The Netherlands | 1-38012 | 98-1346104 | ||
(State or Other Jurisdiction of Incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) |
Prins Bernhardplein 200 1097 JB Amsterdam, the Netherlands | Not Applicable | |
(Address of Principal Executive Offices) | (Zip Code) |
☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Title of each Class | Trading Symbol(s) | Name of Each Exchange on Which Registered |
Ordinary Shares, €0.10 par value | PLYA | NASDAQ |
(d) | Exhibits. |
PLAYA HOTELS & RESORTS N.V. | |||
Date: | November 6, 2019 | By: | /s/ Ryan Hymel |
Ryan Hymel | |||
Chief Financial Officer |
Playa Hotels & Resorts N.V. Reports Third Quarter 2019 Results | ||
▪ | Net Loss was $30.5 million compared to a Net Loss of $5.4 million in 2018 |
▪ | Adjusted Net Loss was $30.2 million compared to $9.8 million in 2018 |
▪ | Net Package RevPAR decreased 3.2% over 2018 to $169.58, driven by a 370 basis point decrease in Occupancy and partially offset by a 1.4% increase in Net Package ADR |
▪ | Comparable Net Package RevPAR decreased 2.7% versus 2018 to $174.28, driven by a 0.7% decrease in Net Package ADR, and a 160 basis point decrease in Occupancy |
▪ | Owned Resort EBITDA decreased 26.5% versus 2018 to $25.9 million |
▪ | Owned Resort EBITDA Margin decreased 5.1 percentage points versus 2018 to 20.5% |
▪ | Adjusted EBITDA decreased 39.2% versus 2018 to $15.8 million |
▪ | Adjusted EBITDA Margin decreased 6.4 percentage points versus 2018 to 12.5% |
▪ | Net Income was $13.6 million compared to $33.2 million in 2018 |
▪ | Adjusted Net Income was $17.9 million compared to $38.7 million in 2018 |
▪ | Net Package RevPAR decreased 3.2% versus 2018 to $207.22, driven by a 470 basis point decrease in Occupancy, and partially offset by a 2.6% increase in Net Package ADR |
▪ | Comparable Net Package RevPAR decreased 2.2% versus 2018 to $219.09, driven by a 300 basis point decrease in Occupancy, and partially offset by a 1.5% increase in Net Package ADR |
▪ | Owned Resort EBITDA decreased 6.0% versus 2018 to $157.6 million |
▪ | Owned Resort EBITDA Margin decreased 3.5 percentage points versus 2018 to 33.6% |
▪ | Adjusted EBITDA decreased 7.9% versus 2018 to $130.7 million |
▪ | Adjusted EBITDA Margin decreased 3.6 percentage points versus 2018 to 27.8% |
Page 1 |
Page 2 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||
2019 | 2018 | Change | 2019 | 2018 | Change | ||||||||||||||||
Occupancy | 75.5 | % | 79.2 | % | (3.7 | )pts | 78.5 | % | 83.2 | % | (4.7 | )pts | |||||||||
Net Package ADR | $ | 224.60 | $ | 221.40 | 1.4 | % | $ | 263.99 | $ | 257.25 | 2.6 | % | |||||||||
Net Package RevPAR | $ | 169.58 | $ | 175.27 | (3.2 | )% | $ | 207.22 | $ | 214.10 | (3.2 | )% | |||||||||
Total Net Revenue (1) | $ | 126,157 | $ | 137,681 | (8.4 | )% | $ | 470,552 | $ | 452,586 | 4.0 | % | |||||||||
Owned Net Revenue (2) | $ | 126,060 | $ | 137,529 | (8.3 | )% | $ | 468,954 | $ | 451,740 | 3.8 | % | |||||||||
Owned Resort EBITDA (3) | $ | 25,873 | $ | 35,202 | (26.5 | ) % | $ | 157,624 | $ | 167,736 | (6.0 | )% | |||||||||
Owned Resort EBITDA Margin | 20.5 | % | 25.6 | % | (5.1 | )pts | 33.6 | % | 37.1 | % | (3.5 | )pts | |||||||||
Other corporate | $ | 10,126 | $ | 9,322 | 8.6 | % | $ | 28,519 | $ | 26,331 | 8.3 | % | |||||||||
Management Fee Revenue | $ | 83 | $ | 152 | (45.4 | )% | $ | 1,568 | $ | 503 | 211.7 | % | |||||||||
Adjusted EBITDA (4) | $ | 15,830 | $ | 26,032 | (39.2 | ) % | $ | 130,673 | $ | 141,908 | (7.9 | )% | |||||||||
Adjusted EBITDA Margin | 12.5 | % | 18.9 | % | (6.4 | )pts | 27.8 | % | 31.4 | % | (3.6 | )pts |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||
2019 | 2018 | Change | 2019 | 2018 | Change | ||||||||||||||||
Occupancy | 77.0 | % | 78.6 | % | (1.6 | )pts | 80.3 | % | 83.3 | % | (3.0 | )pts | |||||||||
Net Package ADR | $ | 226.38 | $ | 227.88 | (0.7 | )% | $ | 272.80 | $ | 268.86 | 1.5 | % | |||||||||
Net Package RevPAR | $ | 174.28 | $ | 179.05 | (2.7 | )% | $ | 219.09 | $ | 223.93 | (2.2 | )% | |||||||||
Total Net Revenue (1) | $ | 115,075 | $ | 116,437 | (1.2 | )% | $ | 340,775 | $ | 345,795 | (1.5 | )% | |||||||||
