our current portfolio and resorts that may be acquired in the future, including the rebranding of two of our resorts under the all-inclusive “Panama Jack” brand and rebranding of certain resorts recently acquired from Sagicor (as defined below) in Jamaica; |
• | our failure to successfully complete acquisition, expansion, repair and renovation projects in the timeframes and at the costs and returns anticipated; |
• | significant increases in construction and development costs; |
• | our ability to obtain and maintain financing arrangements on attractive terms; |
• | the impact of and changes in governmental regulations or the enforcement thereof, tax laws and rates, accounting guidance and similar matters in regions in which we operate; |
• | the effectiveness of our internal controls and our corporate policies and procedures and the success and timing of the remediation efforts for the material weakness that we identified in our internal control over financial reporting; |
• | changes in personnel and availability of qualified personnel; |
• | environmental uncertainties and risks related to adverse weather conditions and natural disasters; |
• | dependence on third parties to provide Internet, telecommunications and network connectivity to our data centers; |
• | the volatility of the market price and liquidity of our ordinary shares and other of our securities; and |
• | the increasingly competitive environment in which we operate. |
Name of Resort | Location | Brand and Type | Operator | Year Built; Significant Renovations | Rooms | |||||
Owned Resorts | ||||||||||
Yucatán Peninsula | ||||||||||
Hyatt Ziva Cancún | Cancún, Mexico | Hyatt Ziva (all ages) | Playa | 1975; 1980; 1986; 2002; 2015 | 547 | |||||
Hyatt Zilara Cancún | Cancún, Mexico | Hyatt Zilara (adults-only) | Playa | 2006; 2009; 2013; 2017 | 307 | |||||
Panama Jack Resorts Cancún | Cancún, Mexico | Panama Jack (all ages)(1) | Playa | 2002; 2009; 2017 | 458 | |||||
THE Royal Playa del Carmen | Playa del Carmen, Mexico | THE Royal (adults-only) | Playa | 1985; 2009 | 513 | |||||
Panama Jack Resorts Playa del Carmen | Playa del Carmen, Mexico | Panama Jack (all ages)(1) | Playa | 1996; 2006; 2012; 2017 | 287 | |||||
Secrets Capri | Riviera Maya, Mexico | Secrets (adults-only) | AMResorts | 2003 | 291 | |||||
Dreams Puerto Aventuras | Riviera Maya, Mexico | Dreams (all ages) | AMResorts | 1991; 2009 | 305 | |||||
Pacific Coast | ||||||||||
Hyatt Ziva Los Cabos | Cabo San Lucas, Mexico | Hyatt Ziva (all ages) | Playa | 2007; 2009; 2015 | 591 | |||||
Hyatt Ziva Puerto Vallarta | Puerto Vallarta, Mexico | Hyatt Ziva (all ages) | Playa | 1969; 1990; 2002; 2009; 2014; 2017 | 335 | |||||
Dominican Republic | ||||||||||
Dreams La Romana | La Romana, Dominican Republic | Dreams (all ages) | AMResorts | 1997; 2008 | 756 | |||||
Dreams Palm Beach | Punta Cana, Dominican Republic | Dreams (all ages) | AMResorts | 1994; 2008 | 500 | |||||
Dreams Punta Cana | Punta Cana, Dominican Republic | Dreams (all ages) | AMResorts | 2004 | 620 | |||||
Jamaica | ||||||||||
Hyatt Ziva Rose Hall (2) | Montego Bay, Jamaica | Hyatt Ziva (all ages) | Playa | 2000; 2014; 2017 | 364 | |||||
Hyatt Zilara Rose Hall | Montego Bay, Jamaica | Hyatt Zilara (adults-only) | Playa | 2000; 2014; 2017 | 344 | |||||
Hilton Rose Hall Resort & Spa | Montego Bay, Jamaica | Hilton (all ages) | Playa | 1974; 2008 | 495 | |||||
Jewel Runaway Bay Beach & Golf Resort | Runaway Bay, Jamaica | Jewel (all ages) | Playa | 1960; 1961; 1965; 2007; 2012 | 268 | |||||
Jewel Dunn’s River Beach Resort | Ocho Rios, Jamaica | Curio by Hilton (adults only) | Playa | 1957; 1970; 1980; 2010 | 250 | |||||
Jewel Paradise Cove Beach Resort & Spa | Runaway Bay, Jamaica | Curio by Hilton (adults only) | Playa | 2013 | 225 | |||||
Total Rooms Owned | 7,456 | |||||||||
Managed Resorts | ||||||||||
Sanctuary Cap Cana(3) | Punta Cana, Dominican Republic | Sanctuary (adults-only) | Playa | 2008; 2015 | 184 | |||||
Jewel Grande(3)(4) | Montego Bay, Jamaica | Sagicor (residences) | Playa | 2016; 2017 | 129 | |||||
Total Rooms Operated | 313 | |||||||||
Total Rooms Owned and Operated | 7,769 |
Three Months Ended June 30, | Increase / Decrease | |||||||||||||
2018 | 2017 | Change | % Change | |||||||||||
Revenue: | ($ in thousands) | |||||||||||||
Package | $ | 124,286 | $ | 118,453 | $ | 5,833 | 4.9 | % | ||||||
Non-package | 21,153 | 22,145 | (992 | ) | (4.5 | )% | ||||||||
Management fees | 55 | — | 55 | 100.0 | % | |||||||||
Cost reimbursements | 78 | — | 78 | 100.0 | % | |||||||||
Total revenue | 145,572 | 140,598 | 4,974 | 3.5 | % | |||||||||
Direct and selling, general and administrative expenses: | ||||||||||||||
Direct | 78,113 | 79,083 | (970 | ) | (1.2 | )% | ||||||||
Selling, general and administrative | 32,780 | 25,041 | 7,739 | 30.9 | % | |||||||||
Depreciation and amortization | 15,882 | 13,875 | 2,007 | 14.5 | % | |||||||||
Reimbursed costs | 78 | — | 78 | (100.0 | )% | |||||||||
Direct and selling, general and administrative expenses | 126,853 | 117,999 | 8,854 | 7.5 | % | |||||||||
Operating income | 18,719 | 22,599 | (3,880 | ) | (17.2 | )% | ||||||||
Interest expense | (5,632 | ) | (14,073 | ) | 8,441 | (60.0 | )% | |||||||
Loss on extinguishment of debt | — | (12,526 | ) | 12,526 | 100.0 | % | ||||||||
Other income (expense), net | 378 | (239 | ) | 617 | (258.2 | )% | ||||||||
Net income (loss) before tax | 13,465 | (4,239 | ) | 17,704 | (417.6 | )% | ||||||||
Income tax benefit (provision) | 3,356 | (6,291 | ) | 9,647 | (153.3 | )% | ||||||||
Net income (loss) | $ | 16,821 | $ | (10,530 | ) | $ | 27,351 | (259.7 | )% |
Three Months Ended June 30, | Increase / Decrease | |||||||||||||
2018 | 2017 | Change | % Change | |||||||||||
Occupancy | 83.8 | % | 81.9 | % | 1.9 | pts | 2.3 | % | ||||||
Net Package ADR | $ | 242.43 | $ | 252.68 | $ | (10.25 | ) | (4.1 | )% | |||||
Net Package RevPAR | 203.23 | 207.04 | (3.81 | ) | (1.8 | )% | ||||||||
($ in thousands) | ||||||||||||||
Net Package Revenue | $ | 120,665 | $ | 115,469 | $ | 5,196 | 4.5 | % | ||||||
Net Non-package Revenue | 21,033 | 21,946 | (913 | ) | (4.2 | )% | ||||||||
Management Fee Revenue | 55 | — | 55 | 100.0 | % | |||||||||
Total Net Revenue | 141,753 | 137,415 | 4,338 | 3.2 | % | |||||||||
Adjusted EBITDA | $ | 41,317 | $ | 41,019 | $ | 298 | 0.7 | % | ||||||
Adjusted EBITDA Margin | 29.1 | % | 29.9 | % | (0.8 | )pts | (2.7 | )% |
Three Months Ended June 30, | Increase / Decrease | |||||||||||||
2018 | 2017 | Change | % Change | |||||||||||
Occupancy | 83.4 | % | 81.9 | % | 1.5 | pts | 1.8 | % | ||||||
Net Package ADR | $ | 244.55 | $ | 252.68 | $ | (8.13 | ) | (3.2 | )% | |||||
Net Package RevPAR | 203.86 | 207.04 | (3.18 | ) | (1.5 | )% | ||||||||
($ in thousands) | ||||||||||||||
Net Package Revenue | $ | 113,721 | $ | 115,469 | $ | (1,748 | ) | (1.5 | )% | |||||
Net Non-package Revenue | 20,041 | 21,946 | (1,905 | ) | (8.7 | )% | ||||||||
Management Fee Revenue | 55 | — | 55 | 100.0 | % | |||||||||
Total Net Revenue | 133,817 | 137,415 | (3,598 | ) | (2.6 | )% | ||||||||
Adjusted EBITDA | $ | 38,530 | $ | 41,019 | $ | (2,489 | ) | (6.1 | )% | |||||
Adjusted EBITDA Margin | 28.8 | % | 29.9 | % | (1.1 | )pts | (3.7 | )% |
Three Months Ended June 30, | Increase/Decrease | |||||||||||||
2018 | 2017 | Change | % Change | |||||||||||
($ in thousands) | ||||||||||||||
Net Package Revenue | ||||||||||||||
Comparable Net Package Revenue | $ | 113,721 | $ | 115,469 | $ | (1,748 | ) | (1.5 | )% | |||||
Non-comparable Net Package Revenue | 6,944 | — | 6,944 | 100.0 | % | |||||||||
Net Package Revenue | 120,665 | 115,469 | 5,196 | 4.5 | % | |||||||||
Net Non-package Revenue | ||||||||||||||
Comparable Net Non-package Revenue | 20,041 | 21,946 | (1,905 | ) | (8.7 | )% | ||||||||
Non-comparable Net Non-package Revenue | 992 | — | 992 | 100.0 | % | |||||||||
Net Non-package Revenue | 21,033 | 21,946 | (913 | ) | (4.2 | )% | ||||||||
Management Fee Revenue | ||||||||||||||
Comparable Management Fee Revenue | 55 | — | 55 | 100.0 | % | |||||||||
Non-comparable Management Fee Revenue | — | — | — | 0.0 | % | |||||||||
Management Fee Revenue | 55 | — | 55 | 100.0 | % | |||||||||
Net Revenue: | ||||||||||||||
Comparable Net Revenue | 133,817 | 137,415 | (3,598 | ) | (2.6 | )% | ||||||||
Non-comparable Net Revenue | 7,936 | — | 7,936 | 100.0 | % | |||||||||
Total Net Revenue | 141,753 | 137,415 | 4,338 | 3.2 | % | |||||||||
Plus: compulsory tips | 3,741 | 3,183 | 558 | 17.5 | % | |||||||||
Cost reimbursements | 78 | — | 78 | 100.0 | % | |||||||||
Total revenue | $ | 145,572 | $ | 140,598 | $ | 4,974 | 3.5 | % |
Three Months Ended June 30, | Increase/Decrease | |||||||||||||
2018 | 2017 | Change | % Change | |||||||||||
Direct expenses | $ | 78,113 | $ | 79,083 | $ | (970 | ) | (1.2 | )% | |||||
Less: compulsory tips | 3,741 | 3,183 | 558 | 17.5 | % | |||||||||
Net direct expenses | $ | 74,372 | $ | 75,900 | $ | (1,528 | ) | (2.0 | )% |
Three Months Ended June 30, | Increase/Decrease | |||||||||||||
2018 | 2017 | Change | % Change | |||||||||||
Direct expenses: | ($ in thousands) | |||||||||||||
Food and beverages | $ | 19,064 | $ | 17,888 | $ | 1,176 | 6.6 | % | ||||||
Guest costs | 2,204 | 1,878 | 326 | 17.4 | % | |||||||||
Resort salary and wages | 28,302 | 27,148 | 1,154 | 4.3 | % | |||||||||
Repairs and maintenance | 2,836 | 3,637 | (801 | ) | (22.0 | )% | ||||||||
Utility expenses | 5,078 | 7,594 | (2,516 | ) | (33.1 | )% | ||||||||
Licenses and property taxes | 700 | 628 | 72 | 11.5 | % | |||||||||
Incentive and management fees | 2,721 | 3,085 | (364 | ) | (11.8 | )% | ||||||||
Hyatt fees | 4,594 | 3,409 | 1,185 | 34.8 | % | |||||||||
Panama Jack fees | 150 | — | 150 | 100.0 | % | |||||||||
Hilton fees | 248 | — | 248 | 100.0 | % | |||||||||
Other supplies and expense amortization | 1,808 | 1,037 | 771 | 74.3 | % | |||||||||
Transportation and travel expenses | 795 | 1,053 | (258 | ) | (24.5 | )% | ||||||||
Laundry and cleaning expenses | 1,183 | 675 | 508 | 75.3 | % | |||||||||
Property and equipment rental expense | 925 | 1,155 | (230 | ) | (19.9 | )% | ||||||||
Entertainment expenses | 1,799 | 937 | 862 | 92.0 | % | |||||||||
Office supplies | 181 | 979 | (798 | ) | (81.5 | )% | ||||||||
Other operational expenses | 1,784 | 4,797 | (3,013 | ) | (62.8 | )% | ||||||||
Total net direct expenses | $ | 74,372 | $ | 75,900 | $ | (1,528 | ) | (2.0 | )% |
Six Months Ended June 30, | Increase / Decrease | |||||||||||||
2018 | 2017 | Change | % Change | |||||||||||
Revenue: | ($ in thousands) | |||||||||||||
Package | $ | 278,994 | $ | 271,409 | $ | 7,585 | 2.8 | % | ||||||
Non-package | 42,952 | 43,256 | (304 | ) | (0.7 | )% | ||||||||
Management fees | 351 | — | 351 | 100.0 | % | |||||||||
Cost reimbursements | 122 | — | 122 | 100.0 | % | |||||||||
Total revenue | 322,419 | 314,665 | 7,754 | 2.5 | % | |||||||||
Direct and selling, general and administrative expenses: | ||||||||||||||
Direct | 159,169 | 155,760 | 3,409 | 2.2 | % | |||||||||
Selling, general and administrative | 59,253 | 53,705 | 5,548 | 10.3 | % | |||||||||
Depreciation and amortization | 31,571 | 26,285 | 5,286 | 20.1 | % | |||||||||
Reimbursed costs | 122 | — | 122 | 100.0 | % | |||||||||
Gain on insurance proceeds | (1,521 | ) | — | (1,521 | ) | 100.0 | % | |||||||
Direct and selling, general and administrative expenses | 248,594 | 235,750 | 12,844 | 5.4 | % | |||||||||
Operating income | 73,825 | 78,915 | (5,090 | ) | (6.4 | )% | ||||||||
Interest expense | (27,514 | ) | (28,088 | ) | 574 | (2.0 | )% | |||||||
Loss on extinguishment of debt | — | (12,526 | ) | 12,526 | 100.0 | % | ||||||||
Other expense, net | (1,446 | ) | (1,313 | ) | (133 | ) | 10.1 | % | ||||||
Net income before tax | 44,865 | 36,988 | 7,877 | 21.3 | % | |||||||||
Income tax provision | (6,227 | ) | (19,879 | ) | 13,652 | (68.7 | )% | |||||||
Net income | $ | 38,638 | $ | 17,109 | $ | 21,529 | 125.8 | % |
Six Months Ended June 30, | Increase / Decrease | |||||||||||||
2018 | 2017 | Change | % Change | |||||||||||
Occupancy | 85.6 | % | 84.7 | % | 0.9 | pts | 1.1 | % | ||||||
Net Package ADR | $ | 276.86 | $ | 281.94 | $ | (5.08 | ) | (1.8 | )% | |||||
Net Package RevPAR | 237.08 | 238.71 | (1.63 | ) | (0.7 | )% | ||||||||
($ in thousands) | ||||||||||||||
Net Package Revenue | $ | 271,555 | $ | 265,092 | $ | 6,463 | 2.4 | % | ||||||
Net Non-package Revenue | 42,999 | 42,833 | 166 | 0.4 | % | |||||||||
Management Fee Revenue | 351 | — | 351 | 100.0 | % | |||||||||
Total Net Revenue | 314,905 | 307,925 | 6,980 | 2.3 | % | |||||||||
Adjusted EBITDA | $ | 115,876 | $ | 115,492 | $ | 384 | 0.3 | % | ||||||
Adjusted EBITDA Margin | 36.8 | % | 37.5 | % | (0.7 | )pts | (1.9 | )% |
Six Months Ended June 30, | Increase / Decrease | |||||||||||||
2018 | 2017 | Change | % Change | |||||||||||
Occupancy | 85.5 | % | 84.7 | % | 0.8 | pts | 0.9 | % | ||||||
Net Package ADR | $ | 279.09 | $ | 281.94 | $ | (2.85 | ) | (1.0 | )% | |||||
Net Package RevPAR | 238.49 | 238.71 | (0.22 | ) | (0.1 | )% | ||||||||
($ in thousands) | ||||||||||||||
Net Package Revenue | $ | 264,611 | $ | 265,092 | $ | (481 | ) | (0.2 | )% | |||||
Net Non-package Revenue | 42,007 | 42,833 | (826 | ) | (1.9 | )% | ||||||||
Management Fee Revenue | 351 | — | 351 | 100.0 | % | |||||||||
Total Net Revenue | 306,969 | 307,925 | (956 | ) | (0.3 | )% | ||||||||
Adjusted EBITDA | $ | 113,091 | $ | 115,492 | $ | (2,401 | ) | (2.1 | )% | |||||
Adjusted EBITDA Margin | 36.8 | % | 37.5 | % | (0.7 | )pts | (1.9 | )% |
Six Months Ended June 30, | Increase/Decrease | |||||||||||||
2018 | 2017 | Change | % Change | |||||||||||
($ in thousands) | ||||||||||||||
Net Package Revenue | ||||||||||||||
Comparable Net Package Revenue | $ | 264,611 | $ | 265,092 | $ | (481 | ) | (0.2 | )% | |||||
Non-comparable Net Package Revenue | 6,944 | — | 6,944 | 100.0 | % | |||||||||
Net Package Revenue | 271,555 | 265,092 | 6,463 | 2.4 | % | |||||||||
Net Non-package Revenue | ||||||||||||||
Comparable Net Non-package Revenue | 42,007 | 42,833 | (826 | ) | (1.9 | )% | ||||||||
Non-comparable Net Non-package Revenue | 992 | — | 992 | 100.0 | % | |||||||||
Net Non-package Revenue | 42,999 | 42,833 | 166 | 0.4 | % | |||||||||
Management Fee Revenue | ||||||||||||||
Comparable Management Fee Revenue | 351 | — | 351 | 100.0 | % | |||||||||
Non-comparable Management Fee Revenue | — | — | — | 0.0 | % | |||||||||
Management Fee Revenue | 351 | — | 351 | 100.0 | % | |||||||||
Net Revenue: | ||||||||||||||
Comparable Net Revenue | 306,969 | 307,925 | (956 | ) | (0.3 | )% | ||||||||
Non-comparable Net Revenue | 7,936 | — | 7,936 | 100.0 | % | |||||||||
Total Net Revenue | 314,905 | 307,925 | 6,980 | 2.3 | % | |||||||||
Plus: compulsory tips | 7,392 | 6,740 | 652 | 9.7 | % | |||||||||
Cost reimbursements | 122 | — | 122 | 100.0 | % | |||||||||
Total revenue | $ | 322,419 | $ | 314,665 | $ | 7,754 | 2.5 | % |
Six Months Ended June 30, | Increase/Decrease | |||||||||||||
2018 | 2017 | Change | % Change | |||||||||||
Direct expenses | $ | 159,169 | $ | 155,760 | $ | 3,409 | 2.2 | % | ||||||
Less: tips | 7,392 | 6,740 | 652 | 9.7 | % | |||||||||
Net direct expenses | $ | 151,777 | $ | 149,020 | $ | 2,757 | 1.9 | % |
Six Months Ended June 30, | Increase/Decrease | |||||||||||||
2018 | 2017 | Change | % Change | |||||||||||
Direct expenses: | ($ in thousands) | |||||||||||||
