DALLAS, Aug. 3, 2017 /PRNewswire/ -- Ashford Inc.
(NYSE American: AINC) (the "Company") today reported the following
results and performance measures for the second quarter ended
June 30, 2017. Unless otherwise
stated, all reported results compare the second quarter ended
June 30, 2017, with the second
quarter ended June 30, 2016 (see
discussion below). The reconciliation of non-GAAP financial
measures is included in the financial tables accompanying this
press release.
STRATEGIC OVERVIEW
- High-growth, fee-based, low-capex business model
- Diversified platform of multiple fee generators
- Seeks to grow in three primary areas:
-
- Expanding the existing platforms accretively and accelerating
performance to earn incentive fees
- Starting new platforms for additional base and incentive
fees
- Investing in or incubating strategic businesses that can
achieve accelerated growth through doing business with our existing
platforms and by leveraging our deep knowledge and extensive
relationships within the hospitality sector.
- Highly-aligned management team with superior long-term track
record
- Leader in asset and investment management for the real estate
& hospitality sectors
FINANCIAL AND OPERATING HIGHLIGHTS
- Net loss attributable to the Company for the second quarter of
2017 totaled $6.7 million, or
$3.85 per diluted share, compared
with a net loss of $1.1 million, or
$0.71 per diluted share, in the prior
year quarter. Adjusted net income for the second quarter was
$4.0 million, or $1.73 per diluted share, compared with
$3.9 million, or $1.69 per diluted share, in the prior year
quarter.
- Total revenue for the second quarter of 2017 was $19.6 million
- Adjusted EBITDA for the second quarter was $4.2 million, reflecting a growth rate of 32%
over the prior year quarter
- At the end of the second quarter of 2017, the Company had
approximately $6.3 billion of assets
under management
- During the quarter, the Company received a $5 million payment from Ashford Hospitality
Prime, Inc. (NYSE: AHP) ("Ashford
Prime" or "Prime") for the amendment to the advisory
agreement
- As of June 30, 2017, the Company
had corporate cash of $32.0
million
INVESTMENT IN J&S AUDIO VISUAL
On July 25, 2017, the Company announced that it had
agreed to acquire a controlling interest in a privately held
company that conducts the business of J&S Audio Visual in
the United States, Mexico, and the Dominican Republic ("J&S") for
approximately $17.1 million in cash
and $4.3 million of Ashford common
stock consideration (excluding transaction costs and working
capital adjustments), subject to certain closing conditions.
The purchase price represented a trailing 12-month Adjusted EBITDA
multiple of 5.7x which the Company believes is an attractive
multiple relative to prior comparable transactions. The
transaction is expected to close in the third quarter.
J&S provides an integrated suite of audio visual services,
including show & event services, hospitality services, creative
services, and design & integration, making J&S a leading
single-source solution for their clients' meeting and event needs.
J&S currently has multi-year contracts in place with
approximately 55 hotels and convention centers in addition to
regular business representing over 2,500 annual events and
productions, 500 venue locations, and 650 clients.
INVESTMENT IN PURE ROOMS
On April 13, 2017, the Company announced that it had
acquired a controlling interest in a privately held company that
conducts the business of Pure Rooms ("Pure Rooms"), a leading
provider of hypo-allergenic hotel rooms in the United States.
The purchase price represented a trailing 12-month Adjusted EBITDA
multiple of 2.9x based on unaudited operating financial data
provided by Pure Rooms.
Pure Rooms utilizes state-of-the-art purification technology to
create allergy-friendly guestrooms and currently has contracts in
place with approximately 160 hotels (approximately 2,400 rooms)
throughout the United States,
including 29 Ashford asset-managed hotels. Pure Rooms'
hypo-allergenic rooms are designed to provide a better night's
sleep for all guests, especially allergy sufferers. Pure
Rooms' patented 7-step purification process treats a room's
surfaces, including the air, and removes up to 99% of
pollutants.