Owned Net Revenue (2) | $ | 114,978 | $ | 116,285 | (1.1 | )% | $ | 339,177 | $ | 344,949 | (1.7 | )% | |||||||||
Owned Resort EBITDA (3) | $ | 27,519 | $ | 28,628 | (3.9 | ) % | $ | 122,705 | $ | 127,880 | (4.0 | )% | |||||||||
Owned Resort EBITDA Margin | 23.9 | % | 24.6 | % | (0.7 | )pts | 36.2 | % | 37.1 | % | (0.9 | )pts | |||||||||
Other corporate | $ | 10,126 | $ | 9,322 | 8.6 | % | $ | 28,519 | $ | 26,331 | 8.3 | % | |||||||||
Management Fee Revenue | $ | 83 | $ | 152 | (45.4 | )% | $ | 1,568 | $ | 503 | 211.7 | % | |||||||||
Adjusted EBITDA (4) | $ | 17,476 | $ | 19,458 | (10.2 | ) % | $ | 95,754 | $ | 102,052 | (6.2 | )% | |||||||||
Adjusted EBITDA Margin | 15.2 | % | 16.7 | % | (1.5 | )pts | 28.1 | % | 29.5 | % | (1.4 | )pts |
(1) | Total Net Revenue represents revenue from the sale of all-inclusive packages, which include room accommodations, food and beverage services and entertainment activities, net of compulsory tips paid to employees, as well as revenue from other goods, services and amenities not included in the all-inclusive package. Government mandated compulsory tips in the Dominican Republic are not included in this adjustment as they are already excluded from revenue in accordance with U.S. GAAP. A description of how we compute Total Net Revenue and a reconciliation of Total Net Revenue to total revenue can be found in the section “Definitions of Non-U.S. GAAP Measures and Operating Statistics” below. Total Net Revenue also includes all Management Fee Revenue. |
(2) | Owned Net Revenue excludes Management Fee Revenue, Jamaica delayed opening accrual reversal and MICE (meetings, incentives, conventions and events) revenue. |
(3) | A description of how we compute Owned Resort EBITDA and a reconciliation of net income to Owned Resort EBITDA can be found in the section “Definitions of Non-U.S. GAAP Measures and Operating Statistics” below. |
(4) | A description of how we compute Adjusted EBITDA and a reconciliation of net income to Adjusted EBITDA can be found in the section “Definitions of Non-U.S. GAAP Measures and Operating Statistics” below. |
(5) | For the three months ended September 30, 2019, the comparable portfolio excludes the following non-comparable resorts: Hilton La Romana All-Inclusive Resort, Hilton Playa del Carmen All-Inclusive Resort, Jewel Grande Montego Bay Resort & Spa and Hyatt Ziva and Hyatt Zilara Cap Cana. For the nine months ended September 30, 2019 the comparable portfolio excludes the following non-comparable resorts: Hilton La Romana All-Inclusive Resort, Hilton Playa del Carmen All-Inclusive Resort, Hilton Rose Hall Resort & Spa, Jewel Runaway Bay Beach & Golf Resort, Jewel Dunn’s River Beach Resort & Spa, Jewel Paradise Cove Beach Resort & Spa, Jewel Grande Montego Bay Resort & Spa and Hyatt Ziva and Hyatt Zilara Cap Cana. |
Page 3 |
Low End | High End | |||
Adjusted EBITDA | $150.0 million | $153.0 million |
• | Comparable revenue growth: low single digit decline; |
• | The change to our full year Adjusted EBITDA forecast primarily reflects the change in our outlook for the Dominican Republic, and the write-off of receivables associated with the bankruptcy of Thomas Cook; |
• | $25 - $30 million of forgone EBITDA owing to the rebranding and renovations at the Hilton La Romana All-Inclusive Resort and the Hilton Playa del Carmen All-Inclusive Resort; |
• | $1 - $2 million in incremental property-level environmental taxes and minimum wage related increases; |
• | A full year contribution from the Sagicor portfolio, which we acquired in June of 2018; and |
• | Potential future acquisitions, dispositions, or management agreement changes are explicitly excluded from our outlook. |
Page 4 |
Page 5 |
Page 6 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Net Package Revenue | |||||||||||||||
Comparable Net Package Revenue | $ | 97,838 | $ | 100,465 | $ | 290,844 | $ | 297,169 | |||||||
Non-comparable Net Package Revenue | 9,116 | 18,345 | 110,793 | 93,196 | |||||||||||