Food and beverages | $ | 38,392 | $ | 37,364 | $ | 1,028 | 2.8 | % | ||||||
Guest costs | 2,204 | 1,971 | 233 | 11.8 | % | |||||||||
Salaries and wages | 54,863 | 51,127 | 3,736 | 7.3 | % | |||||||||
Repairs and maintenance | 6,332 | 7,026 | (694 | ) | (9.9 | )% | ||||||||
Utilities | 12,312 | 14,625 | (2,313 | ) | (15.8 | )% | ||||||||
Licenses and property taxes | 1,494 | 1,231 | 263 | 21.4 | % | |||||||||
Incentive and management fees | 6,887 | 6,980 | (93 | ) | (1.3 | )% | ||||||||
Hyatt fees | 9,045 | 7,774 | 1,271 | 16.3 | % | |||||||||
Panama Jack fees | 355 | — | 355 | (100.0 | )% | |||||||||
Hilton fees | 248 | — | 248 | (100.0 | )% | |||||||||
Other supplies and expense amortization | 2,613 | 1,988 | 625 | 31.4 | % | |||||||||
Transportation and travel expenses | 2,024 | 2,137 | (113 | ) | (5.3 | )% | ||||||||
Laundry and cleaning expenses | 1,837 | 1,293 | 544 | 42.1 | % | |||||||||
Property and equipment rental expense | 2,512 | 2,511 | 1 | 0.0 | % | |||||||||
Entertainment expenses | 2,648 | 1,824 | 824 | 45.2 | % | |||||||||
Office supplies | 1,142 | 2,149 | (1,007 | ) | (46.9 | )% | ||||||||
Other operational expenses | 6,869 | 9,020 | (2,151 | ) | (23.8 | )% | ||||||||
Total net direct expenses | $ | 151,777 | $ | 149,020 | $ | 2,757 | 1.9 | % |
• | Net Package Revenue |
• | Net Non-package Revenue |
• | Net Revenue |
• | Management Fee Revenue |
• | Cost Reimbursements |
• | Total Net Revenue |
• | Occupancy |
• | Net Package ADR |
• | Net Package RevPAR |
• | Adjusted EBITDA |
• | Adjusted EBITDA Margin |
• | Comparable Non-U.S. GAAP Measures |
• | Other expense, net |
• | Impairment loss |
• | Pre-opening expense |
• | Transaction expenses |
• | Severance expense |
• | Other tax expense |
• | Gain on property damage insurance proceeds |
• | Share-based compensation |
• | Loss on extinguishment of debt |
• | Non-service cost components of net periodic pension cost (benefit) |
• | Other items which may include, but are not limited to the following: management contract termination fees; gains or losses from legal settlements; repairs from hurricanes and tropical storms; and Jamaica delayed opening accrual reversals. |
Three Months Ended June 30, | Increase / Decrease | |||||||||||||
2018 | 2017 | Change | % Change | |||||||||||
Net Revenue: | ($ in thousands) | |||||||||||||
Yucatan Peninsula | $ | 63,667 | $ | 68,927 | $ | (5,260 | ) | (7.6 | )% | |||||
Pacific Coast | 19,815 | 23,073 | (3,258 | ) | (14.1 | )% | ||||||||
Dominican Republic | 31,496 | 30,938 | 558 | 1.8 | % | |||||||||
Jamaica | 26,729 | 14,475 | 12,254 | 84.7 | % | |||||||||
Segment Net Revenue | 141,707 | 137,413 | 4,294 | 3.1 | % | |||||||||
Other | (9 | ) | 2 | (11 | ) | (550.0 | )% | |||||||
Management fees | 55 | — | 55 | 100.0 | % | |||||||||
Total Net Revenue | $ | 141,753 | $ | 137,415 | $ | 4,338 | 3.2 | % |
Three Months Ended June 30, | Increase / Decrease | |||||||||||||
2018 | 2017 | Change | % Change | |||||||||||
Adjusted EBITDA: | ($ in thousands) | |||||||||||||
Yucatan Peninsula | $ | 25,726 | $ | 29,176 | $ | (3,450 | ) | (11.8 | )% | |||||
Pacific Coast | 6,550 | 9,212 | (2,662 | ) | (28.9 | )% | ||||||||
Dominican Republic | 9,586 | 8,364 | 1,222 | 14.6 | % | |||||||||
Jamaica | 8,089 | 2,268 | 5,821 | 256.7 | % | |||||||||
Segment Adjusted EBITDA | 49,951 | 49,020 | 931 | 1.9 | % | |||||||||
Other corporate - unallocated | (8,689 | ) | (8,001 | ) | (688 | ) | 8.6 | % | ||||||
Management fees | 55 | — | 55 | 100.0 | % | |||||||||
Total Adjusted EBITDA | $ | 41,317 | $ | 41,019 | $ | 298 | 0.7 | % |
Three Months Ended June 30, | Increase / Decrease | |||||||||||||
2018 | 2017 | Change | % Change | |||||||||||
Occupancy | 86.2 | % | 88.7 | % | (2.5 | )pts | (2.8 | )% | ||||||
Net Package ADR | $ | 263.11 | $ | 272.45 | $ | (9.34 | ) | (3.4 | )% | |||||
Net Package RevPAR | 226.91 | 241.66 | (14.75 | ) | (6.1 | )% | ||||||||
($ in thousands) | ||||||||||||||
Net Package Revenue | $ | 55,917 | $ | 59,526 | $ | (3,609 | ) | (6.1 | )% | |||||
Net Non-package Revenue | 7,750 | 9,401 | (1,651 | ) | (17.6 | )% | ||||||||
Net Revenue | 63,667 | 68,927 | (5,260 | ) | (7.6 | )% | ||||||||
Adjusted Resort EBITDA | $ | 25,726 | $ | 29,176 | $ | (3,450 | ) | (11.8 | )% | |||||
Adjusted Resort EBITDA Margin | 40.4 | % | 42.3 | % | (1.9 | )pts | (4.5 | )% |
Three Months Ended June 30, | Increase / Decrease | |||||||||||||
2018 | 2017 | Change | % Change | |||||||||||
Occupancy | 76.6 | % | 73.4 | % | 3.2 | pts | 4.4 | % | ||||||
Net Package ADR | $ | 258.38 | $ | 301.17 | $ | (42.79 | ) | (14.2 | )% | |||||
Net Package RevPAR | 197.98 | 221.15 | (23.17 | ) | (10.5 | )% | ||||||||
($ in thousands) | ||||||||||||||
Net Package Revenue | $ | 16,683 | $ | 18,635 | $ | (1,952 | ) | (10.5 | )% | |||||
Net Non-package Revenue | 3,132 | 4,438 | (1,306 | ) | (29.4 | )% | ||||||||
Net Revenue | 19,815 | 23,073 | (3,258 | ) | (14.1 | )% | ||||||||
Adjusted Resort EBITDA | $ | 6,550 | $ | 9,212 | $ | (2,662 | ) | (28.9 | )% | |||||
Adjusted Resort EBITDA Margin | 33.1 | % | 39.9 | % | (6.8 | )pts | (17.0 | )% |
Three Months Ended June 30, | Increase / Decrease | |||||||||||||
2018 | 2017 | Change | % Change | |||||||||||
Occupancy | 85.4 | % | 82.2 | % | 3.2 | pts | 3.9 | % | ||||||
Net Package ADR | $ | 175.98 | $ | 180.64 | $ | (4.66 | ) | (2.6 | )% | |||||
Net Package RevPAR | 150.31 | 148.46 | 1.85 | 1.2 | % | |||||||||
($ in thousands) | ||||||||||||||
Net Package Revenue | $ | 25,661 | $ | 25,344 | $ | 317 | 1.3 | % | ||||||
Net Non-package Revenue | 5,835 | 5,594 | 241 | 4.3 | % | |||||||||
Net Revenue | 31,496 | 30,938 | 558 | 1.8 | % | |||||||||
Adjusted Resort EBITDA | $ | 9,586 | $ | 8,364 | $ | 1,222 | 14.6 | % | ||||||
Adjusted Resort EBITDA Margin | 30.4 | % | 27.0 | % | 3.4 | pts | 12.6 | % |
Three Months Ended June 30, | Increase / Decrease | |||||||||||||
2018 | 2017 | Change | % Change | |||||||||||
Occupancy | 81.1 | % | 64.4 | % | 16.7 | pts | 25.9 | % | ||||||
Net Package ADR | $ | 299.40 | $ | 329.47 | $ | (30.07 | ) | (9.1 | )% | |||||
Net Package RevPAR | 242.68 | 212.05 | 30.63 | 14.4 | % | |||||||||
($ in thousands) | ||||||||||||||
Net Package Revenue | $ | 22,404 | $ | 11,964 | $ | 10,440 | 87.3 | % | ||||||
Net Non-Package Revenue | 4,325 | 2,511 | 1,814 | 72.2 | % | |||||||||
Total Net Revenue | 26,729 | 14,475 | 12,254 | 84.7 | % | |||||||||
Adjusted Resort EBITDA | $ | 8,089 | $ | 2,268 | $ | 5,821 | 256.7 | % | ||||||
Adjusted Resort EBITDA Margin | 30.3 | % | 15.7 | % | 14.6 | pts | 93.0 | % |
Three Months Ended June 30, | Increase / Decrease | |||||||||||||
2018 | 2017 | Change | % Change | |||||||||||
Occupancy | 74.6 | % | 64.4 | % | 10.2 | pts | 15.8 | % | ||||||
Net Package ADR | $ | 367.11 | $ | 329.47 | $ | 37.64 | 11.4 | % | ||||||
Net Package RevPAR | 274.02 | 212.05 | 61.97 | 29.2 | % | |||||||||
($ in thousands) | ||||||||||||||
Net Package Revenue | $ | 15,460 | $ | 11,964 | $ | 3,496 | 29.2 | % | ||||||
Net Non-Package Revenue | 3,333 | 2,511 | 822 | 32.7 | % | |||||||||
Total Net Revenue | 18,793 | 14,475 | 4,318 | 29.8 | % | |||||||||
Adjusted Resort EBITDA | $ | 5,304 | $ | 2,268 | $ | 3,036 | 133.9 | % | ||||||
Adjusted Resort EBITDA Margin | 28.2 | % | 15.7 | % | 12.5 | pts | 79.6 | % |
Six Months Ended June 30, | Increase / Decrease | |||||||||||||
2018 | 2017 | Change | % Change | |||||||||||
Net Revenue: | ($ in thousands) | |||||||||||||
Yucatan Peninsula | $ | 142,938 | $ | 149,675 | (6,737 | ) | (4.5 | )% | ||||||
Pacific Coast | 48,870 | 51,505 | (2,635 | ) | (5.1 | )% | ||||||||
Dominican Republic | 71,913 | 70,796 | 1,117 | 1.6 | % | |||||||||
Jamaica | 50,490 | 35,947 | 14,543 | 40.5 | % | |||||||||
Segment Net Revenue | 314,211 | 307,923 | 6,288 | 2.0 | % | |||||||||
Other(1) | 343 | 2 | 341 | 17,050.0 | % | |||||||||
Management fees | 351 | — | 351 | 100.0 | % | |||||||||
Total Net Revenue | $ | 314,905 | $ | 307,925 | $ | 6,980 | 2.3 | % |
Six Months Ended June 30, | Increase / Decrease | |||||||||||||
2018 | 2017 | Change | % Change | |||||||||||
Adjusted EBITDA: | ($ in thousands) | |||||||||||||
Yucatan Peninsula | $ | 65,330 | $ | 72,246 | $ | (6,916 | ) | (9.6 | )% | |||||
Pacific Coast | 20,458 | 23,484 | (3,026 | ) | (12.9 | )% | ||||||||
Dominican Republic | 28,013 | 25,803 | 2,210 | 8.6 | % | |||||||||
Jamaica | 18,733 | 9,769 | 8,964 | 91.8 | % | |||||||||
Segment Adjusted EBITDA | 132,534 | 131,302 | 1,232 | 0.9 | % | |||||||||
Other corporate - unallocated | (17,009 | ) | (15,810 | ) | (1,199 | ) | 7.6 | % | ||||||
Management fees | 351 | — | 351 | 100.0 | % | |||||||||
Total Adjusted EBITDA | $ | 115,876 | $ | 115,492 | $ | 384 | 0.3 | % |
Six Months Ended June 30, | Increase / Decrease | |||||||||||||
2018 | 2017 | Change | % Change | |||||||||||
Occupancy | 88.3 | % | 89.7 | % | (1.4 | )pts | (1.6 | )% | ||||||
Net Package ADR | $ | 293.70 | $ | 299.26 | $ | (5.56 | ) | (1.9 | )% | |||||
Net Package RevPAR | 259.25 | 268.34 | (9.09 | ) | (3.4 | )% | ||||||||
($ in thousands) | ||||||||||||||
Net Package Revenue | $ | 127,071 | $ | 131,785 | $ | (4,714 | ) | (3.6 | )% | |||||
Net Non-Package Revenue | 15,867 | 17,890 | (2,023 | ) | (11.3 | )% | ||||||||
Total Net Revenue | 142,938 | 149,675 | (6,737 | ) | (4.5 | )% | ||||||||
Adjusted Resort EBITDA | $ | 65,330 | $ | 72,246 | $ | (6,916 | ) | (9.6 | )% | |||||
Adjusted Resort EBITDA Margin | 45.7 | % | 48.3 | % | (2.6 | )pts | (5.4 | )% |
Six Months Ended June 30, | Increase / Decrease | |||||||||||||
2018 | 2017 | Change | % Change | |||||||||||
Occupancy | 78.9 | % | 75.5 | % | 3.4 | pts | 4.5 | % | ||||||
Net Package ADR | $ | 308.32 | $ | 335.97 | $ | (27.65 | ) | (8.2 | )% | |||||
Net Package RevPAR | 243.16 | 253.71 | (10.55 | ) | (4.2 | )% | ||||||||
($ in thousands) | ||||||||||||||
Net Package Revenue | $ | 40,755 | $ | 42,524 | $ | (1,769 | ) | (4.2 | )% | |||||
Net Non-Package Revenue | 8,115 | 8,981 | (866 | ) | (9.6 | )% | ||||||||
Total Net Revenue | 48,870 | 51,505 | (2,635 | ) | (5.1 | )% | ||||||||
Adjusted Resort EBITDA | $ | 20,458 | $ | 23,484 | $ | (3,026 | ) | (12.9 | )% | |||||
Adjusted Resort EBITDA Margin | 41.9 | % | 45.6 | % | (3.7 | )pts | (8.1 | )% |
Six Months Ended June 30, | Increase / Decrease | |||||||||||||
2018 | 2017 | Change | % Change | |||||||||||
Occupancy | 87.4 | % | 86.0 | % | 1.4 | pts | 1.6 | % | ||||||
Net Package ADR | $ | 205.72 | $ | 206.74 | $ | (1.02 | ) | (0.5 | )% | |||||
Net Package RevPAR | 179.79 | 177.72 | 2.07 | 1.2 | % | |||||||||
($ in thousands) | ||||||||||||||
Net Package Revenue | $ | 61,049 | $ | 60,345 | $ | 704 | 1.2 | % | ||||||
Net Non-Package Revenue | 10,864 | 10,451 | 413 | 4.0 | % | |||||||||
Total Net Revenue | 71,913 | 70,796 | 1,117 | 1.6 | % | |||||||||
Adjusted Resort EBITDA | $ | 28,013 | $ | 25,803 | $ | 2,210 | 8.6 | % | ||||||
Adjusted Resort EBITDA Margin | 39.0 | % | 36.4 | % | 2.6 | pts | 7.1 | % |
Six Months Ended June 30, | Increase / Decrease | |||||||||||||
2018 | 2017 | Change | % Change | |||||||||||
Occupancy | 80.5 | % | 72.5 | % | 8.0 | pts | 11.0 | % | ||||||
Net Package ADR | $ | 357.92 | $ | 373.88 | $ | (15.96 | ) | (4.3 | )% | |||||
Net Package RevPAR | 288.14 | 271.23 | 16.91 | 6.2 | % | |||||||||
($ in thousands) | ||||||||||||||
Net Package Revenue | $ | 42,680 | $ | 30,437 | $ | 12,243 | 40.2 | % | ||||||
Net Non-Package Revenue | 7,810 | 5,510 | 2,300 | 41.7 | % | |||||||||
Total Net Revenue | 50,490 | 35,947 | 14,543 | 40.5 | % | |||||||||
Adjusted Resort EBITDA | $ | 18,733 | $ | 9,769 | $ | 8,964 | 91.8 | % | ||||||
Adjusted Resort EBITDA Margin | 37.1 | % | 27.2 | % | 9.9 | pts | 36.4 | % |
Six Months Ended June 30, | Increase / Decrease | |||||||||||||
2018 | 2017 | Change | % Change | |||||||||||
Occupancy | 77.1 | % | 72.5 | % | 4.6 | pts | 6.3 | % | ||||||
Net Package ADR | $ | 413.02 | $ | 373.88 | $ | 39.14 | 10.5 | % | ||||||
Net Package RevPAR | 318.44 | 271.23 | 47.21 | 17.4 | % | |||||||||
($ in thousands) | ||||||||||||||
Net Package Revenue | $ | 35,736 | $ | 30,437 | $ | 5,299 | 17.4 | % | ||||||
Net Non-Package Revenue | 6,818 | 5,510 | 1,308 | 23.7 | % | |||||||||
Total Net Revenue | 42,554 | 35,947 | 6,607 | 18.4 | % | |||||||||
Adjusted Resort EBITDA | 15,947 | 9,769 | 6,178 | 63.2 | % | |||||||||
Adjusted Resort EBITDA Margin | 37.5 | % | 27.2 | % | 10.3 | pts | 37.9 | % |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Net income (loss) | $ | 16,821 | $ | (10,530 | ) | $ | 38,638 | $ | 17,109 | ||||||
Interest expense | 5,632 | 14,073 | 27,514 | 28,088 | |||||||||||
Income tax (benefit) provision | (3,356 | ) | 6,291 | 6,227 | 19,879 | ||||||||||
Depreciation and amortization | 15,882 | 13,875 | 31,571 | 26,285 | |||||||||||
EBITDA | 34,979 | 23,709 | 103,950 | 91,361 | |||||||||||
Other (income) expense, net (a) | (378 | ) | 239 | 1,446 | 1,313 | ||||||||||
Share-based compensation | 2,104 | 960 | 3,890 | 960 | |||||||||||
Loss on extinguishment of debt | — | 12,526 | — | 12,526 | |||||||||||
Transaction expense (b) | 3,887 | 3,300 | 6,231 | 9,300 | |||||||||||
Severance expense | — | 442 | — | 442 | |||||||||||
Other tax expense (c) | 427 | 247 | 858 | 423 | |||||||||||
Jamaica delayed opening accrual reversal (d) | — | (111 | ) | (342 | ) | (111 | ) | ||||||||
Non-service cost components of net periodic pension benefit (cost) (e) | 298 | (293 | ) | (157 | ) | (722 | ) | ||||||||
Adjusted EBITDA | 41,317 | 41,019 | 115,876 | 115,492 | |||||||||||
Corporate expenses | 8,689 | 8,001 | 17,009 | 15,810 | |||||||||||
Management fee income | (55 | ) | — | (351 | ) | — | |||||||||
Owned Resort EBITDA | 49,951 | 49,020 | 132,534 | 131,302 | |||||||||||
Less: Non-comparable Adjusted Resort EBITDA(f) | 2,785 | — | 2,785 | — | |||||||||||
Comparable Adjusted Resort EBITDA | $ | 47,166 | $ | 49,020 | $ | 129,749 | $ | 131,302 |
(a) | Represents changes in foreign exchange and other miscellaneous expenses or income. |
(b) | Represents expenses incurred in connection with corporate initiatives, such as: debt refinancing costs; other capital raising efforts including the business combination with Pace in 2017; the redesign and build-out of our internal controls and strategic initiatives, such as possible expansion into new markets. |
(c) | Relates primarily to a Dominican Republic asset/revenue tax, which is an alternative tax to income tax in the Dominican Republic. We eliminate this expense from Adjusted EBITDA because it is substantially similar to the income tax provision we eliminate from our calculation of EBITDA. |
(d) | Represents a reversal on an expense accrual recorded in 2014 related to our future stay obligations provided to guests affected by the delayed opening of Hyatt Ziva and Hyatt Zilara Rose Hall. This reversal concluded in the first quarter of 2018. |
(e) | Represents the non-service cost components of net periodic pension benefit (cost) recorded within other (income) expense, net in the Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). Previously, these expenses were presented within direct expense. We include these benefits (costs) for the purposes of calculating Adjusted EBITDA as they are considered part of our ongoing resort operations. |
(f) | Adjusted EBITDA for Sagicor Hotels. |
Six Months Ended June 30, | |||||||
2018 | 2017 | ||||||
($ in thousands) | |||||||