DEVELOPMENTS IN OPENKEY
As previously announced, the
Company has made an investment in OpenKey. OpenKey is the
universal, industry-standard smartphone App for keyless entry in
hotel guestrooms. There have been several recent developments
regarding OpenKey's growth. First, deployments of their
technology are quickly ramping up and are expected to reach an
estimated 20,000 rooms deployed and an estimated 35,000 rooms under
contract over the next 12-18 months. Next, the platform is gaining
traction internationally. The office in Guadalajara, Mexico, has been instrumental for
growth in Mexico, Costa Rica and Colombia while the home office and independent
resellers serve the United States,
United Kingdom, Singapore, Indonesia, Australia and Canada. Finally,
sales demonstrations and signed contracts are at an all-time high
with the second quarter surpassing the record-setting first quarter
resulting in 55% revenue growth in the second quarter compared to
the first quarter.
FINANCIAL RESULTS
Net loss attributable to the Company
for the second quarter of 2017 totaled $6.7
million, or $3.85 per diluted
share, compared with a net loss of $1.1
million, or $0.71 per diluted
share, for the second quarter of 2016. Adjusted net income
for the second quarter of 2017 was $4.0
million, or $1.73 per diluted
share, compared with $3.9 million, or
$1.69 per diluted share, in the prior
year quarter.
Due to a legal restructuring of the Company's organizational
structure during the second quarter, the Company had to write off
its deferred tax asset in the quarter. This was a non-cash
item related to a one-time event so the Company has added back this
item in calculating its Adjusted net income metric. The
Company does not expect this restructuring to have any effect on
its actual cash taxes paid. Also, the receipt of the
$5 million payment from Ashford Prime will be reflected in the Company's
Advisory Fee revenue line item and will be recognized over the
remaining initial term of the advisory agreement.
For the second quarter ended June 30,
2017, base advisory fee revenue was $10.9 million, including $8.6 million from Ashford Hospitality Trust, Inc.
(NYSE:AHT) ("Ashford Trust" or "Trust") and $2.3 million from Ashford
Prime.
Adjusted EBITDA for the second quarter of 2017 was $4.2 million, compared with $3.2 million for the second quarter of 2016,
reflecting a growth rate of 32%.
CAPITAL STRUCTURE
At the end of the second quarter of
2017, the Company had approximately $6.3
billion of assets under management from its managed
companies and corporate cash of $32.0
million. At the end of the second quarter of 2017, the
Company had no corporate level debt, no preferred equity, 2.2
million fully diluted shares and a current fully diluted equity
market capitalization of approximately $109
million.
QUARTERLY HIGHLIGHTS FOR ADVISED PLATFORMS
ASHFORD TRUST HIGHLIGHTS
- Trust announced details for the redevelopment and acquisition
of the meeting space at its Renaissance Nashville hotel. In
connection with the redevelopment of the Nashville Convention Center ("NCC"), Trust has
entered into an agreement with the developers to acquire a
permanent fee interest in the reconfigured facility which will
contain all spaces currently used by the hotel in the existing NCC
under the current 99-year lease as well as the additional meeting
space that is under the current 30-year lease.
- Trust refinanced a mortgage loan on the Westin Princeton and
Renaissance Nashville hotels with an existing outstanding balance
totaling approximately $104 million
with a new loan totaling $181 million
consisting of an initial advance of $165
million with future advances totaling $16 million as reimbursement for capital
expenditures.
- Trust completed the refinancing of the mortgage loan on the
Hotel Indigo Atlanta Midtown with an outstanding balance of
approximately $15.6 million with a
new loan totaling $16.1 million.
- Trust completed the conversion of the Marriott DFW Airport in
Irving, Texas from brand-managed
to franchised, with Remington
Lodging taking over property management.
- Trust announced the sale of the 495-room Crowne Plaza Ravinia
in Atlanta, Georgia for
$88.7 million ($179,000 per key).
ASHFORD PRIME HIGHLIGHTS
- Prime announced that at its Annual Meeting of Stockholders, its
stockholders approved Prime's amended and restated advisory
agreement with the Company with over 95% of shares voted approving
the amendment.
- Prime completed the acquisition of the 80-room Hotel Yountville
in Yountville, California for
$96.5 million. Concurrent with the
completion of the acquisition, the Company financed the hotel with
a $51.0 million non-recourse mortgage
loan. This loan is interest only and provides for a floating
interest rate of LIBOR + 2.55% with a five-year term.