Net Package Revenue | 106,954 | 118,810 | 401,637 | 390,365 | |||||||||||
Net Non-package Revenue | |||||||||||||||
Comparable Net Non-package Revenue | 17,154 | 15,820 | 48,363 | 48,123 | |||||||||||
Non-comparable Net Non-package Revenue | 1,966 | 2,899 | 18,984 | 13,595 | |||||||||||
Net Non-package Revenue | 19,120 | 18,719 | 67,347 | 61,718 | |||||||||||
Management Fee Revenue | |||||||||||||||
Comparable Management Fee Revenue | 83 | 152 | 1,568 | 503 | |||||||||||
Non-comparable Management Fee Revenue | — | — | — | — | |||||||||||
Management Fee Revenue | 83 | 152 | 1,568 | 503 | |||||||||||
Total Net Revenue | |||||||||||||||
Comparable Total Net Revenue | 115,075 | 116,437 | 340,775 | 345,795 | |||||||||||
Non-comparable Total Net Revenue | 11,082 | 21,244 | 129,777 | 106,791 | |||||||||||
Total Net Revenue | 126,157 | 137,681 | 470,552 | 452,586 | |||||||||||
Compulsory tips | 5,082 | 4,904 | 16,969 | 12,296 | |||||||||||
Cost Reimbursements | 1,586 | 227 | 5,123 | 349 | |||||||||||
Total revenue | $ | 132,825 | $ | 142,812 | $ | 492,644 | $ | 465,231 |
Page 7 |
• | Other expense |
• | Pre-opening expense |
• | Transaction expenses |
• | Severance expense |
• | Other tax expense |
• | Gain on property damage insurance proceeds |
• | Share-based compensation |
• | Loss on extinguishment of debt |
• | 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; impairment losses and Jamaica delayed opening accrual reversals. |
Page 8 |
Page 9 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Net (loss) income | $ | (30,461 | ) | $ | (5,422 | ) | $ | 13,567 | $ | 33,216 | |||||
Interest expense | 9,936 | 7,637 | 34,796 | 35,151 | |||||||||||
Income tax provision (benefit) | 1,530 | 379 | (10,025 | ) | 6,606 | ||||||||||
Depreciation and amortization (a) | 29,417 | 20,138 | 77,636 | 51,709 | |||||||||||
EBITDA | 10,422 | 22,732 | 115,974 | 126,682 | |||||||||||
Other expense (b) | 2,537 | 390 | 2,775 | 1,836 | |||||||||||
Share-based compensation | 1,850 | 1,182 | 6,612 | 5,072 | |||||||||||
Pre-opening expenses | 257 | 87 | 548 | 87 | |||||||||||
Transaction expense (c) | 1,253 | 1,447 | 4,493 | 7,678 | |||||||||||
Severance expense (d) | 6 | 333 | 139 | 333 | |||||||||||
Other tax (benefit) expense (e) | (318 | ) | 399 | 484 | 1,257 | ||||||||||
Jamaica delayed opening accrual reversal (f) | — | — | — | (342 | ) | ||||||||||
Gain on property damage insurance proceeds | — | (203 | ) | — | (203 | ) | |||||||||
Non-service cost components of net periodic pension cost (g) | (177 | ) | (335 | ) | (352 | ) | (492 | ) | |||||||
Adjusted EBITDA | 15,830 | 26,032 | 130,673 | 141,908 | |||||||||||
Other corporate | 10,126 | 9,322 | 28,519 | 26,331 | |||||||||||
Management fee income | (83 | ) | (152 | ) | (1,568 | ) | (503 | ) | |||||||
Owned Resort EBITDA | 25,873 | 35,202 | 157,624 | 167,736 | |||||||||||
Less: Non-comparable Owned Resort EBITDA (h) | (1,646 | ) | 6,574 | 34,919 | 39,856 | ||||||||||
Comparable Owned Resort EBITDA | $ | 27,519 | $ | 28,628 | $ | 122,705 | $ | 127,880 |
(a) | The increases in depreciation and amortization expense for the three and nine months ended September 30, 2019 were a result of renovations at the Hilton La Romana All-Inclusive Resort and Hilton Playa del Carmen All-Inclusive Resort, which included accelerated depreciation on asset disposals. |
(b) | Represents changes in foreign exchange and other miscellaneous expenses or income. |
(c) | Represents expenses incurred in connection with corporate initiatives, such as: debt refinancing costs; other capital raising efforts including our business combination with Sagicor in 2018; the redesign and build-out of our internal controls and strategic initiatives, such as the launch of a new resort or possible expansion into new markets. |
(d) | Represents expenses incurred for employee terminations. |
(e) | 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. Other Tax Benefit in the third quarter of 2019 is related to an asset tax exemption received within the quarter, which resulted in a reversal of the previously recorded expense. |