Net cash provided by operating activities | $ | 68,440 | $ | 60,719 | |||
Net cash used in investing activities | $ | (134,504 | ) | $ | (12,834 | ) | |
Net cash provided by financing activities | $ | 94,699 | $ | 114,574 |
• | Acquisition of a portfolio of all-inclusive resorts and adjacent developable land sites from Sagicor of $93.1 million |
• | Purchases of property, plant and equipment of $40.1 million |
• | Purchase of intangibles of $1.3 million |
• | Purchases of property, plant and equipment of $12.7 million |
Six Months Ended June 30, | |||||||
2018 | 2017 | ||||||
($ in thousands) | |||||||
Development Capital Expenditures | |||||||
Hyatt Ziva and Zilara Rose Hall | $ | 1,157 | $ | 3,752 | |||
Panama Jack Resorts Cancun | 2,234 | — | |||||
Hyatt Zilara Cancun | 605 | 806 | |||||
Hyatt Ziva Puerto Vallarta | 614 | 470 | |||||
Panama Jack Resorts Playa del Carmen | 759 | — | |||||
Hyatt Ziva and Zilara Cap Cana | 29,285 | — | |||||
Total Development Capital Expenditures | 34,654 | 5,028 | |||||
Maintenance Capital Expenditures (1) | 5,404 | 7,645 | |||||
Total Capital Expenditures | $ | 40,058 | $ | 12,673 |
(1) | Typically, maintenance capital expenditures equate to approximately 3% to 4% of Total Net Revenue. |
• | Principal payments on our Term Loan of $4.8 million |
• | Proceeds from debt issuance of $99.5 million |
• | Principal payments on our existing term loan of $362.8 million and our Senior Notes due 2020 of $121.6 million |
• | Proceeds from our term loan of $528.7 million, net of a $1.3 million discount |
• | Payments of our deferred consideration to the Real Shareholder of $1.3 million |
• | Recapitalization as part of the Pace Business Combination of $79.7 million |
Less than 1 Year(1) | Due in 1 to 3 years | Due in 3 to 5 years | Due in Over 5 years | Total | ||||||||||||||||
($ in thousands) | ||||||||||||||||||||
Revolving Credit Facility (2) | $ | 259 | $ | 1,015 | $ | 668 | $ | — | $ | 1,942 | ||||||||||
Term Loan principal payments | 5,050 | 20,200 | 20,200 | 956,148 | 1,001,598 | |||||||||||||||
Term Loan interest payments (3) | 27,840 | 111,939 | 109,815 | 71,906 | 321,500 | |||||||||||||||
Cap Cana land purchase obligation (4) | — | 10,625 | — | — | 10,625 | |||||||||||||||
Operating lease obligations | 683 | 1,864 | 1,148 | 157 | 3,852 | |||||||||||||||
Total contractual obligations | $ | 33,832 | $ | 145,643 | $ | 131,831 | $ | 1,028,211 | $ | 1,339,517 |
(1) | The period less than 1 year represents remaining obligations in 2018. |
(2) | The interest commitment on our Revolving Credit Facility is calculated based on the contractual commitment fee of 0.5% applied to the undrawn balance of $100.0 million as we had no outstanding balance on our Revolving Credit Facility as of June 30, 2018. |
(3) | The interest commitment on our Term Loan is calculated based on LIBOR plus 275 basis points with a 1% LIBOR floor and the estimated net settlement of the related interest rate swaps. Projected interest rates range from 4.84% to 5.62%. Payments were calculated using the average forecasted one-month forward-looking LIBOR curve. |
(4) | The remaining $10.6 million of the purchase price is due on the earlier of (i) two years from the beginning of construction or (ii) the opening of the Hyatt Zilara Cap Cana and Hyatt Ziva Cap Cana resorts. |
(5) | We are unable to reasonably estimate the timing of future cash flows of our pension obligation of $4.9 million and have excluded this from the table above. |
• | Our information technology controls, including system access, change management, and segregation of duties are not sufficiently designed and implemented to address certain information technology risks and, as a result, could expose our systems and data to unauthorized use or alteration. |
Exhibit Number | Exhibit Description | |
2.1 | ||
2.2 | ||
3.1 | ||
10.1 | ||
10.2 | ||
31.1 | ||
31.2 | ||
32 | ||
101 | The following materials from Playa Hotels & Resorts N.V.’s Quarterly Report on Form 10-Q for the period ended March 31, 2018, formatted in XBRL (eXtensible Business Reporting Language): (i) Condensed Consolidated Balance Sheets, (ii) Condensed Consolidated Statements of Operations and Comprehensive Income, (iii) Condensed Consolidated Statements of Cumulative Redeemable Preferred Shares, Shareholders' Equity and Accumulated Other Comprehensive Loss, (iv) Condensed Consolidated Statements of Cash Flows, and (v) the notes to the Condensed Consolidated Financial Statements |
Playa Hotels & Resorts N.V. | |||
Date: | August 6, 2018 | By: | /s/ Bruce D. Wardinski |
Bruce D. Wardinski | |||
Chairman and Chief Executive Officer | |||
(Principal Executive Officer) |
Playa Hotels & Resorts N.V. | |||
Date: | August 6, 2018 | By: | /s/ Ryan Hymel |
Ryan Hymel | |||
Chief Financial Officer | |||
(Principal Financial Officer) |
Date: | August 6, 2018 | /s/ Bruce D. Wardinski | |
Bruce D. Wardinski | |||
Chairman and Chief Executive Officer | |||
(Principal Executive Officer) |
Date: | August 6, 2018 | /s/ Ryan Hymel | |
Ryan Hymel | |||
Chief Financial Officer | |||
(Principal Financial Officer) |
Date: | August 6, 2018 | /s/ Bruce D. Wardinski | |
Bruce D. Wardinski | |||
Chairman and Chief Executive Officer | |||
(Principal Executive Officer) |
Date: | August 6, 2018 | /s/ Ryan Hymel | |
Ryan Hymel | |||
Chief Financial Officer | |||
(Principal Financial Officer) |
Document and Entity Information - shares |
6 Months Ended | |
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Jun. 30, 2018 |
Aug. 02, 2018 |
|
Document and Entity Information [Abstract] | ||
Entity Registrant Name | Playa Hotels & Resorts N.V. | |
Entity Central Index Key | 0001692412 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2018 | |
Document Fiscal Year Focus | 2018 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 130,478,993 |
Condensed Consolidated Balance Sheets (Parenthetical) - € / shares |
Jun. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Ordinary shares, par value (in Euros per share) | € 0.10 | € 0.10 |
Ordinary shares, authorized (in shares) | 500,000,000 | 500,000,000 |
Ordinary shares, issued (in shares) | 130,486,360 | 110,305,064 |
Ordinary shares, outstanding (in shares) | 130,478,993 | 110,297,697 |
Treasury shares, at cost (in shares) | 7,367 | 7,367 |
Organization, operations and basis of presentation |
6 Months Ended |
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Jun. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization, operations and basis of presentation | Organization, operations and basis of presentation Background Playa Hotels & Resorts N.V. (“Playa” or the “Company”) is a leading owner, operator and developer of all-inclusive resorts in prime beachfront locations in popular vacation destinations. We own and/or manage a portfolio of 20 resorts located in Mexico, the Dominican Republic and Jamaica. We currently manage 13 of the 18 resorts we own, as well as two resorts owned by third parties. Unless otherwise indicated or the context requires otherwise, references in our condensed consolidated financial statements (our “Condensed Consolidated Financial Statements”) to “we,” “our,” “us” and similar expressions refer to Playa and its subsidiaries. Basis of preparation, presentation and measurement On June 1, 2018, we completed a business combination with the Sagicor Parties (as defined in Note 4), which caused us to evaluate and modify the presentation of our reportable segments. See Note 4 and Note 19 for additional discussion regarding the business combination and our reportable segments, respectively. Our Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information. Certain information and disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. Accordingly, these unaudited interim Condensed Consolidated Financial Statements should be read in conjunction with the Company’s Consolidated Financial Statements as of and for the year ended December 31, 2017, included in our Annual Report on Form 10-K for the year ended December 31, 2017, filed with the Securities and Exchange Commission (the “SEC”) on March 1, 2018. In our opinion, the unaudited interim Condensed Consolidated Financial Statements have been prepared on the same basis as the annual Consolidated Financial Statements and include all adjustments, consisting of only normal recurring adjustments, necessary for fair presentation. Results for all comparative prior periods have been reclassified to conform to the current period presentation. The results of operations for the three and six months ended June 30, 2018 are not necessarily indicative of the results of operations to be expected for the full year ended December 31, 2018. All dollar amounts (other than per share amounts) in the following disclosures are in thousands of United States dollars, unless otherwise indicated. |
Significant accounting policies |
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Significant accounting policies | Significant accounting policies Derivative financial instruments We may use derivative financial instruments, primarily interest rate swap contracts, to hedge our exposure to interest rate risk. Such derivative financial instruments are initially recorded at fair value on the date on which a derivative contract is entered into and are subsequently remeasured to fair value at period end. Any gains or losses arising from changes in fair value on derivative contracts not designated for hedge accounting are recorded in interest expense in our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). Standards adopted
Standards not yet adopted
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Revenue from Contract with Customer [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue | Revenue On January 1, 2018, we adopted ASC 606, Revenue from Contracts with Customers, as described in Note 2, using the modified retrospective approach to all contracts resulting in no cumulative adjustment to accumulated deficit. The adoption of this standard did not impact the timing of our revenue recognition based on the short-term, day-to-day nature of our operations. The following tables present our revenues disaggregated by geographic segment (refer to discussion of our reportable segments in Note 19) ($ in thousands):
Performance obligations We recognize revenues when the performance obligations are satisfied by transferring control of the product or service to our customers as described in the table below:
We do not disclose the value of unsatisfied performance obligations for contracts with an expected length of one year or less. Due to the nature of our business, our revenue is not significantly impacted by refunds. Cash payments received in advance of guests staying at our resorts are refunded to hotel guests if the guest cancels within the specified time period, before any services are rendered. Refunds related to service are generally recognized as an adjustment to the transaction price at the time the hotel stay occurs or services are rendered. Contract assets and liabilities We do not have any material contract assets as of June 30, 2018 and December 31, 2017 other than trade and other receivables, net on our Condensed Consolidated Balance Sheet. Our receivables are primarily the result of contracts with customers, which are reduced by an allowance for doubtful accounts that reflects our estimate of amounts that will not be collected. We record contract liabilities when cash payments are received or due in advance of guests staying at our resorts, which are presented within advance deposits (see Note 18) within trade and other payables on our Condensed Consolidated Balance Sheet. Contract liabilities decreased from $40.9 million as of December 31, 2017 to $36.1 million as of June 30, 2018. The decrease for the six months ended June 30, 2018 was primarily driven by $33.1 million of package revenue recognized that was included in the advanced deposits balance as of December 31, 2017, partially offset by additional cash payments received from guests prior to their stay and $5.8 million in advance deposits acquired in the business combination with the Sagicor Parties (as defined in Note 4). Contract costs We consider sales commissions earned to be incremental costs of obtaining a contract with our customers. As a practical expedient, we expense these costs as incurred when the period to be benefited is less than one year. |
Business combinations |
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Business Combinations [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business combinations | Business combinations Business combination with the Sagicor Parties On February 26, 2018, we entered into a Share Exchange Implementation Agreement with JCSD Trustee Services Limited, X Fund Properties Limited, Sagicor Pooled Investment Funds Limited, and Sagicor Real Estate X Fund Limited (collectively, the “Sagicor Parties”), as amended by that certain First Amendment to Share Exchange Implementation Agreement dated May 31, 2018 (as amended, the “Contribution Agreement”). Pursuant to the Contribution Agreement, the Sagicor Parties agreed to contribute a portfolio of the following assets (the “Sagicor Assets”) to a subsidiary of Playa in exchange for consideration consisting of a combination of our ordinary shares and cash:
On June 1, 2018 (the “Acquisition Date”), we consummated our acquisition of the Sagicor Assets for total consideration, after preliminary working capital adjustments, of $308.5 million. The Company accounted for the acquisition as a business combination in accordance with ASC 805, Business Combinations, and allocated the purchase price to the fair values of assets acquired and liabilities assumed. The business combination with the Sagicor Parties allows us to expand our portfolio of resorts in the all-inclusive segment of the lodging industry, capitalize on opportunities for internal growth and create significant operational synergies. The following table summarizes the fair value of each class of consideration transferred to the Sagicor Parties on the Acquisition Date ($ in thousands, except share data):
Preliminary fair values of assets acquired and liabilities assumed The following table presents our preliminary estimates of fair values of the assets that we acquired and the liabilities that we assumed on the Acquisition Date. Our preliminary estimates are based on the information that was available as of the Acquisition Date, and we are continuing to evaluate the underlying inputs and assumptions used in our valuations. Accordingly, these preliminary estimates are subject to change during the measurement period, which can be up to one year from the Acquisition Date ($ in thousands):
Property, plant and equipment We acquired property, plant and equipment, which primarily consists of the all-inclusive resorts and adjacent developable land sites that we acquired. We provisionally estimated the value of the acquired property, plant and equipment using a combination of the income and market approaches, which are primarily based on significant Level 2 and Level 3 assumptions (as described in Note 16), such as estimates of future income growth, capitalization rates, discount rates, and capital expenditure needs of the Sagicor Assets. Identified intangible assets and liabilities The following table presents our preliminary estimates of the fair values of the identified intangible asset and liabilities and their related estimated useful lives that we acquired on the Acquisition Date ($ in thousands):