- Prime announced that it has entered into an agreement with
Marriott to convert its Courtyard Philadelphia Downtown hotel to an
Autograph Collection property.
- Prime reached an agreement with the City of San Diego for an extension of the
ground lease at the Hilton La Jolla Torrey Pines hotel. The lease,
which was scheduled to expire in 2043, was extended by 24 years and
will now expire in 2067.
"Ashford completed another quarter of strong operating
performance and we are very excited about the growth prospects for
our service businesses, especially our recently announced
investment in J&S," commented Monty J.
Bennett, Ashford's Chairman and Chief Executive Officer.
"Looking ahead, we are committed to maximizing value for our
shareholders by pursuing our strategy to opportunistically grow our
business by accretively expanding our existing REIT platforms,
adding additional investment platforms and investing in other
hospitality-related businesses through which we can accelerate
meaningful, profitable growth."
INVESTOR CONFERENCE CALL AND SIMULCAST
The Company
will conduct a conference call on Friday,
August 4, 2017, at 12:00 p.m.
ET. The number to call for this interactive
teleconference is (719) 325-4815. A replay of the conference
call will be available through Friday,
August 11, 2017, by dialing (719) 457-0820 and entering the
confirmation number, 5742225.
The Company will also provide an online simulcast and
rebroadcast of its second quarter 2017 earnings release conference
call. The live broadcast of the Company's quarterly
conference call will be available online at the Company's web site,
www.ashfordinc.com on Friday, August 4,
2017, beginning at 12:00 p.m.
ET. The online replay will follow shortly after the
call and continue for approximately one year.
Included in this press release are certain supplemental measures
of performance which are not measures of operating performance
under GAAP, to assist investors in evaluating the Company's
historical or future financial performance. These supplemental
measures include adjusted earnings before interest, tax,
depreciation and amortization ("Adjusted EBITDA") and Adjusted Net
Income. We believe that Adjusted EBITDA and Adjusted Net Income
provide investors and management with a meaningful indicator of
operating performance. Management also uses Adjusted EBITDA and
Adjusted Net Income, among other measures, to evaluate
profitability and our board of directors includes these measures in
reviews to determine quarterly distributions to stockholders. We
calculate Adjusted EBITDA by subtracting or adding to net income
(loss): interest expense, income taxes, depreciation, amortization,
net income (loss) to noncontrolling interests, transaction costs,
and other expenses. We calculate Adjusted Net Income by subtracting
or adding to net income (loss): net income (loss) to noncontrolling
interests, transaction costs, and other expenses. Our methodology
for calculating Adjusted EBITDA and Adjusted Net Income may differ
from the methodologies used by other comparable companies, when
calculating the same or similar supplemental financial measures and
may not be comparable with these companies. Neither Adjusted EBITDA
nor Adjusted Net Income represents cash generated from operating
activities as determined by GAAP and should not be considered as an
alternative to a) GAAP net income (loss) as an indication of our
financial performance or b) GAAP cash flows from operating
activities as a measure of our liquidity nor are such measures
indicative of funds available to satisfy our cash needs. The
Company urges investors to carefully review the U.S. GAAP financial
information as shown in our periodic reports on Form 10-Q and Form
10-K, as amended.
Ashford provides global asset management, investment management
and related services to the real estate and hospitality
sectors.
Follow Chairman and CEO Monty
Bennett on Twitter at www.twitter.com/MBennettAshford or
@MBennettAshford.
Ashford has created an Ashford App for the hospitality REIT
investor community. The Ashford App is available for free
download at Apple's App Store and
the Google Play Store by searching "Ashford."