(f) | 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. |
(g) | Represents the non-service cost components of net periodic pension cost recorded within other expense in the Condensed Consolidated Statements of Operations. We include these costs for the purposes of calculating Adjusted EBITDA as they are considered part of our ongoing resort operations. |
(h) | Non-comparable Owned Resort EBITDA for the three months ended September 30, 2019 includes the Hilton La Romana All-Inclusive Resort, Hilton Playa del Carmen All-Inclusive Resort, Jewel Grande Montego Bay Resort & Spa and Hyatt Ziva and Hyatt Zilara Cap Cana. Non-comparable Owned Resort EBITDA for the nine months ended September 30, 2019 includes the Hilton La Romana All-Inclusive Resort, Hilton Playa del Carmen All-Inclusive Resort, Hilton Rose Hall Resort & Spa, Jewel Runaway Bay Beach & Golf Resort, Jewel Dunn’s River Beach Resort & Spa, Jewel Paradise Cove Beach Resort & Spa, Jewel Grande Montego Bay Resort & Spa and Hyatt Ziva and Hyatt Zilara Cap Cana. |
Page 10 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Net (loss) income | $ | (30,461 | ) | $ | (5,422 | ) | $ | 13,567 | $ | 33,216 | |||||
Reconciling items | |||||||||||||||
Transaction expense (a) | 1,253 | 1,447 | 4,493 | 7,678 | |||||||||||
Change in fair value of interest rate swaps (b) | — | (5,545 | ) | 2,001 | (1,858 | ) | |||||||||
Amortization of interest rate swaps (c) | (912 | ) | — | (1,814 | ) | — | |||||||||
Gain on property damage insurance proceeds (d) | — | (203 | ) | — | (203 | ) | |||||||||
Total reconciling items before tax | 341 | (4,301 | ) | 4,680 | 5,617 | ||||||||||
Income tax provision for reconciling items | (121 | ) | (31 | ) | (346 | ) | (89 | ) | |||||||
Total reconciling items after tax | 220 | (4,332 | ) | 4,334 | 5,528 | ||||||||||
Adjusted net (loss) income | $ | (30,241 | ) | $ | (9,754 | ) | $ | 17,901 | $ | 38,744 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Adjusted net (loss) income | $ | (30,241 | ) | $ | (9,754 | ) | $ | 17,901 | $ | 38,744 | |||||
(Losses) earnings per share - Diluted | $ | (0.23 | ) | $ | (0.04 | ) | $ | 0.10 | $ | 0.28 | |||||
Total reconciling items impact per diluted share | — | (0.03 | ) | 0.03 | 0.05 | ||||||||||
Adjusted (losses) earnings per share - Diluted | $ | (0.23 | ) | $ | (0.07 | ) | $ | 0.13 | $ | 0.33 |
(a) | Represents expenses incurred in connection with corporate initiatives, such as: debt refinancing costs; other capital raising efforts including our business combination with Sagicor in 2018; the redesign and build-out of our internal controls and strategic initiatives, such as the launch of a new resort or possible expansion into new markets. |
(b) | Represents the change in fair value, excluding interest paid and accrued, of our interest rate swaps recognized as interest expense in our Condensed Consolidated Statements of Operations prior to our adoption of hedge accounting on March 20, 2019. |
(c) | Represents the non-cash amortization of the change in fair value of our interest rate swaps recorded in interest expense prior to our adoption of hedge accounting on March 20, 2019, which results in the reclassification from interest expense in our Condensed Consolidated Statements of Operations to other comprehensive (loss) income in our Condensed Consolidated Statements of Comprehensive (Loss) Income. |
(d) | Represents a portion of the insurance proceeds related to property insurance and not business interruption proceeds. |
Page 11 |
As of September 30, | As of December 31, | ||||||
2019 | 2018 | ||||||
ASSETS | |||||||
Cash and cash equivalents | $ | 28,165 | $ | 116,353 | |||
Trade and other receivables, net | 45,391 | 64,770 | |||||
Accounts receivable from related parties | 3,715 | 6,430 | |||||
Inventories | 15,073 | 15,390 | |||||
Prepayments and other assets | 44,397 | 32,617 | |||||
Property and equipment, net | 1,899,190 | 1,808,412 | |||||
Goodwill | 84,507 | 83,656 | |||||
Other intangible assets | 7,826 | 6,103 | |||||
Deferred tax assets | 15,931 | 1,427 | |||||