We provisionally estimated the value of the management agreement using the multi-period excess earnings valuation method, which is a variation of the income valuation approach. This method estimates an intangible asset’s value based on the present value of the incremental after-tax cash flows attributable to the intangible asset. This valuation approach utilizes Level 3 inputs (as described in Note 16). Deferred income taxes Deferred income taxes primarily relate to the fair value of non-current assets and liabilities acquired from the Sagicor Parties, including property, plant and equipment, intangible assets and liabilities and other. We provisionally estimated deferred income taxes based on the statutory rate in the jurisdiction of the legal entities where the acquired non-current assets and liabilities are recorded. We will update our estimate of deferred income taxes based on changes to our preliminary valuations of the related assets and liabilities, which could result in changes to these preliminary values. Goodwill The excess of the purchase consideration over the aggregate estimated fair values of assets acquired and liabilities assumed was recorded as goodwill. The goodwill recognized is attributable primarily to expected synergies and future growth opportunities of our combined operations and is not deductible for income tax purposes. Goodwill related to the business combination was recognized at the Jamaica reportable segment (refer to discussion of our reportable segments in Note 19). Pro forma results of operations The following unaudited pro forma results of operations have been prepared as though the business combination was completed on January 1, 2017. This unaudited pro forma financial information does not necessarily reflect the results of operations of Playa that actually would have resulted had the acquisition of the Sagicor Assets occurred at the date indicated, nor does it project the results of operations of Playa for any future date or period ($ in thousands, except per share amounts):
The unaudited pro forma financial information for the three and six months ended June 30, 2018 and 2017 includes adjustments for:
For the six months ended June 30, 2018, we incurred approximately $2.0 million in transaction costs related to the acquisition and approximately $1.3 million in transaction costs related to the issuance of the $100.0 million term loan add-on. These costs are recorded within selling, general and administrative expenses in the Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) and are reflected in unaudited pro forma net income for the six months ended June 30, 2017 in the table above. Sagicor Assets' results of operations The following table presents the results of the Sagicor Assets' operations, which are recorded within our Jamaica reportable segment, included in our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) for the period from the Acquisition Date through June 30, 2018 ($ in thousands):
Recapitalization transaction At 12:00 a.m. Central European Time on March 12, 2017, we consummated a business combination (the “Pace Business Combination”) pursuant to that certain transaction agreement by and among us, Playa Hotels & Resorts B.V. (our “Predecessor”), Pace Holdings Corp. (“Pace”) and New Pace Holdings Corp. (“New Pace”), the effects of which replicated the economics of a reverse merger between our Predecessor and Pace. In connection with the Pace Business Combination, Pace formed Porto Holdco B.V., a Dutch private limited liability company (besloten vennootschap met beperkte aansprakelijkheid), as a wholly-owned subsidiary to facilitate the reverse merger with our Predecessor. Prior to the consummation of the Pace Business Combination, Porto Holdco B.V. was converted to a Dutch public limited liability company (naamloze vennootschap) and changed its name to Porto Holdco N.V. Upon the consummation of the Pace Business Combination, the Company's name was changed to Playa Hotels & Resorts N.V. For accounting and financial reporting purposes, the Pace Business Combination was accounted for as a recapitalization of our Predecessor because Pace was incorporated as a special purpose acquisition company and considered a public shell company. Our Predecessor also maintained effective control of the combined entity because our Predecessor's operations comprise the ongoing operations of the combined entity, our Predecessor's senior management became the senior management of the combined entity and our Predecessor's directors were appointed to, and constitute the majority of, the combined entity's board of directors. Accordingly, no step-up in basis of assets or goodwill were recorded. The Condensed Consolidated Financial Statements presented herein are those of our Predecessor for all periods prior to the completion of the Pace Business Combination and the recapitalization of the number of ordinary shares attributable to our Predecessor shareholders is reflected retroactively to the earliest period presented. Accordingly, the number of ordinary shares presented as outstanding as of December 31, 2016 totaled 50,481,822 and consisted of the number of ordinary shares issued to Predecessor shareholders. This number of shares was also used to calculate the Company’s earnings per share for all periods prior to the Pace Business Combination. The consideration received as a result of the Pace Business Combination is summarized as follows ($ in thousands):
________ (1) Balance consisted of the face value of our Predecessor's cumulative redeemable preferred shares (“Preferred Shares”) and their associated PIK dividends as of March 10, 2017, per the terms of the Pace Business Combination. (2) In connection with the Pace Business Combination, we entered into subscription agreements (the “Subscription Agreements”) with Playa employees, their family members and persons with business relationships with Playa, pursuant to which those persons agreed to purchase 82,751 ordinary shares for an aggregate purchase price of $0.8 million. |
Property, plant and equipment |
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Property, plant and equipment | Property, plant and equipment The balance of property, plant and equipment is as follows ($ in thousands):
Depreciation expense for property, plant and equipment was $31.0 million and $25.8 million for the six months ended June 30, 2018 and 2017, respectively. Depreciation expense for property, plant and equipment was $15.6 million and $13.6 million for the three months ended June 30, 2018 and 2017, respectively. For the six months ended June 30, 2018 and 2017, $2.1 million and $0 of interest expense was capitalized on qualifying assets, respectively. For the three months ended June 30, 2018 and 2017, $1.4 million and $0 of interest expense was capitalized on qualifying assets, respectively. Interest expense was capitalized at the weighted-average interest rate of our debt. Cap Cana development On July 12, 2017, we acquired the land for the new Hyatt Zilara Cap Cana and Hyatt Ziva Cap Cana in Punta Cana, Dominican Republic for total consideration of $56.2 million. We paid $45.6 million of the consideration in cash upon closing of the acquisition. The remaining $10.6 million balance is due on the earlier of (i) two years from the beginning of construction of the resorts or (ii) the opening of the resorts and is recorded in other liabilities within the Condensed Consolidated Balance Sheet as of June 30, 2018 and December 31, 2017. |
Income taxes |
6 Months Ended |
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Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income taxes | Income taxes We are domiciled in The Netherlands and are taxed in The Netherlands with our other Dutch subsidiaries. Dutch companies are subject to Dutch corporate income tax at a general tax rate of 25%. For the three months ended June 30, 2018, our income tax benefit was $3.4 million, compared to a $6.3 million tax provision for the three months ended June 30, 2017. The decreased income tax provision of $9.7 million was driven primarily by the increased discrete tax benefit associated with foreign exchange rate fluctuations. For the six months ended June 30, 2018, our income tax provision was $6.2 million, compared to a $19.9 million tax provision for the six months ended June 30, 2017. The decreased income tax provision of $13.7 million was driven primarily by the increased discrete tax benefit associated with foreign exchange rate fluctuations. On December 22, 2017, the U.S. government enacted comprehensive tax legislation, commonly referred to as U.S. Tax Reform. As noted in our Annual Report on Form 10-K for the year ended December 31, 2017, the Company completed its deferred tax accounting related to the reduction to the U.S. corporate income tax rate from 35% to 21%. We are not aware of any significant changes to this legislation for the six months ended June 30, 2018. Since we are a company incorporated in the Netherlands and do not have any controlled foreign corporations under U.S. tax law, we concluded that the new legislation related to global intangible low-taxed income (“GILTI”) and base erosion anti-abuse tax (“BEAT”) does not apply and therefore no policy decision is required. |
Related party transactions |
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Related party transactions | Related party transactions The following summarizes transactions and arrangements that we have entered into with related parties. The details of the balances between us and related parties as of June 30, 2018 and December 31, 2017 are as follows ($ in thousands):
Relationship with Hyatt As described below, we pay Hyatt franchise fees for our resorts currently operating under the all-ages Hyatt Ziva and adults-only Hyatt Zilara brands. In addition, in connection with the Pace Business Combination, all outstanding Preferred Shares of our Predecessor owned by HI Holdings Playa were purchased at a purchase price of $8.40 per share for $196.0 million in face value and $93.6 million of associated PIK dividends. Relationship with Real Shareholder In connection with the Pace Business Combination, all outstanding Preferred Shares of our Predecessor owned by the selling shareholder of Real Resorts (“Real Shareholder”) were purchased at a purchase price of $8.40 per share for $43.5 million in face value and $20.8 million of associated PIK dividends. Upon the consummation of the Pace Business Combination, the Real Shareholder was no longer considered a related party because the Preferred Shares were extinguished in connection with the Pace Business Combination. Transactions with related parties Transactions between us and related parties during the three and six months ended June 30, 2018 and 2017 were as follows ($ in thousands):
________
One of our offices is owned by our Chief Executive Officer, and we sublease the space at that location from a third party. Lease payments related to this space were $0.5 million and $0.6 million for the six months ended June 30, 2018 and 2017, respectively. Lease payments related to this space were $0.3 million and $0.3 million for the three months ended June 30, 2018 and 2017. One of our previous offices in Cancún, Mexico was owned by an affiliate of the Real Shareholder, and we subleased the space from a third party also affiliated with the Real Shareholder. We terminated this lease agreement effective July 1, 2017. Lease payments related to this space were less than $0.1 million for the three and six months ended June 30, 2017. |
Commitments and contingencies |
6 Months Ended |
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Jun. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and contingencies | Commitments and contingencies Litigation, claims and assessments We are involved in various claims and lawsuits arising in the normal course of business, including proceedings involving tort and other general liability claims, workers' compensation and other employee claims, intellectual property claims and claims related to our management of certain hotel properties. Most occurrences involving liability and claims of negligence are covered by insurance with solvent insurance carriers. We recognize a liability when we believe the loss is probable and reasonably estimable. We currently believe that the ultimate outcome of such lawsuits and proceedings will not, individually or in the aggregate, have a material effect on our Condensed Consolidated Financial Statements. The Dutch corporate income tax act provides the option of a fiscal unity, which is a consolidated tax regime wherein the profits and losses of group companies can be offset against each other. Our Dutch companies file as a fiscal unity, with the exception of Playa Romana B.V., Playa Romana Mar B.V. and Playa Hotels & Resorts N.V. Playa Resorts Holding B.V. is the head of our Dutch fiscal unity and is jointly and severally liable for the tax liabilities of the fiscal unity as a whole. During the third quarter of 2015, we identified and recorded a potential Dutch operating tax contingency resulting from allocations to be made of certain corporate expenses from 2014 and 2015. We have provided all requested documentation to the Dutch tax authorities for their review and are currently waiting for their final determination. We have an estimated amount of $1.6 million as a tax contingency at June 30, 2018 that is recorded in other liabilities within the Condensed Consolidated Balance Sheet. Electricity supply contract One of our subsidiaries entered into an electricity supply contract wherein we committed to purchase electricity from a provider over a five-year period ending December 2019. In consideration for our commitment, we received certain rebates. Should this contract be terminated prior to the end of the five-year period, we will be obligated to refund to the supplier the undepreciated portion of (i) the capital investment it made to connect our facilities to the power grid (original amount approximately $1.4 million) and (ii) the unearned rebates we received (total unearned rebates of $0.6 million and $0.8 million as of June 30, 2018 and December 31, 2017, respectively), in each case using a 20% straight-line depreciation per annum. Leases and other commitments We lease certain equipment for the operations of our hotels under various lease agreements. The leases extend for varying periods through 2021 and contain fixed components and utility payments. In addition, all of our administrative offices are subject to leases of building facilities from third parties, which extend for varying periods through 2023 and contain fixed and variable components. Rental expense under non-cancelable operating leases, including contingent leases, consisted of $1.1 million and $1.0 million for the six months ended June 30, 2018 and 2017, respectively. Rental expense under non-cancelable operating leases, including contingent leases, consisted of $0.6 million and $0.5 million for the three months ended June 30, 2018 and 2017, respectively. |