Forward Looking Statements
Included in this press release are certain supplemental
measures of performance which are not measures of operating
performance under GAAP, to assist investors in evaluating the
Company's historical or future financial performance. These
supplemental measures include adjusted earnings before interest,
tax, depreciation and amortization ("Adjusted EBITDA") and Adjusted
Net Income. We believe that Adjusted EBITDA and Adjusted Net Income
provide investors and management with a meaningful indicator of
operating performance. Management also uses Adjusted EBITDA and
Adjusted Net Income, among other measures, to evaluate
profitability and our board of directors includes these measures in
reviews to determine quarterly distributions to stockholders. We
calculate Adjusted EBITDA by subtracting or adding to net income
(loss): interest expense, income taxes, depreciation, amortization,
net income (loss) to noncontrolling interests, transaction costs,
and other expenses. We calculate Adjusted Net Income by subtracting
or adding to net income (loss): net income (loss) to noncontrolling
interests, transaction costs, and other expenses. Our methodology
for calculating Adjusted EBITDA and Adjusted Net Income may differ
from the methodologies used by other comparable companies, when
calculating the same or similar supplemental financial measures and
may not be comparable with these companies. Neither Adjusted EBITDA
nor Adjusted Net Income represents cash generated from operating
activities as determined by GAAP and should not be considered as an
alternative to a) GAAP net income (loss) as an indication of our
financial performance or b) GAAP cash flows from operating
activities as a measure of our liquidity nor are such measures
indicative of funds available to satisfy our cash needs. The
Company urges investors to carefully review the U.S. GAAP financial
information included as part of our Registration Statement on Form
10, as amended.
Certain statements and assumptions in this press release
contain or are based upon "forward-looking" information and are
being made pursuant to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. These forward-looking
statements are subject to risks and uncertainties. When we use the
words "will likely result," "may," "anticipate," "estimate,"
"should," "expect," "believe," "intend," or similar expressions, we
intend to identify forward-looking statements. Such statements are
subject to numerous assumptions and uncertainties, many of which
are outside Ashford's control.
These forward-looking statements are subject to known and
unknown risks and uncertainties, which could cause actual results
to differ materially from those anticipated, including, without
limitation: general volatility of the capital markets and the
market price of our common stock; changes in our business or
investment strategy; availability, terms and deployment of capital;
availability of qualified personnel; changes in our industry and
the market in which we operate, interest rates or the general
economy; the degree and nature of our competition; risks that
Ashford will ultimately not pursue a transaction with Remington or
Remington will reject engaging in any transaction with Ashford; if
a transaction is negotiated between Ashford and Remington, risks
related to Ashford's ability to complete the acquisition on the
proposed terms; the possibility that competing offers will be made;
risks associated with business combination transactions, such as
the risk that the businesses will not be integrated successfully,
that such integration may be more difficult, time-consuming or
costly than expected or that the expected benefits of the
acquisition will not be realized; risks related to future
opportunities and plans for the combined company, including
uncertainty of the expected financial performance and results of
the combined company following completion of the proposed
acquisition; disruption from the proposed acquisition, making it
more difficult to conduct business as usual or maintain
relationships with customers, employees, managers or franchisors;
and the possibility that if the combined company does not achieve
the perceived benefits of the proposed acquisition as rapidly or to
the extent anticipated by financial analysts or investors, the
market price of Ashford's shares could decline. These and other
risk factors are more fully discussed in Ashford's filings with the
Securities and Exchange Commission.
The forward-looking statements included in this press release
are only made as of the date of this press release. Investors
should not place undue reliance on these forward-looking
statements. We are not obligated to publicly update or revise any
forward-looking statements, whether as a result of new information,
future events or circumstances, changes in expectations or
otherwise.