Total assets | $ | 2,144,195 | $ | 2,135,158 | |||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||
Trade and other payables | $ | 155,449 | $ | 159,600 | |||
Payables to related parties | 7,868 | 4,320 | |||||
Income tax payable | 321 | 1,899 | |||||
Debt | 982,838 | 989,387 | |||||
Derivative financial instruments | 37,905 | 12,476 | |||||
Other liabilities | 29,861 | 21,602 | |||||
Deferred tax liabilities | 105,652 | 106,033 | |||||
Total liabilities | $ | 1,319,894 | $ | 1,295,317 | |||
Commitments and contingencies | |||||||
Shareholders' equity | |||||||
Ordinary shares (par value €0.10; 500,000,000 shares authorized, 130,894,830 shares issued and 129,491,038 shares outstanding as of September 30, 2019, and 130,494,734 shares issued and 130,440,126 shares outstanding as of December 31, 2018) | 14,206 | 14,161 | |||||
Treasury shares (at cost, 1,403,792 shares as of September 30, 2019 and 54,608 shares as of December 31, 2018) | (10,701 | ) | (394 | ) | |||
Paid-in capital | 998,864 | 992,297 | |||||
Accumulated other comprehensive loss | (29,070 | ) | (3,658 | ) | |||
Accumulated deficit | (148,998 | ) | (162,565 | ) | |||
Total shareholders' equity | 824,301 | 839,841 | |||||
Total liabilities and shareholders' equity | $ | 2,144,195 | $ | 2,135,158 |
Page 12 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Revenue | |||||||||||||||
Package | $ | 111,091 | $ | 123,633 | $ | 416,978 | $ | 402,627 | |||||||
Non-package | 20,065 | 18,800 | 68,975 | 61,752 | |||||||||||
Management fees | 83 | 152 | 1,568 | 503 | |||||||||||
Cost reimbursements | 1,586 | 227 | 5,123 | 349 | |||||||||||
Total revenue | 132,825 | 142,812 | 492,644 | 465,231 | |||||||||||
Direct and selling, general and administrative expenses | |||||||||||||||
Direct | 87,252 | 91,573 | 273,577 | 250,742 | |||||||||||
Selling, general and administrative | 30,771 | 28,489 | 94,647 | 87,742 | |||||||||||
Pre-opening | 257 | 87 | 548 | 87 | |||||||||||
Depreciation and amortization | 29,417 | 20,138 | 77,636 | 51,709 | |||||||||||
Reimbursed costs | 1,586 | 227 | 5,123 | 349 | |||||||||||
Gain on insurance proceeds | — | (686 | ) | — | (2,207 | ) | |||||||||
Direct and selling, general and administrative expenses | 149,283 | 139,828 | 451,531 | 388,422 | |||||||||||
Operating (loss) income | (16,458 | ) | 2,984 | 41,113 | 76,809 | ||||||||||
Interest expense | (9,936 | ) | (7,637 | ) | (34,796 | ) | (35,151 | ) | |||||||
Other expense | (2,537 | ) | (390 | ) | (2,775 | ) | (1,836 | ) | |||||||
Net (loss) income before tax | (28,931 | ) | (5,043 | ) | 3,542 | 39,822 | |||||||||
Income tax (provision) benefit | (1,530 | ) | (379 | ) | 10,025 | (6,606 | ) | ||||||||
Net (loss) income | $ | (30,461 | ) | $ | (5,422 | ) | $ | 13,567 | $ | 33,216 | |||||
Earnings per share | |||||||||||||||
(Losses) earnings per share - Basic | $ | (0.23 | ) | $ | (0.04 | ) | $ | 0.10 | $ | 0.28 | |||||
(Losses) earnings per share - Diluted | $ | (0.23 | ) | $ | (0.04 | ) | $ | 0.10 | $ | 0.28 | |||||
Weighted average number of shares outstanding during the period - Basic | 129,841,264 | 130,478,993 | 130,265,112 | 119,344,659 | |||||||||||
Weighted average number of shares outstanding during the period - Diluted | 129,841,264 | 130,478,993 | 130,601,247 | 119,647,364 |
Page 13 |
Maturity | Applicable Rate | LTM Interest (4) | ||||||||||||
Debt | Date | # of Years | Balance | |||||||||||
Revolving credit facility (1) | Apr-22 | 2.6 | $ | — | 0.5 | % | 0.5 | |||||||
Term loan (2) | Apr-24 | 4.6 | 989.0 | 5.4 | % | 55.7 | ||||||||
Total debt | $ | 989.0 | 5.4 | % | 56.2 | |||||||||
Less: cash and cash equivalents (3) | 28.2 | |||||||||||||
Net debt (face) | $ | 960.8 | ||||||||||||
Less: Cap Cana spending to date | 246.6 | |||||||||||||
Adjusted net debt | $ | 714.2 |
(1) | As of September 30, 2019, the total borrowing capacity under our revolving credit facility was $100.0 million. The interest rate on outstanding balances of our revolving credit facility is L+300 bps with no LIBOR floor. As of September 30, 2019, the commitment fee on undrawn balances of our revolving credit facility was 0.5%. |