Ordinary shares |
6 Months Ended |
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Jun. 30, 2018 | |
Equity [Abstract] | |
Ordinary shares | Ordinary shares As of December 31, 2016, the number of ordinary shares presented as outstanding totaled 50,481,822, consisting of the number of ordinary shares issued to Predecessor shareholders after the retroactive application of the recapitalization. On March 12, 2017, 52,982,364 ordinary shares were issued as part of a recapitalization completed in the Pace Business Combination (see Note 4). On June 1, 2018, 20,000,000 ordinary shares were issued as part of the business combination with the Sagicor Parties (see Note 4). On December 28, 2017, a member of our Board of Directors waived his previously granted share-based compensation for his services as a member of our Board, and transferred 7,367 ordinary shares back to us for no consideration. The shares are recorded as treasury shares on the Condensed Consolidated Balance Sheet as of June 30, 2018. As of June 30, 2018, our ordinary share capital consisted of 130,478,993 ordinary shares outstanding, which have a par value of €0.10 per share. In addition, 2,087,634 restricted shares were outstanding under the 2017 Plan (as defined in Note 11) that entitle holders thereof to vote, but not dispose of, such shares until they vest. Warrants We issued 3,000,000 warrants to our Predecessor's former ordinary shareholders and TPG Pace Sponsor, LLC, a Cayman Islands limited liability company and an affiliate of TPG Global, LLC, as consideration in the Pace Business Combination (the “Earnout Warrants”). The Earnout Warrants entitle such warrant holders to acquire one ordinary share for each Earnout Warrant for an exercise price of €0.10 per ordinary share in the event that the price per share underlying the Earnout Warrants on the NASDAQ is greater than $13.00 for a period of more than 20 days out of 30 consecutive trading days within the five years after the closing date of the Pace Business Combination. The Earnout Warrants expire five years after the completion of the Pace Business Combination or earlier upon redemption or liquidation in accordance with their term. As of June 30, 2018, all 3,000,000 Earnout Warrants remained outstanding. |
Warrants |
6 Months Ended |
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Jun. 30, 2018 | |
Equity [Abstract] | |
Warrants | Ordinary shares As of December 31, 2016, the number of ordinary shares presented as outstanding totaled 50,481,822, consisting of the number of ordinary shares issued to Predecessor shareholders after the retroactive application of the recapitalization. On March 12, 2017, 52,982,364 ordinary shares were issued as part of a recapitalization completed in the Pace Business Combination (see Note 4). On June 1, 2018, 20,000,000 ordinary shares were issued as part of the business combination with the Sagicor Parties (see Note 4). On December 28, 2017, a member of our Board of Directors waived his previously granted share-based compensation for his services as a member of our Board, and transferred 7,367 ordinary shares back to us for no consideration. The shares are recorded as treasury shares on the Condensed Consolidated Balance Sheet as of June 30, 2018. As of June 30, 2018, our ordinary share capital consisted of 130,478,993 ordinary shares outstanding, which have a par value of €0.10 per share. In addition, 2,087,634 restricted shares were outstanding under the 2017 Plan (as defined in Note 11) that entitle holders thereof to vote, but not dispose of, such shares until they vest. Warrants We issued 3,000,000 warrants to our Predecessor's former ordinary shareholders and TPG Pace Sponsor, LLC, a Cayman Islands limited liability company and an affiliate of TPG Global, LLC, as consideration in the Pace Business Combination (the “Earnout Warrants”). The Earnout Warrants entitle such warrant holders to acquire one ordinary share for each Earnout Warrant for an exercise price of €0.10 per ordinary share in the event that the price per share underlying the Earnout Warrants on the NASDAQ is greater than $13.00 for a period of more than 20 days out of 30 consecutive trading days within the five years after the closing date of the Pace Business Combination. The Earnout Warrants expire five years after the completion of the Pace Business Combination or earlier upon redemption or liquidation in accordance with their term. As of June 30, 2018, all 3,000,000 Earnout Warrants remained outstanding. |
Share-based compensation |
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Share-based compensation | Share-based compensation The Company adopted the 2017 Omnibus Incentive Plan (the “2017 Plan”) to attract and retain independent directors, executive officers and other key employees and service providers. The 2017 Plan was approved by the Board of Directors and shareholders of the Company on March 10, 2017. The 2017 Plan is administered by the Compensation Committee of our Board of Directors, who may grant awards covering a maximum of 4,000,000 of our ordinary shares under the 2017 Plan. The Compensation Committee may award share options, share appreciation rights, restricted shares, share units, unrestricted shares, dividend equivalent rights, performance shares and other performance-based awards, other equity-based awards, and cash bonus awards. As of June 30, 2018, there were 1,317,396 shares available for future grants under the 2017 Plan. Restricted share awards Restricted share awards are granted to eligible employees, executives, and board members. Restricted shares are ordinary shares that are subject to restrictions and to a risk of forfeiture. On May 16, 2017, the Compensation Committee of the Board approved the issuance of 994,115 restricted share awards to employees and executives of the Company. Each award granted vests over a five year period with 25% of the underlying award vesting on the third anniversary of the grant date of the award, 25% vesting on the fourth anniversary of the grant date of the award and 50% vesting on the fifth anniversary of the grant date of the award. On May 26, 2017, the Compensation Committee of the Board approved the issuance of 410,096 restricted share awards to employees and executives of the Company and 51,569 restricted share awards to directors of the Company for their services as directors. Each award granted to employees and executives vests pro rata over a three year period. Each award granted to a director was fully vested on the date of grant. On January 2, 2018, the Compensation Committee of the Board approved the issuance of 438,185 restricted share awards to employees and executives of the Company and 48,699 restricted share awards to directors of the Company for their services as directors. Each award granted to employees and executives vests pro rata over a three year period. Each award granted to a director was fully vested on the date of grant. The vesting of restricted share awards is subject to the holder's continued employment through the applicable vesting date. Unvested awards will be forfeited if the employee's or the executive's employment terminates during the vesting period, provided that unvested awards will accelerate upon certain terminations of employment as set forth in the applicable award agreements. The holders of these awards have the right to vote the restricted shares and receive all dividends declared and paid on such shares, provided that dividends paid on unvested restricted shares will be subject to the same conditions and restrictions applicable to the underlying restricted shares. Compensation expense for the restricted share awards is measured based upon the fair market value of our ordinary shares at the date of grant and compensation expense is recognized on a straight-line basis over the vesting period. A summary of our restricted share awards from January 1, 2018 to June 30, 2018 is as follows:
The total fair value of vested restricted share awards during the six months ended June 30, 2018 and 2017 was $1.9 million and $0.5 million, respectively. The total fair value of vested restricted share awards during the three months ended June 30, 2018 and 2017 was $1.4 million and $0.5 million, respectively. As of June 30, 2018 and 2017, the unrecognized compensation cost related to restricted share awards was $13.2 million and $13.9 million, respectively, and is expected to be recognized over a weighted average period of approximately 3.1 years and 4.3 years, respectively. Compensation expense related to the restricted share awards was $2.8 million and $0.9 million for the six months ended June 30, 2018 and 2017, respectively, and $1.2 million and $0.9 million for the three months ended June 30, 2018 and 2017, respectively. Compensation expense is recorded within selling, general and administrative expenses in the Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). Performance share awards Performance share awards consist of a grant of ordinary shares that may become earned and vested based on the achievement of performance targets adopted by our Compensation Committee. On May 26, 2017, the Compensation Committee of the Board approved a target award of 265,222 performance shares to executives of the Company. The actual number of ordinary shares that ultimately vest will range from 0% to 150% of the target award and will be determined in 2020 based on two performance criteria as defined in the award agreements for the period of performance from January 1, 2017 through December 31, 2019. On January 2, 2018, the Compensation Committee of the Board approved a target award of 273,729 performance shares to executives of the Company. The actual number of ordinary shares that ultimately vest will range from 0% to 150% of the target award and will be determined in 2021 based on two performance criteria as defined in the award agreements for the period of performance from January 2, 2018 through December 31, 2020. Any ordinary shares that ultimately vest based on the achievement of the applicable performance criteria will be deemed to be vested on the date on which our Compensation Committee certifies the level of achievement of such performance criteria. Except in connection with certain qualifying terminations of employment, as set forth in the applicable award agreements, the awards require continued service through the certification date. The holders of these awards have the right to vote the ordinary shares granted to the holder and any dividends declared on such shares will be accumulated and will be subject to the same vesting conditions as the awards. The grant date fair value of the portion of the award based on the compounded annual growth rate of the Company's total shareholder return was estimated using a Monte-Carlo model. The table below summarizes the key inputs used in the Monte-Carlo simulation ($ in thousands):
________ (1) Expected volatility was determined based on the historical share prices in our industry. (2) The risk-free rate was based on U.S. Treasury zero coupon issues with a remaining term equal to the remaining term of the measurement period. In the table above, the total shareholder return component is a market condition as defined by ASC 718, Compensation—Stock Compensation, and compensation expense related to this component is recognized on a straight-line basis over the vesting period. The grant date fair value of the portion of the awards based on the compounded annual growth rate of the Company's adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”) was based on the closing stock price of our ordinary shares on such date. The Adjusted EBITDA component is a performance condition as defined by ASC 718, and, therefore, compensation expense related to this component will be reassessed at each reporting date based on the Company's estimate of the probable level of achievement, and the accrual of compensation expense will be adjusted as appropriate. As of June 30, 2018 and 2017, the unrecognized compensation cost related to the performance share awards was $3.2 million and $2.1 million, respectively, and is expected to be recognized over a weighted average period of 2.1 years and 2.9 years, respectively. Compensation expense related to the performance share awards was approximately $1.1 million and less than $0.1 million for the six months ended June 30, 2018 and 2017, respectively, and $1.0 million and less than $0.1 million for the three months ended June 30, 2018 and 2017, respectively. Compensation expense is recorded within selling, general and administrative expenses in the Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). |
Preferred Shares |
6 Months Ended |
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Jun. 30, 2018 | |
Equity [Abstract] | |
Preferred Shares | Preferred Shares Prior to the consummation of the Pace Business Combination, all of our Predecessor's Preferred Shares were purchased at a purchase price of $8.40 per share for an aggregate amount of $353.9 million, which consisted of $239.5 million in face value and $114.4 million of associated PIK dividends. The Preferred Shares issued by our Predecessor were eliminated and extinguished as part of the reverse merger in the Pace Business Combination. The extinguishment is reflected as a non-cash financing activity in the Condensed Consolidated Statements of Cash Flows. |
Earnings per share |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings per share | Earnings per share Prior to the consummation of the Pace Business Combination, our Preferred Shares and their related accumulated Non-cash PIK Dividends were participating securities. If a dividend was declared or paid on our Predecessor's ordinary shares, holders of our Predecessor's ordinary shares and Preferred Shares were entitled to proportionate shares of such dividend, with the holders of our Predecessor's Preferred Shares participating on an as-if converted basis. Under the two-class method, basic earnings (losses) per share (“EPS”) attributable to ordinary shareholders is computed by dividing the net income (loss) attributable to ordinary shareholders by the weighted-average number of ordinary shares outstanding during the period. Net income (loss) attributable to ordinary shareholders is determined by allocating undistributed earnings between ordinary and preferred shareholders. For periods in which there are undistributed losses, there is no allocation of undistributed earnings to preferred shareholders. Diluted EPS attributable to ordinary shareholders is computed by using the more dilutive result of the two-class method, the if-converted method or the treasury stock method. The if-converted method uses the weighted-average number of ordinary shares outstanding during the period, including potentially dilutive ordinary shares assuming the conversion of the outstanding Preferred Shares of our Predecessor, as of the first day of the reporting period. The dilutive effect of awards under our equity compensation plan is reflected in diluted earnings per share by application of the treasury stock method. Under the two-class method, the number of shares used in the computation of diluted earnings per share is the same as that used for the computation of basic earnings per share for participating securities, as the result would be anti-dilutive. The net income attributable to ordinary shareholders is not allocated to the Preferred Shares until all other reserves have been exhausted or such loss cannot be covered in any other way. The calculations of basic and diluted EPS are as follows ($ in thousands):
