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Business segments
 9 Months Ended
Sep. 30, 2022
Segment Reporting [Abstract]  
Business segments Business segments
We consider each one of our owned 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 present four separate reportable segments by geography: (i) Yucatán Peninsula, (ii) Pacific Coast, (iii) Dominican Republic and (iv) Jamaica. For the three and nine months ended September 30, 2022 and 2021, 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.
The performance of our business is evaluated primarily on adjusted earnings before interest expense, income tax (provision) benefit, and depreciation and amortization expense (“Adjusted EBITDA”) and the performance of our segments is evaluated on Adjusted EBITDA before corporate expenses and management fee income (“Owned Resort EBITDA”). Adjusted EBITDA and Owned Resort EBITDA should not be considered alternatives to net (loss) income or other measures of financial performance or liquidity derived in accordance with U.S. GAAP.
We define Adjusted EBITDA as net (loss) income, determined in accordance with U.S. GAAP, for the periods presented, before interest expense, income tax (provision) benefit, and depreciation and amortization expense, further adjusted to exclude the following items: (a) impairment loss; (b) loss (gain) on sale of assets; (c) other income (expense); (d) repairs from hurricanes and tropical storms; (e) share-based compensation; (f) other tax expense; (g) transaction expenses; (h) contract termination costs and (i) severance expenses. Adjusted EBITDA includes corporate expenses, which are overhead costs that are essential to support the operation of the Company, including the operations and development of our resorts.
There are limitations to using financial measures such as Adjusted EBITDA and Owned Resort 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 table presents segment owned net revenue and a reconciliation to total revenue for the three and nine months ended September 30, 2022 and 2021 ($ in thousands):
Three Months Ended September 30,Nine Months Ended September 30,
2022202120222021
Owned net revenue
Yucatán Peninsula$65,594 $51,209 $204,200 $129,879 
Pacific Coast30,301 21,982 92,901 51,117 
Dominican Republic55,190 42,794 189,714 97,563 
Jamaica43,759 29,502 131,781 65,358 
Segment owned net revenue (1)
194,844 145,487 618,596 343,917 
Other716 232 1,878 726 
Management fees786 673 3,186 1,469 
Cost reimbursements2,836 1,072 6,868 2,554 
Compulsory tips5,440 3,823 14,935 9,170 
Total revenue$204,622 $151,287 $645,463 $357,836 
________
(1) Segment owned net revenue represents total revenue less compulsory tips paid to employees, cost reimbursements, management fees and other miscellaneous revenue not derived from segment operations.
The following table presents segment Owned Resort EBITDA, Adjusted EBITDA and a reconciliation to net (loss) income for the three and nine months ended September 30, 2022 and 2021 ($ in thousands):
Three Months Ended September 30,Nine Months Ended September 30,
2022202120222021
Owned Resort EBITDA
Yucatán Peninsula$21,617 $17,518 $77,049 $37,714 
Pacific Coast10,512 6,429 36,966 13,992 
Dominican Republic14,014 11,267 63,138 20,859 
Jamaica11,267 5,632 40,567 6,924 
Segment Owned Resort EBITDA57,410 40,846 217,720 79,489 
Other corporate (1)
(13,322)(9,749)(37,385)(28,778)
Management fees786 673 3,186 1,469 
Adjusted EBITDA44,874 31,770 183,521 52,180 
Interest expense(17,832)(19,047)(39,892)(56,164)
Depreciation and amortization(19,502)(19,927)(58,630)(60,827)
Impairment loss— — — (24,011)
(Loss) gain on sale of assets(2)4 (11)(644)
Other income (expense)2,608 587 7,850 (747)
Repairs from hurricanes and tropical storms(8,850)(435)(8,850)(435)
Share-based compensation(2,777)(3,270)(9,043)(9,899)
Other tax expense— (67)— (228)
Transaction expenses(582)(210)(1,384)(928)
Contract termination costs— (400)— (400)
Severance expense— — — (1,287)
Non-service cost components of net periodic pension cost (benefit) (2)
102 (16)650 463 
Net (loss) income before tax(1,961)(11,011)74,211 (102,927)
Income tax (provision) benefit(268)(1,360)(3,168)13,043 
Net (loss) income$(2,229)$(12,371)$71,043 $(89,884)
________
(1) Other corporate includes revenue generated by The Playa Collection of $0.6 million and $1.3 million for the three and nine months ended September 30, 2022, respectively.
(2) Represents the non-service cost components of net periodic pension cost or benefit recorded within other income (expense) in the Condensed Consolidated Statements of Operations. We include these costs in calculating Adjusted EBITDA as they are considered part of our ongoing resort operations.
The following table presents segment property and equipment, gross and a reconciliation to total property and equipment, net as of September 30, 2022 and December 31, 2021 ($ in thousands):
As of September 30,As of December 31,
20222021
Segment property and equipment, gross
Yucatán Peninsula$673,447 $667,618 
Pacific Coast290,570 288,309 
Dominican Republic688,664 684,187 
Jamaica411,700 408,107 
Total segment property and equipment, gross2,064,381 2,048,221 
Corporate property and equipment, gross5,355 4,802 
Accumulated depreciation(522,141)(468,449)
Total property and equipment, net$1,547,595 $1,584,574 
The following table presents segment capital expenditures and a reconciliation to total capital expenditures for the nine months ended September 30, 2022 and 2021 ($ in thousands):
Nine Months Ended September 30,
20222021
Segment capital expenditures
Yucatán Peninsula$6,870 $2,709 
Pacific Coast3,817 536 
Dominican Republic6,249 1,874 
Jamaica3,999 3,288 
Total segment capital expenditures (1)
20,935 8,407 
Corporate570 256 
Total capital expenditures (1)
$21,505 $8,663 
________
(1) Represents gross additions to property and equipment