(2) | The interest rate on our term loan is L+275 bps with a LIBOR floor of 1%. The interest rate was 4.79% as of September 30, 2019, which includes the LIBOR rate that was locked in on September 27, 2019 for the 1-month period of September 30, 2019 to October 30, 2019. Effective March 29, 2018, we entered into two interest rate swaps to mitigate the long term interest rate risk inherent in our variable rate Term Loan. The interest rate swaps have an aggregate fixed notional value of $800.0 million. The fixed rate paid by us is 2.85% and the variable rate received resets monthly to the one-month LIBOR rate. |
(3) | Based on cash balances on hand as of September 30, 2019. |
(4) | Represents last twelve months interest expense and commitment fee. The impact of amortization of deferred financing costs and discounts, capitalized interest and the change in fair market value of our interest rate swaps before we elected hedge accounting is excluded. |
Page 14 |
Occupancy | Net Package ADR | Net Package RevPAR | Owned Net Revenue | Owned Resort EBITDA | Owned Resort EBITDA Margin | |||||||||||||||||||||||||||||||||||||||||||||||
Total Portfolio | Rooms | 2019 | 2018 | Pts Change | 2019 | 2018 | % Change | 2019 | 2018 | % Change | 2019 | 2018 | % Change | 2019 | 2018 | % Change | 2019 | 2018 | Pts Change | |||||||||||||||||||||||||||||||||
Yucatán Peninsula | 2,722 | 85.3 | % | 84.4 | % | 0.9 | pts | $ | 225.21 | $ | 239.94 | (6.1 | )% | $ | 192.00 | $ | 202.62 | (5.2 | )% | $ | 50,996 | $ | 57,087 | (10.7 | )% | $ | 13,777 | $ | 18,484 | (25.5 | )% | 27.0 | % | 32.4 | % | (5.4 | )pts | |||||||||||||||
Pacific Coast | 926 | 76.1 | % | 72.5 | % | 3.6 | pts | $ | 236.24 | $ | 227.42 | 3.9 | % | $ | 179.66 | $ | 164.86 | 9.0 | % | 17,404 | 16,211 | 7.4 | % | 4,495 | 2,869 | 56.7 | % | 25.8 | % | 17.7 | % | 8.1 | pts | |||||||||||||||||||
Dominican Republic | 1,890 | 54.9 | % | 79.6 | % | (24.7 | )pts | $ | 156.30 | $ | 165.90 | (5.8 | )% | $ | 85.85 | $ | 132.10 | (35.0 | )% | 14,585 | 27,580 | (47.1 | )% | (1,201 | ) | 7,161 | (116.8 | )% | (8.2 | )% | 26.0 | % | (34.2 | )pts | ||||||||||||||||||
Jamaica | 1,946 | 78.3 | % | 74.3 | % | 4.0 | pts | $ | 254.72 | $ | 247.82 | 2.8 | % | $ | 199.40 | $ | 184.18 | 8.3 | % | 43,075 | 36,651 | 17.5 | % | 8,802 | 6,688 | 31.6 | % | 20.4 | % | 18.2 | % | 2.2 | pts | |||||||||||||||||||
Total Portfolio | 7,484 | 75.5 | % | 79.2 | % | (3.7 | )pts | $ | 224.60 | $ | 221.40 | 1.4 | % | $ | 169.58 | $ | 175.27 | (3.2 | )% | $ | 126,060 | $ | 137,529 | (8.3 | )% | $ | 25,873 | $ | 35,202 | (26.5 | )% | 20.5 | % | 25.6 | % | (5.1 | )pts | |||||||||||||||
Occupancy | Net Package ADR | Net Package RevPAR | Owned Net Revenue | Owned Resort EBITDA | Owned Resort EBITDA Margin | |||||||||||||||||||||||||||||||||||||||||||||||
Comparable Portfolio | Rooms | 2019 | 2018 | Pts Change | 2019 | 2018 | % Change | 2019 | 2018 | % Change | 2019 | 2018 | % Change | 2019 | 2018 | % Change | 2019 | 2018 | Pts Change | |||||||||||||||||||||||||||||||||
Yucatán Peninsula | 2,198 | 85.2 | % | 84.4 | % | 0.8 | pts | $ | 227.14 | $ | 242.41 | (6.3 | )% | $ | 193.56 | $ | 204.56 | (5.4 | )% | $ | 44,825 | $ | 46,665 | (3.9 | )% | $ | 13,423 | $ | 14,814 | (9.4 | )% | 29.9 | % | 31.7 | % | (1.8 | )pts | |||||||||||||||
Pacific Coast | 926 | 76.1 | % | 72.5 | % | 3.6 | pts | $ | 236.24 | $ | 227.42 | 3.9 | % | $ | 179.66 | $ | 164.86 | 9.0 | % | 17,404 | 16,211 | 7.4 | % | 4,495 | 2,869 | 56.7 | % | 25.8 | % | 17.7 | % | 8.1 | pts | |||||||||||||||||||
Dominican Republic | 1,120 | 59.6 | % | 79.3 | % | (19.7 | )pts | $ | 153.45 | $ | 166.89 | (8.1 | )% | $ | 91.53 | $ | 132.27 | (30.8 | )% | 11,933 | 16,758 | (28.8 | )% | 811 | 4,257 | (80.9 | )% | 6.8 | % | 25.4 | % | (18.6 | )pts | |||||||||||||||||||
Jamaica | 1,858 | 78.2 | % | 74.3 | % | 3.9 | pts | $ | 254.16 | $ | 247.82 | 2.6 | % | $ | 198.67 | $ | 184.18 | 7.9 | % | 40,816 | 36,651 | 11.4 | % | 8,790 | 6,688 | 31.4 | % | 21.5 | % | 18.2 | % | 3.3 | pts | |||||||||||||||||||