(1) For the six months ended June 30, 2017, Preferred Share dividends of our Predecessor of $7.9 million and the preferred shareholders’ allocation of undistributed earnings of our Predecessor of $1.4 million were not added back for purposes of calculating diluted EPS because the effect of treating our Predecessor's Preferred Shares as if they had been converted to their 15,927,778 ordinary share equivalents as of January 1, 2017 was anti-dilutive. For the three months ended June 30, 2018 and 2017, 538,951 and 265,222 of unvested performance-based equity awards, respectively, were not included in the computation of diluted EPS as the performance criteria were not met as of the end of the reporting period. For the three months ended June 30, 2017, 1,400,386 of unvested restricted share awards are not included in the computation of diluted EPS as their effect would have been anti-dilutive. For the six months ended June 30, 2018 and 2017, 538,951 and 265,222 shares of unvested performance-based equity awards, respectively, were not included in the computation of diluted EPS after assumed conversions as the performance criteria were not met as of the end of the reporting period. For the three and six months ended June 30, 2018 and 2017, outstanding Earnout Warrants to acquire a total of 3,000,000 ordinary shares were not included in the computation of diluted EPS after assumed conversions because the warrants were not exercisable as of June 30, 2018 or June 30, 2017, respectively. |
Debt |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt | Debt Debt consists of the following ($ in thousands):
________
June 2018 amendment On June 7, 2018, we entered into the Second Amendment to Amended & Restated Credit Agreement (the “Amendment”), which amended the Amended & Restated Credit Agreement, dated as of April 27, 2017 (the “Existing Credit Agreement”). The Amendment amended the Existing Credit Agreement to, among other things (i) effect an incremental term loan facility of $100.0 million (the “Incremental Term Loan” and, together with the existing terms loans that were in effect prior to the Amendment, the “Term Loan”) that was incurred pursuant to the exercise of our option to request incremental loans under the Existing Credit Agreement and (ii) decrease the interest rate applicable to the Term Loan by 0.50% to, at our option, either a base rate plus a margin of 1.75% or LIBOR plus a margin of 2.75%. The other terms to the Existing Credit Agreement, including those disclosed in our Annual Report on Form 10-K filed with the SEC on March 1, 2018, were not effected by the Amendment. Financial maintenance covenants Our Existing Credit Agreement requires us to meet a springing leverage ratio financial maintenance covenant, but only if the aggregate amount outstanding on our Revolving Credit Facility exceeds 35% of the aggregate revolving credit commitments as defined in our Existing Credit Agreement. We were in compliance with all applicable covenants as of June 30, 2018. |
Derivative financial instruments |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative financial instruments | Derivative financial instruments Interest Rate Swaps Effective March 29, 2018, we entered into two interest rate swaps to mitigate the interest rate risk inherent in our variable rate debt, including the Revolving Credit Facility and Term Loan. The interest rate swaps have fixed notional values of $200.0 million and $600.0 million. The fixed rate paid by us is 2.85% and the variable rate received resets monthly to the one-month LIBOR rate. The interest rate swaps are not for trading purposes and we have not designated the interest rate swaps for hedge accounting treatment. As a result, changes in fair value of the interest rate swaps are recognized in earnings immediately as interest expense in the Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). The interest rate swaps mature on March 31, 2023. The following table presents the location and effects of the derivative instruments in the Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) for the three and six months ended June 30, 2018 and 2017 ($ in thousands):
The following table presents the location and fair value of the derivative instruments in the Condensed Consolidated Balance Sheet as of June 30, 2018 and December 31, 2017 ($ in thousands):
Derivative financial instruments expose the Company to credit risk in the event of non-performance by the counterparty under the terms of the interest rate swaps. The Company incorporates these counterparty credit risks in its fair value measurements (see Note 16). The Company believes it minimizes this credit risk by transacting with major creditworthy financial institutions. |
Fair value of financial instruments |
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Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair value of financial instruments | Fair value of financial instruments Our financial instruments consist of cash and cash equivalents, trade and other receivables, accounts receivable from related parties, trade and other payables, accounts payable to related parties, derivatives and debt. We believe the carrying value of these assets and liabilities, excluding the Term Loan, approximate their fair values as of June 30, 2018 and December 31, 2017. Fair value measurements The objective of a fair value measurement is to estimate the price at which an orderly transaction to sell the asset or to transfer the liability would take place between market participants at the measurement date under current market conditions. U.S. GAAP establishes a hierarchical disclosure framework, which prioritizes and ranks the level of observability of inputs used in measuring fair value as follows:
We did not have any movements in and out of Level 3 for our fair valued instruments during any of the above periods. The following table presents our fair value hierarchy for our financial liabilities measured at fair value on a recurring basis as of June 30, 2018 ($ in thousands):
As of December 31, 2017, there were no financial assets or liabilities measured at fair value on a recurring basis as our deferred consideration was settled during the third quarter of 2017. The following table presents the changes in our Level 3 fair valued instruments for the three and six months ended June 30, 2017 ($ in thousands):
________ (1) All losses and gains (other than changes in net assets) were included in interest expense in the Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). The following tables present our fair value hierarchy for our financial liabilities not measured at fair value as of June 30, 2018 and December 31, 2017 ($ in thousands):
The following table summarizes the valuation techniques used to estimate the fair value of our financial liabilities measured at fair value on a recurring basis and our financial liabilities not measured at fair value:
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Employee benefit plan |
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Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Employee benefit plan | Employee benefit plan In accordance with labor law regulations in Mexico, certain employees are legally entitled to receive severance that is commensurate with the tenure they had with us at the time of termination without cause, which results in an unfunded benefit obligation. There were no plan assets as of June 30, 2018 or December 31, 2017 as contributions are made only to the extent benefits are paid. The following table presents the components of net periodic pension (benefit) cost for the three and six months ended June 30, 2018 and 2017 ($ in thousands):
The service cost component of net periodic pension (benefit) cost is recorded within direct expense in the Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). The non-service cost components of net periodic pension cost are recorded within other income (expense) for all periods presented. |
Other balance sheet items |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other balance sheet items | Other balance sheet items Trade and other receivables, net The following summarizes the balances of trade and other receivables, net as of June 30, 2018 and December 31, 2017 ($ in thousands):
Our allowance for doubtful accounts as of June 30, 2018 and December 31, 2017 was approximately $0.5 million and $0.8 million, respectively. We have not experienced any significant write-offs to our accounts receivable. Prepayments and other assets The following summarizes the balances of prepayments and other assets as of June 30, 2018 and December 31, 2017 ($ in thousands):
________
(2) Represents a cash deposit related to the Sanctuary Cap Cana management contract. We are in the process of negotiating final terms for the purchase of a 30% interest in the resort in the second half of 2018, and the deposit will be used towards this purchase if we are able to agree on terms. If the purchase is not completed, this amount, together with an additional $0.8 million due, will be treated as key money. (3) Represents a favorable ground lease intangible acquired in the business combination with the Sagicor Parties (see Note 4). Amortization is recorded in direct expenses in the Condensed Consolidated Statement of Operations and Comprehensive Income (Loss). Goodwill The gross carrying values and accumulated impairment losses of goodwill by reportable segment (refer to discussion of our reportable segments in Note 19) as of June 30, 2018 and December 31, 2017 are as follows ($ in thousands):
Other intangible assets Other intangible assets as of June 30, 2018 and December 31, 2017 consisted of the following ($ in thousands):
________ (1) Represents software development costs incurred to develop and implement SAP as our integrated enterprise resource planning (“ERP”) system. These costs will be amortized over the ERP system's estimated useful life of 7 years. As of June 30, 2018, the ERP system had not been placed into service. (2) Represents the fair value of a management contract acquired in the business combination with the Sagicor Parties (see Note 4). (3) Our licenses have indefinite lives. Accordingly, there is no associated amortization expense or accumulated amortization. As of June 30, 2018 and December 31, 2017, such indefinite lived assets totaled $0.9 million and $1.0 million, respectively. Amortization expense for intangible assets was $0.6 million and $0.5 million for the six months ended June 30, 2018 and 2017, respectively. Amortization expense for intangible assets was $0.3 million and $0.3 million for the three months ended June 30, 2018 and 2017, respectively. Trade and other payables The following summarizes the balances of trade and other payables as of June 30, 2018 and December 31, 2017 ($ in thousands):
Other liabilities The following summarizes the balances of other liabilities as of June 30, 2018 and December 31, 2017 ($ in thousands):
________
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Segment information |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment information | Segment information As a result of our business combination with the Sagicor Parties, we evaluated and modified the presentation of our reportable segments to reflect the management of our resorts after the incorporation of the Sagicor Assets. We divided our Caribbean Basin segment into separate Dominican Republic and Jamaica segments, which caused us to change from three to four reportable segments. The results for all comparative prior periods have been reclassified to conform to the current period presentation. We consider each one of our resorts to be an operating segment, none of which meets the threshold for a reportable segment. We also allocate resources and assess operating performance based on individual resorts. Our operating segments meet the aggregation criteria and thus, we report four separate segments by geography: (i) Yucatán Peninsula, (ii) Pacific Coast, (iii) Dominican Republic and (iv) Jamaica. For the three and six months ended June 30, 2018 and 2017, we have excluded the immaterial amounts of management fees, cost reimbursements and other from our segment reporting. Our operating segments are components of the business which are managed discretely and for which discrete financial information is reviewed regularly by our Chief Executive Officer, Chief Financial Officer and Chief Operating Officer, all of whom represent our chief operating decision maker (“CODM”). Financial information for each reportable segment is reviewed by the CODM to assess performance and make decisions regarding the allocation of resources. We did not provide a reconciliation of reportable segments' assets to our consolidated assets as this information is not reviewed by the CODM to assess performance and make decisions regarding the allocation of resources. The performance of our operating segments is evaluated primarily on adjusted earnings before interest expense, income tax benefit (provision), and depreciation and amortization expense (“Adjusted EBITDA”), which should not be considered an alternative to net income (loss) or other measures of financial performance or liquidity derived in accordance with U.S. GAAP. We define Adjusted EBITDA as net income (loss), determined in accordance with U.S. GAAP, for the period presented, before interest expense, income tax benefit (provision), and depreciation and amortization expense, further adjusted to exclude the following items: (a) other income (expense), net; (b) share-based compensation; (c) loss on extinguishment of debt; (d) transaction expenses; (e) severance expense; (f) other tax expense; (g) Jamaica delayed opening accrual reversal and (h) non-service cost components of net periodic pension cost (benefit). There are limitations to using financial measures such as Adjusted EBITDA. For example, other companies in our industry may define Adjusted EBITDA differently than we do. As a result, it may be difficult to use Adjusted EBITDA or similarly named financial measures that other companies publish to compare the performance of those companies to our performance. Because of these limitations, Adjusted EBITDA should not be considered as a measure of the income or loss generated by our business or discretionary cash available for investment in our business and investors should carefully consider our U.S. GAAP results presented in our Condensed Consolidated Financial Statements. The following tables present segment net revenue, a reconciliation to gross revenue and segment Adjusted EBITDA and a reconciliation to net income (loss) ($ in thousands):
________ (1) Segment net revenue represents total gross revenue less compulsory tips paid to employees, cost reimbursements and other miscellaneous revenue not derived from segment operations.