Total Comparable Portfolio | 6,102 | 77.0 | % | 78.6 | % | (1.6 | )pts | $ | 226.38 | $ | 227.88 | (0.7 | )% | $ | 174.28 | $ | 179.05 | (2.7 | )% | $ | 114,978 | $ | 116,285 | (1.1 | )% | $ | 27,519 | $ | 28,628 | (3.9 | )% | 23.9 | % | 24.6 | % | (0.7 | )pts |
▪ | Comparable Net Package RevPAR decreased 5.4% over the same period in the prior year, driven by a decrease in Net Package ADR of 6.3% and partially offset by an increase in Occupancy of 80 basis points. |
▪ | Comparable Owned Resort EBITDA decreased $1.4 million or 9.4% over the prior year. |
▪ | Excluding Hyatt Ziva Cancún, Comparable Owned Resort EBITDA at all other properties decreased $2.0 million compared to the three months ended September 30, 2018. |
▪ | Comparable Net Package RevPAR increased 9.0% over the same period in the prior year, driven by an increase in Occupancy of 360 basis points and an increase in Net Package ADR of 3.9%. |
▪ | Comparable Owned Resort EBITDA increased $1.6 million or 56.7% over the prior year. |
▪ | This increase was due to increased Comparable Owned Net Revenue, as well as a continued focus on controlling operating expenses by both properties within this segment. |
▪ | Comparable Net Package RevPAR decreased 30.8% over the same period in prior year, driven by a decrease in Occupancy of 1,970 basis points and a decrease in Net Package ADR of 8.1%. |
▪ | Comparable Owned Resort EBITDA decreased $3.4 million, or 80.9%, over the prior year. |
▪ | This decrease was a direct impact of the decrease in Comparable Net Package RevPAR discussed above. The negative press regarding the Dominican Republic, and corresponding near-term business disruption, had a negative impact on third quarter results in this segment. |
▪ | Comparable Net Package RevPAR increased 7.9% over the same period in prior year, driven by an increase in Net Package ADR of 2.6% and an increase in Occupancy of 390 basis points. |
▪ | Comparable Owned Resort EBITDA increased $2.1 million, or 31.4%, over the prior year. |
▪ | This increase was due to the performance of Hyatt Ziva and Hyatt Zilara Rose Hall which accounted for a $1.8 million increase compared to three months ended September 30, 2018. This property continues to show positive results after the completion of renovations in 2017 combined with improvements in cost control and expansion of direct sales channels. |
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Occupancy | Net Package ADR | Net Package RevPAR | Owned Net Revenue | Owned Resort EBITDA | Owned Resort EBITDA Margin | |||||||||||||||||||||||||||||||||||||||||||||||
Total Portfolio | Rooms | 2019 | 2018 | Pts Change | 2019 | 2018 | % Change | 2019 | 2018 | % Change | 2019 | 2018 | % Change | 2019 | 2018 | % Change | 2019 | 2018 | Pts Change | |||||||||||||||||||||||||||||||||
Yucatán Peninsula | 2,722 | 84.9 | % | 87.0 | % | (2.1 | )pts | $ | 261.93 | $ | 276.11 | (5.1 | )% | $ | 222.42 | $ | 240.17 | (7.4 | )% | $ | 180,981 | $ | 200,025 | (9.5 | )% | $ | 67,087 | $ | 83,814 | (20.0 | )% | 37.1 | % | 41.9 | % | (4.8 | )pts | |||||||||||||||
Pacific Coast | 926 | 76.2 | % | 76.7 | % | (0.5 | )pts | $ | 292.73 | $ | 282.56 | 3.6 | % | $ | 222.92 | $ | 216.77 | 2.8 | % | 65,061 | 65,081 | — | % | 25,451 | 23,327 | 9.1 | % | 39.1 | % | 35.8 | % | 3.3 | pts | |||||||||||||||||||
Dominican Republic | 1,890 | 66.9 | % | 84.8 | % | (17.9 | )pts | $ | 196.91 | $ | 193.11 | 2.0 | % | $ | 131.77 | $ | 163.72 | (19.5 | )% | 70,226 | 99,493 | (29.4 | )% | 17,305 | 35,174 | (50.8 | )% | 24.6 | % | 35.4 | % | (10.8 | )pts | |||||||||||||||||||
Jamaica | 1,946 | 80.6 | % | 77.2 | % | 3.4 | pts | $ | 300.38 | $ | 301.13 | (0.2 | )% | $ | 242.26 | $ | 232.44 | 4.2 | % | 152,686 | 87,141 | 75.2 | % | 47,781 | 25,421 | 88.0 | % | 31.3 | % | 29.2 | % | 2.1 | pts | |||||||||||||||||||
Total Portfolio | 7,484 | 78.5 | % | 83.2 | % | (4.7 | )pts | $ | 263.99 | $ | 257.25 | 2.6 | % | $ | 207.22 | $ | 214.10 | (3.2 | )% | $ | 468,954 | $ | 451,740 | 3.8 | % | $ | 157,624 | $ | 167,736 | (6.0 | )% | 33.6 | % | 37.1 | % | (3.5 | )pts | |||||||||||||||
Occupancy | Net Package ADR | Net Package RevPAR | Owned Net Revenue | Owned Resort EBITDA | Owned Resort EBITDA Margin | |||||||||||||||||||||||||||||||||||||||||||||||
Comparable Portfolio | Rooms | 2019 | 2018 | Pts Change | 2019 | 2018 | % Change | 2019 | 2018 | % Change | 2019 | 2018 | % Change | 2019 | 2018 | % Change | 2019 | 2018 | Pts Change | |||||||||||||||||||||||||||||||||
Yucatán Peninsula | 2,198 | 85.4 | % | 87.4 | % | (2.0 | )pts | $ | 262.09 | $ | 273.11 | (4.0 | )% | $ | 223.78 | $ | 238.73 | (6.3 | )% | $ | 152,977 | $ | 161,410 | (5.2 | )% | $ | 57,695 | $ | 64,943 | (11.2 | )% | 37.7 | % | 40.2 | % | (2.5 | )pts | |||||||||||||||
Pacific Coast | 926 | 76.2 | % | 76.7 | % | (0.5 | )pts | $ | 292.73 | $ | 282.56 | 3.6 | % | $ | 222.92 | $ | 216.77 | 2.8 | % | 65,061 | 65,081 | — | % | 25,451 | 23,327 | 9.1 | % | 39.1 | % | 35.8 | % | 3.3 | pts | |||||||||||||||||||
Dominican Republic | 1,120 | 76.1 | % | 85.0 | % | (8.9 | )pts | $ | 197.27 | $ | 194.71 | 1.3 | % | $ | 150.12 | $ | 165.47 | (9.3 | )% | 55,449 | 60,536 | (8.4 | )% | 16,787 | 21,549 | (22.1 | )% | 30.3 | % | 35.6 | % | (5.3 | )pts | |||||||||||||||||||
Jamaica | 620 | 76.2 | % | 75.5 | % | 0.7 | pts | $ | 421.88 | $ | 381.51 | 10.6 | % | $ | 321.36 | $ | 287.85 | 11.6 | % | 65,690 | 57,922 | 13.4 | % | 22,772 | 18,061 | 26.1 | % | 34.7 | % | 31.2 | % | 3.5 | pts | |||||||||||||||||||
Total Comparable Portfolio | 4,864 | 80.3 | % | 83.3 | % | (3.0 | )pts | $ | 272.80 | $ | 268.86 | 1.5 | % | $ | 219.09 | $ | 223.93 | (2.2 | )% | $ | 339,177 | $ | 344,949 | (1.7 | )% | $ | 122,705 | $ | 127,880 | (4.0 | )% | 36.2 | % | 37.1 | % | (0.9 | )pts |
▪ | Comparable Net Package RevPAR decreased 6.3% over the same period in prior year, driven by a decrease in Net Package ADR of 4.0% and a decrease in Occupancy of 200 basis points. |
▪ | Comparable Owned Resort EBITDA decreased $7.2 million or 11.2% over the prior year. |
▪ | Excluding Panama Jack Resorts Cancún, Comparable Owned Resort EBITDA at all other properties decreased $7.5 million compared to the nine months ended September 30, 2018. All properties within this segment have also been affected by increased insurance premiums and energy costs year over year which contributed to a $1.0 million decrease in Comparable Owned Resort EBITDA compared to the nine months ended September 30, 2018. |
▪ | Comparable Net Package RevPAR increased 2.8% over the same period in prior year, driven by an increase in Net Package ADR of 3.6% and partially offset by a decrease in Occupancy of 50 basis points. |
▪ | Comparable Owned Resort EBITDA increased $2.1 million or 9.1% over the prior year. |
▪ | Comparable Net Package RevPAR decreased 9.3% over the same period in prior year, driven by a decrease in Occupancy of 890 basis points and partially offset by an increase in Net Package ADR of 1.3%. |
▪ | Comparable Owned Resort EBITDA decreased $4.8 million, or 22.1%, over the prior year. |
▪ | This decrease was due to the performance of all properties in this segment, driven primarily by Dreams Punta Cana due to a non-recurring prior year gain from business interruption insurance proceeds of $1.5 million received during the nine months ended September 30, 2018. The negative press regarding the Dominican Republic, and corresponding near-term business disruption, had a negative impact on third quarter results in this segment. |
▪ | Comparable Net Package RevPAR increased 11.6% over the same period in prior year, driven by an increase in Net Package ADR of 10.6% and an increase in Occupancy of 70 basis points. |
▪ | Comparable Owned Resort EBITDA increased $4.7 million, or 26.1%, over the prior year. |
▪ | This increase was due to the performance of Hyatt Ziva and Hyatt Zilara Rose Hall, which accounted for the full $4.7 million increase in Comparable Owned Resort EBITDA compared to the nine months ended September 30, 2018. This property continues to show positive growth after the completion of renovations in 2017. |
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