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Subsequent events |
6 Months Ended |
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Jun. 30, 2018 | |
Subsequent Events [Abstract] | |
Subsequent events | Subsequent events In preparing the interim Condensed Consolidated Financial Statements, we have evaluated subsequent events occurring after June 30, 2018. Based on this evaluation, there were no subsequent events from June 30, 2018 through the date the Condensed Consolidated Financial Statements were issued. |
Significant accounting policies (Policies) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basis of preparation, presentation and measurement | Basis of preparation, presentation and measurement On June 1, 2018, we completed a business combination with the Sagicor Parties (as defined in Note 4), which caused us to evaluate and modify the presentation of our reportable segments. See Note 4 and Note 19 for additional discussion regarding the business combination and our reportable segments, respectively. Our Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information. Certain information and disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. Accordingly, these unaudited interim Condensed Consolidated Financial Statements should be read in conjunction with the Company’s Consolidated Financial Statements as of and for the year ended December 31, 2017, included in our Annual Report on Form 10-K for the year ended December 31, 2017, filed with the Securities and Exchange Commission (the “SEC”) on March 1, 2018. In our opinion, the unaudited interim Condensed Consolidated Financial Statements have been prepared on the same basis as the annual Consolidated Financial Statements and include all adjustments, consisting of only normal recurring adjustments, necessary for fair presentation. Results for all comparative prior periods have been reclassified to conform to the current period presentation. The results of operations for the three and six months ended June 30, 2018 are not necessarily indicative of the results of operations to be expected for the full year ended December 31, 2018. All dollar amounts (other than per share amounts) in the following disclosures are in thousands of United States dollars, unless otherwise indicated. |
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Derivative financial instruments | Derivative financial instruments We may use derivative financial instruments, primarily interest rate swap contracts, to hedge our exposure to interest rate risk. Such derivative financial instruments are initially recorded at fair value on the date on which a derivative contract is entered into and are subsequently remeasured to fair value at period end. Any gains or losses arising from changes in fair value on derivative contracts not designated for hedge accounting are recorded in interest expense in our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). |
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Standards adopted and Standards not yet adopted | Standards adopted
Standards not yet adopted
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Significant accounting policies (Tables) |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Standards Adopted and Standards Not Yet Adopted | Standards adopted
Standards not yet adopted
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Revenue (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disaggregation of Revenue | The following tables present our revenues disaggregated by geographic segment (refer to discussion of our reportable segments in Note 19) ($ in thousands):
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Performance Obligations, Timing of Satisfaction | We recognize revenues when the performance obligations are satisfied by transferring control of the product or service to our customers as described in the table below:
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Business combinations (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Consideration Transferred | The following table summarizes the fair value of each class of consideration transferred to the Sagicor Parties on the Acquisition Date ($ in thousands, except share data):
The consideration received as a result of the Pace Business Combination is summarized as follows ($ in thousands):
________ (1) Balance consisted of the face value of our Predecessor's cumulative redeemable preferred shares (“Preferred Shares”) and their associated PIK dividends as of March 10, 2017, per the terms of the Pace Business Combination. (2) In connection with the Pace Business Combination, we entered into subscription agreements (the “Subscription Agreements”) with Playa employees, their family members and persons with business relationships with Playa, pursuant to which those persons agreed to purchase 82,751 ordinary shares for an aggregate purchase price of $0.8 million. |
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Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table presents our preliminary estimates of fair values of the assets that we acquired and the liabilities that we assumed on the Acquisition Date. Our preliminary estimates are based on the information that was available as of the Acquisition Date, and we are continuing to evaluate the underlying inputs and assumptions used in our valuations. Accordingly, these preliminary estimates are subject to change during the measurement period, which can be up to one year from the Acquisition Date ($ in thousands):
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Schedule of Identified Intangible Assets Acquired and Related Useful Lives | The following table presents our preliminary estimates of the fair values of the identified intangible asset and liabilities and their related estimated useful lives that we acquired on the Acquisition Date ($ in thousands):
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Schedule of Unaudited Pro Forma Results of Operations | The following unaudited pro forma results of operations have been prepared as though the business combination was completed on January 1, 2017. This unaudited pro forma financial information does not necessarily reflect the results of operations of Playa that actually would have resulted had the acquisition of the Sagicor Assets occurred at the date indicated, nor does it project the results of operations of Playa for any future date or period ($ in thousands, except per share amounts):
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Schedule of Sagicor Hotel Properties' Results of Operations | The following table presents the results of the Sagicor Assets' operations, which are recorded within our Jamaica reportable segment, included in our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) for the period from the Acquisition Date through June 30, 2018 ($ in thousands):
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Property, plant and equipment (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Property, Plant and Equipment | The balance of property, plant and equipment is as follows ($ in thousands):
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Related party transactions (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Related Party Transactions [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Related Party Transactions | The following summarizes transactions and arrangements that we have entered into with related parties. The details of the balances between us and related parties as of June 30, 2018 and December 31, 2017 are as follows ($ in thousands):
Transactions between us and related parties during the three and six months ended June 30, 2018 and 2017 were as follows ($ in thousands):
________
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Share-based compensation (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Restricted Share Awards | A summary of our restricted share awards from January 1, 2018 to June 30, 2018 is as follows:
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Summary of Key Inputs Used in Monte-Carlo Simulation | The table below summarizes the key inputs used in the Monte-Carlo simulation ($ in thousands):
________ (1) Expected volatility was determined based on the historical share prices in our industry. (2) The risk-free rate was based on U.S. Treasury zero coupon issues with a remaining term equal to the remaining term of the measurement period. |
Earnings per share (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Calculation of Basic and Diluted EPS | The calculations of basic and diluted EPS are as follows ($ in thousands):
(1) For the six months ended June 30, 2017, Preferred Share dividends of our Predecessor of $7.9 million and the preferred shareholders’ allocation of undistributed earnings of our Predecessor of $1.4 million were not added back for purposes of calculating diluted EPS because the effect of treating our Predecessor's Preferred Shares as if they had been converted to their 15,927,778 ordinary share equivalents as of January 1, 2017 was anti-dilutive. |
Debt (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Debt Components | Debt consists of the following ($ in thousands):
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Derivative financial instruments (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Effects of Derivative Instruments on Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) | The following table presents the location and effects of the derivative instruments in the Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) for the three and six months ended June 30, 2018 and 2017 ($ in thousands):
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Schedule of Location and Fair Value of Derivative Instruments in Condensed Consolidated Balance Sheet | The following table presents the location and fair value of the derivative instruments in the Condensed Consolidated Balance Sheet as of June 30, 2018 and December 31, 2017 ($ in thousands):
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Fair value of financial instruments (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Financial Liabilities Measured at Fair Value on a Recurring Basis | The following table presents our fair value hierarchy for our financial liabilities measured at fair value on a recurring basis as of June 30, 2018 ($ in thousands):
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Reconciliation of Level 3 Fair Valued Instruments | The following table presents the changes in our Level 3 fair valued instruments for the three and six months ended June 30, 2017 ($ in thousands):
________ (1) All losses and gains (other than changes in net assets) were included in interest expense in the Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). |
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Schedule of Financial Liabilities Not Measured at Fair Value | The following tables present our fair value hierarchy for our financial liabilities not measured at fair value as of June 30, 2018 and December 31, 2017 ($ in thousands):
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Summary of Valuation Techniques | The following table summarizes the valuation techniques used to estimate the fair value of our financial liabilities measured at fair value on a recurring basis and our financial liabilities not measured at fair value:
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Employee benefit plan (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Net Periodic Pension (Benefit) Cost | The following table presents the components of net periodic pension (benefit) cost for the three and six months ended June 30, 2018 and 2017 ($ in thousands):
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Other balance sheet items (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Trade and Other Receivables, Net | The following summarizes the balances of trade and other receivables, net as of June 30, 2018 and December 31, 2017 ($ in thousands):
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Schedule of Prepayments and Other Assets | The following summarizes the balances of prepayments and other assets as of June 30, 2018 and December 31, 2017 ($ in thousands):
________
(2) Represents a cash deposit related to the Sanctuary Cap Cana management contract. We are in the process of negotiating final terms for the purchase of a 30% interest in the resort in the second half of 2018, and the deposit will be used towards this purchase if we are able to agree on terms. If the purchase is not completed, this amount, together with an additional $0.8 million due, will be treated as key money. (3) Represents a favorable ground lease intangible acquired in the business combination with the Sagicor Parties (see Note 4). Amortization is recorded in direct expenses in the Condensed Consolidated Statement of Operations and Comprehensive Income (Loss). |
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Schedule of Goodwill | The gross carrying values and accumulated impairment losses of goodwill by reportable segment (refer to discussion of our reportable segments in Note 19) as of June 30, 2018 and December 31, 2017 are as follows ($ in thousands):
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Schedule of Other Intangible Assets, Indefinite-Lived | Other intangible assets as of June 30, 2018 and December 31, 2017 consisted of the following ($ in thousands):
________ (1) Represents software development costs incurred to develop and implement SAP as our integrated enterprise resource planning (“ERP”) system. These costs will be amortized over the ERP system's estimated useful life of 7 years. As of June 30, 2018, the ERP system had not been placed into service. (2) Represents the fair value of a management contract acquired in the business combination with the Sagicor Parties (see Note 4). (3) Our licenses have indefinite lives. Accordingly, there is no associated amortization expense or accumulated amortization. As of June 30, 2018 and December 31, 2017, such indefinite lived assets totaled $0.9 million and $1.0 million, respectively. |
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Schedule of Other Intangible Assets, Finite-Lived | Other intangible assets as of June 30, 2018 and December 31, 2017 consisted of the following ($ in thousands):
________ (1) Represents software development costs incurred to develop and implement SAP as our integrated enterprise resource planning (“ERP”) system. These costs will be amortized over the ERP system's estimated useful life of 7 years. As of June 30, 2018, the ERP system had not been placed into service. (2) Represents the fair value of a management contract acquired in the business combination with the Sagicor Parties (see Note 4). (3) Our licenses have indefinite lives. Accordingly, there is no associated amortization expense or accumulated amortization. As of June 30, 2018 and December 31, 2017, such indefinite lived assets totaled $0.9 million and $1.0 million, respectively. |
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Schedule of Trade and Other Payables | The following summarizes the balances of trade and other payables as of June 30, 2018 and December 31, 2017 ($ in thousands):
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Schedule of Other Liabilities | The following summarizes the balances of other liabilities as of June 30, 2018 and December 31, 2017 ($ in thousands):
________
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Segment information (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Segment Reporting Information | The following tables present segment net revenue, a reconciliation to gross revenue and segment Adjusted EBITDA and a reconciliation to net income (loss) ($ in thousands):
________ (1) Segment net revenue represents total gross revenue less compulsory tips paid to employees, cost reimbursements and other miscellaneous revenue not derived from segment operations.
|
Organization, operations and basis of presentation - Narrative (Details) |
6 Months Ended |
---|---|
Jun. 30, 2018
resort
| |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of resorts in portfolio | 20 |
Number of wholly owned resorts in portfolio | 18 |
Number of resorts managed | 13 |
Number of third-party owned resorts managed | 2 |
Significant accounting policies (Details) - USD ($) |
Jun. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Cumulative adjustment from comparative periods | $ (142,904,000) | $ (181,542,000) |
Accounting Standards Update 2014-09 | Difference between Revenue Guidance in Effect before and after Topic 606 | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Cumulative adjustment from comparative periods | $ 0 |
Revenue - Narrative (Details) - USD ($) |
6 Months Ended | |
---|---|---|
Jun. 30, 2018 |
Dec. 31, 2017 |
|
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Cumulative adjustment from comparative periods | $ (142,904,000) | $ (181,542,000) |
Contract liabilities | 36,100,000 | 40,900,000 |
Package revenues recognized | 33,100,000 | |
Advance deposits acquired in the business combination | 36,058,000 | 43,884,000 |
Sagicor | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Advance deposits acquired in the business combination | $ 5,800,000 | |
Difference between Revenue Guidance in Effect before and after Topic 606 | Accounting Standards Update 2014-09 | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Cumulative adjustment from comparative periods | $ 0 |
Business combinations - Schedule of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands |
Jun. 01, 2018 |
Jun. 30, 2018 |
Dec. 31, 2017 |
---|---|---|---|
Net assets acquired | |||
Goodwill | $ 79,028 | $ 51,731 | |
Sagicor | |||
Business Acquisition [Line Items] | |||
Total purchase consideration | $ 308,528 | ||
Net assets acquired | |||
Working capital | (1,665) | ||
Property, plant and equipment | 309,452 | ||
Identifiable intangible assets and liabilities | 2,197 | ||
Deferred income taxes | (28,753) | ||
Goodwill | 27,297 | ||
Total net assets acquired | $ 308,528 |
Business combinations - Schedule of Identifiable Intangible Assets Acquired (Details) - Sagicor $ in Thousands |
Jun. 01, 2018
USD ($)
|
---|---|
Acquired Finite-Lived Intangible Assets [Line Items] | |
Estimated Fair Value, unfavorable ground lease liability | $ (2,334) |
Weighted-Average Amortization Period, unfavorable ground lease liability | 22 years |
Total identifiable intangibles acquired | $ 2,197 |
Management agreement | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Estimated Fair Value, intangible assets | $ 1,900 |
Weighted-Average Amortization Period, intangible assets | 20 years |
Favorable ground lease asset | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Estimated Fair Value, intangible assets | $ 2,631 |
Weighted-Average Amortization Period, intangible assets | 22 years |
Business combinations - Schedule of Unaudited Pro Forma Results of Operations (Details) - Sagicor - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
|
Business Acquisition [Line Items] | ||||
Pro forma revenue | $ 163,270 | $ 166,101 | $ 372,183 | $ 370,765 |
Pro forma net income (loss) | $ 19,911 | $ (9,517) | $ 50,319 | $ 20,052 |
Pro forma earnings (losses) per share - Basic (in shares) | $ 0.15 | $ (0.08) | $ 0.39 | $ 0.09 |
Pro forma earnings (losses) per share - Diluted (in shares) | $ 0.15 | $ (0.08) | $ 0.39 | $ 0.09 |
Business combinations - Schedule of Sagicor Hotel Properties' Results of Operations (Details) - Sagicor $ in Thousands |
1 Months Ended |
---|---|
Jun. 30, 2018
USD ($)
| |
Business Acquisition [Line Items] | |
Revenue | $ 8,662 |
Net income | $ 2,692 |
Business combinations - Schedule of Consideration Transferred, Recapitalization Transaction (Details) - USD ($) $ in Thousands |
6 Months Ended | ||
---|---|---|---|
Mar. 12, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
|
Business Acquisition [Line Items] | |||
Purchase of all of our Predecessor's cumulative redeemable preferred shares | $ 0 | $ 239,492 | |
Ordinary shares (20,000,000 shares at the Acquisition Date closing price of $10.77 per share, €0.10 par value) | $ 215,400 | $ 0 | |
Recapitalization Transaction | |||
Business Acquisition [Line Items] | |||
Purchase of all of our Predecessor's cumulative redeemable preferred shares | $ 353,873 | ||
Net cash transferred from Pace | 78,859 | ||
Ordinary shares (20,000,000 shares at the Acquisition Date closing price of $10.77 per share, €0.10 par value) | 799 | ||
Total consideration transferred | $ 433,531 | ||
Number of shares agreed to purchase in subscription agreements (in shares) | 82,751 |
Property, plant and equipment - Schedule of Property, Plant and Equipment (Details) - USD ($) $ in Thousands |
Jun. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment, gross | $ 2,096,908 | $ 1,749,727 |
Accumulated depreciation | (312,241) | (283,401) |
Total property, plant and equipment, net | 1,784,667 | 1,466,326 |
Land, buildings and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment, gross | 1,787,043 | 1,493,407 |
Fixtures and machinery | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment, gross | 55,537 | 53,188 |
Furniture and other fixed assets | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment, gross | 205,086 | 173,912 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment, gross | $ 49,242 | $ 29,220 |
Property, plant and equipment - Narrative (Details) - USD ($) |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jul. 12, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
|
Property, Plant and Equipment [Abstract] | |||||
Depreciation expense | $ 15,600,000 | $ 13,600,000 | $ 31,000,000 | $ 25,800,000 | |
Interest expense capitalized on qualifying assets | $ 1,400,000 | $ 0 | 2,100,000 | 0 | |
Property, Plant and Equipment [Line Items] | |||||
Consideration paid upon closing | 40,058,000 | 12,673,000 | |||
Remaining balance due upon opening of resort | $ 290,000 | $ 277,000 | |||
Land | |||||
Property, Plant and Equipment [Line Items] | |||||
Total consideration | $ 56,200,000 | ||||
Consideration paid upon closing | 45,600,000 | ||||
Remaining balance due upon opening of resort | $ 10,600,000 | ||||
Period post beginning of construction of resorts that payment may be due | 2 years |
Income taxes - Narrative (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
|
Income Tax Disclosure [Abstract] | ||||
Statutory income tax rate | 25.00% | |||
Income tax provision (benefit) | $ (3,356) | $ 6,291 | $ 6,227 | $ 19,879 |
Decrease in income tax provision | $ 9,700 | $ 13,700 |
Related party transactions - Details of Balances with Related Parties (Details) - USD ($) $ in Thousands |
Jun. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Related Party Transactions [Abstract] | ||
Accounts receivable | $ 3,090 | $ 1,495 |
Accounts and other payables | $ 3,750 | $ 2,966 |
Related party transactions - Transactions with Related Parties (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
|
Related Party Transaction [Line Items] | ||||
Total transactions with related parties | $ 4,849 | $ 3,678 | $ 9,517 | $ 16,682 |
Hyatt franchise fees | ||||
Related Party Transaction [Line Items] | ||||
Total transactions with related parties | 4,594 | 3,409 | 9,045 | 7,774 |
Lease payments | ||||
Related Party Transaction [Line Items] | ||||
Total transactions with related parties | 255 | 269 | 472 | 578 |
Dividends on the Preferred Shares | ||||
Related Party Transaction [Line Items] | ||||
Total transactions with related parties | 0 | 0 | 0 | 7,922 |
Deferred consideration accretion | ||||
Related Party Transaction [Line Items] | ||||
Total transactions with related parties | 0 | 0 | 0 | 36 |
Interest expense on related party debt | ||||
Related Party Transaction [Line Items] | ||||
Total transactions with related parties | $ 0 | $ 0 | $ 0 | $ 372 |
Commitments and contingencies - Narrative (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
Dec. 31, 2017 |
|
Loss Contingencies [Line Items] | |||||
Tax contingencies | $ 2,347 | $ 2,347 | $ 2,310 | ||
Rental expense under non-cancelable operating leases, including contingent leases | 600 | $ 500 | $ 1,100 | $ 1,000 | |
Electricity | |||||
Loss Contingencies [Line Items] | |||||
Term of electricity supply contract | 5 years | ||||
Straight-line depreciation percent per annum | 20.00% | ||||
Capital Investment | Electricity | |||||
Loss Contingencies [Line Items] | |||||
Obligated refund to supplier should contract be terminated prior to end of contractual term | 1,400 | $ 1,400 | |||
Unearned Rebates | Electricity | |||||
Loss Contingencies [Line Items] | |||||
Obligated refund to supplier should contract be terminated prior to end of contractual term | 600 | 600 | $ 800 | ||
Foreign Tax Authority | Tax and Customs Administration, Netherlands | |||||
Loss Contingencies [Line Items] | |||||
Tax contingencies | $ 1,600 | $ 1,600 |
Warrants - Narrative (Details) - Earnout Warrants |
6 Months Ended |
---|---|
Jun. 30, 2018
day
$ / shares
€ / shares
shares
| |
Class of Warrant or Right [Line Items] | |
Warrants issued (in shares) | 3,000,000 |
Price per share underlying the warrants (in dollars per share) | $ / shares | $ 13 |
Warrants trading days threshold | day | 20 |
Warrants consecutive trading days threshold | day | 30 |
Warrants expiration term | 5 years |
Warrants outstanding (in shares) | 3,000,000 |
Ordinary Shares | |
Class of Warrant or Right [Line Items] | |
Number of shares entitled to each warrant (in shares) | 1 |
Exercise price (in dollars per share) | € / shares | $ 0.10 |
Share-based compensation - Summary of Restricted Stock Awards (Details) - Restricted Share Awards |
6 Months Ended |
---|---|
Jun. 30, 2018
$ / shares
shares
| |
Number of Shares | |
Unvested balance at beginning of period (in shares) | shares | 1,265,830 |
Granted (in shares) | shares | 486,884 |
Vested (in shares) | shares | (181,296) |
Forfeited (in shares) | shares | (22,735) |
Unvested balance at end of period (in shares) | shares | 1,548,683 |
Weighted-Average Grant Date Fair Value | |
Unvested balance at beginning of period (in dollars per share) | $ / shares | $ 10.19 |
Granted (in dollars per share) | $ / shares | 10.78 |
Vested (in dollars per share) | $ / shares | 10.34 |
Forfeited (in dollars per share) | $ / shares | 10.20 |
Unvested balance at end of period (in dollars per share) | $ / shares | $ 10.36 |
Share-based compensation - Summary of Key Inputs (Details) - USD ($) $ in Thousands |
Jan. 02, 2018 |
May 26, 2017 |
---|---|---|
Total Shareholder Return | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Percentage of Total Award | 50.00% | 50.00% |
Grant Date Fair Value by Component | $ 860 | $ 770 |
Volatility | 26.13% | 27.02% |
Interest Rate | 2.00% | 1.39% |
Dividend Yield | 0.00% | 0.00% |
Adjusted EBITDA Comparison | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Percentage of Total Award | 50.00% | 50.00% |
Grant Date Fair Value by Component | $ 1,475 | $ 1,350 |
Volatility | 0.00% | 0.00% |
Interest Rate | 0.00% | 0.00% |
Dividend Yield | 0.00% | 0.00% |
Preferred Shares - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands |
6 Months Ended | ||
---|---|---|---|
Mar. 12, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
|
Business Acquisition [Line Items] | |||
Purchase of preferred shares | $ 0 | $ 239,492 | |
Associated PIK dividends | $ 0 | $ 114,381 | |
Pace Business Combination | |||
Business Acquisition [Line Items] | |||
Purchase price per share (in dollars per share) | $ 8.40 | ||
Purchase of preferred shares | $ 353,873 | ||
Face value | 239,500 | ||
Associated PIK dividends | $ 114,400 |
Debt - Narrative (Details) - Term Loan - USD ($) |
6 Months Ended | |
---|---|---|
Jun. 07, 2018 |
Jun. 30, 2018 |
|
LIBOR | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 2.75% | |
Amendment | ||
Debt Instrument [Line Items] | ||
Face amount | $ 100,000,000.0 | $ 100,000,000.0 |
Decrease in applicable interest rate | 0.50% | |
Amendment | Base Rate | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 1.75% | |
Amendment | LIBOR | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 2.75% | |
Existing Credit Agreement | ||
Debt Instrument [Line Items] | ||
Springing leverage ratio financial maintenance covenant requirement threshold, percent of aggregate revolving credit commitments | 35.00% |
Derivative financial instruments - Narrative (Details) |
Jun. 30, 2018
USD ($)
|
Mar. 29, 2018
contract
|
---|---|---|
Interest rate swaps | ||
Derivative [Line Items] | ||
Number of interest rate swap contracts | contract | 2 | |
Fixed rate | 2.85% | |
Interest Rate Swap One | ||
Derivative [Line Items] | ||
Notional amount | $ 200,000,000 | |
Interest Rate Swap Two | ||
Derivative [Line Items] | ||
Notional amount | $ 600,000,000 |
Derivative financial instruments - Effects on Income Statement (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
|
Interest rate swaps | Interest expense | Derivatives not Designated as Hedging Instruments | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Effects on Income Statement | $ (5,398) | $ 0 | $ 5,627 | $ 0 |
Derivative financial instruments - Location and Fair Value of Derivatives in Balance Sheet (Details) - USD ($) $ in Thousands |
Jun. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Interest rate swaps | Derivatives not Designated as Hedging Instruments | Derivative financial instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability | $ 3,720 | $ 0 |
Fair value of financial instruments - Reconciliation of Level 3 Fair Valued Instruments (Details) - Deferred Consideration - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Jun. 30, 2017 |
Mar. 31, 2017 |
|
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | $ 1,180 | $ 1,836 |
Total (gains) losses included in earnings (or change in net assets) | 675 | (26) |
Settlements | (735) | (630) |
Ending balance | $ 1,120 | $ 1,180 |
Employee benefit plan - Narrative (Details) - USD ($) |
Jun. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Retirement Benefits [Abstract] | ||
Plan assets | $ 0 | $ 0 |
Employee benefit plan - Schedule of Net Periodic Pension (Benefit) Cost (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
|
Retirement Benefits [Abstract] | ||||
Service cost | $ 176 | $ 201 | $ 350 | $ 359 |
Interest cost | 89 | 79 | 176 | 147 |
Effect of foreign exchange rates | (320) | 220 | 25 | 592 |
Amortization of prior service cost | (77) | 0 | (52) | 0 |
Amortization of gain | (4) | (7) | (10) | (15) |
Compensation-non-retirement post employment benefits | 14 | 1 | 18 | 5 |
Settlement gain | 0 | 0 | 0 | (7) |
Net periodic pension (benefit) cost | $ (122) | $ 494 | $ 507 | $ 1,081 |
Other balance sheet items - Schedule of Trade and Other Receivables, Net (Details) - USD ($) $ in Thousands |
Jun. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Gross trade and other receivables | $ 54,651 | $ 52,312 |
Allowance for doubtful accounts | (450) | (785) |
Total trade and other receivables, net | $ 54,201 | $ 51,527 |
Other balance sheet items - Schedule of Prepayments and Other Assets (Details) - USD ($) $ in Thousands |
Dec. 31, 2018 |
Jun. 30, 2018 |
Dec. 31, 2017 |
---|---|---|---|
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Advances to suppliers | $ 8,028 | $ 6,509 | |
Prepaid income taxes | 10,674 | 10,935 | |
Prepaid other taxes | 10,155 | 10,737 | |
Contract deposit | 2,700 | 2,700 | |
Favorable ground lease asset | 2,631 | 0 | |
Other assets | 2,039 | 3,185 | |
Total prepayments and other assets | 36,227 | $ 34,066 | |
Schedule of Equity Method Investments [Line Items] | |||
Additional amount due that will be treated as key money if purchase not completed | $ 800 | ||
Forecast | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership interest planning to purchase | 30.00% |
Other balance sheet items - Schedule of Trade and Other Payables (Details) - USD ($) $ in Thousands |
Jun. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Trade payables | $ 22,882 | $ 18,160 |
Advance deposits | 36,058 | 43,884 |
Withholding and other taxes payable | 42,780 | 34,904 |
Interest payable | 270 | 5,586 |
Payroll and related accruals | 13,852 | 13,848 |
Accrued expenses and other payables | 20,972 | 23,146 |
Total trade and other payables | $ 136,814 | $ 139,528 |
Other balance sheet items - Schedule of Other Liabilities (Details) - USD ($) $ in Thousands |
Jun. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Tax contingencies | $ 2,347 | $ 2,310 |
Pension obligations | 4,936 | 4,456 |
Cap Cana land purchase obligation | 10,625 | 10,625 |
Unfavorable ground lease liability | 2,334 | 0 |
Other | 1,785 | 2,003 |
Total other liabilities | $ 22,027 | $ 19,394 |
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