ASHFORD INC. AND
SUBSIDIARIES
|
CONSOLIDATED
BALANCE SHEETS
|
(unaudited, in
thousands, except share and per share amounts)
|
|
|
June 30,
2017
|
|
December 31,
2016
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
36,972
|
|
|
$
|
84,091
|
|
Restricted
cash
|
14,000
|
|
|
9,752
|
|
Investments in
securities
|
—
|
|
|
91
|
|
Prepaid expenses and
other
|
835
|
|
|
1,305
|
|
Receivables
|
245
|
|
|
16
|
|
Due from Ashford
Trust OP
|
10,864
|
|
|
12,179
|
|
Due from Ashford
Prime OP
|
3,252
|
|
|
3,817
|
|
Other
assets
|
66
|
|
|
—
|
|
Total current
assets
|
66,234
|
|
|
111,251
|
|
Investments in
unconsolidated entities
|
500
|
|
|
500
|
|
Furniture, fixtures
and equipment, net
|
11,752
|
|
|
12,044
|
|
Deferred tax
assets
|
—
|
|
|
6,002
|
|
Goodwill
|
813
|
|
|
—
|
|
Intangible assets,
net
|
166
|
|
|
—
|
|
Total
assets
|
$
|
79,465
|
|
|
$
|
129,797
|
|
LIABILITIES AND
EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts payable and
accrued expenses
|
$
|
7,834
|
|
|
$
|
11,314
|
|
Due to
affiliates
|
2,293
|
|
|
933
|
|
Due to Ashford Prime
OP from AQUA U.S. Fund
|
—
|
|
|
2,289
|
|
Deferred compensation
plan
|
161
|
|
|
144
|
|
Notes
payable
|
337
|
|
|
—
|
|
Other
liabilities
|
13,311
|
|
|
9,752
|
|
Total current
liabilities
|
23,936
|
|
|
24,432
|
|
Accrued
expenses
|
57
|
|
|
287
|
|
Deferred
income
|
10,462
|
|
|
4,515
|
|
Deferred compensation
plan
|
10,472
|
|
|
8,934
|
|
Notes
payable
|
76
|
|
|
—
|
|
Total
liabilities
|
45,003
|
|
|
38,168
|
|
|
|
|
|
Redeemable
noncontrolling interests
|
211
|
|
|
179
|
|
Redeemable
noncontrolling interests in subsidiary common stock
|
1,555
|
|
|
1,301
|
|
Equity:
|
|
|
|
Preferred stock,
$0.01 par value, 50,000,000 shares authorized:
|
|
|
|
Series A
cumulative preferred stock, no shares issued and
outstanding at June 30, 2017 and December 31,
2016
|
—
|
|
|
—
|
|
Common stock, $0.01
par value, 100,000,000 shares authorized, 2,021,754 and 2,015,589
shares issued and outstanding at June 30, 2017 and
December 31, 2016, respectively
|
20
|
|
|
20
|
|
Additional paid-in
capital
|
241,102
|
|
|
237,796
|
|
Accumulated
deficit
|
(209,029)
|
|
|
(200,439)
|
|
Total stockholders'
equity of the Company
|
32,093
|
|
|
37,377
|
|
Noncontrolling
interests in consolidated entities
|
603
|
|
|
52,772
|
|
Total
equity
|
32,696
|
|
|
90,149
|
|
Total liabilities and
equity
|
$
|
79,465
|
|
|
$
|
129,797
|
|
ASHFORD INC. AND
SUBSIDIARIES
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
(unaudited, in
thousands, except per share amounts)
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June
30,
|
|
June
30,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
REVENUE
|
|
|
|
|
|
|
|
Advisory
services:
|
|
|
|
|
|
|
|
Base advisory
fee
|
$
|
10,904
|
|
|
$
|
10,932
|
|
|
$
|
21,731
|
|
|
$
|
21,497
|
|
Incentive advisory
fee
|
770
|
|
|
413
|
|
|
1,541
|
|
|
732
|
|
Reimbursable
expenses
|
3,195
|
|
|
2,276
|
|
|
5,311
|
|
|
4,430
|
|
Non-cash
stock/unit-based compensation
|
3,289
|
|
|
4,447
|
|
|
2,006
|
|
|
4,734
|
|
Other advisory
revenue
|
14
|
|
|
—
|
|
|
14
|
|
|
—
|
|
Other
|
1,467
|
|
|
84
|
|
|
2,049
|
|
|
168
|
|
Total
revenue
|
19,639
|
|
|
18,152
|
|
|
32,652
|
|
|
31,561
|
|
EXPENSES
|
|
|
|
|
|
|
|
Salaries and
benefits
|
6,126
|
|
|
8,717
|
|
|
16,169
|
|
|
14,691
|
|
Non-cash
stock/unit-based compensation
|
5,488
|
|
|
7,517
|
|
|
6,477
|
|
|
10,751
|
|
Depreciation and
amortization
|
587
|
|
|
272
|
|
|
1,055
|
|
|
544
|
|
General and
administrative
|
4,697
|
|
|
3,838
|
|
|
8,346
|
|
|
8,279
|
|
Impairment
|
1,072
|
|
|
—
|
|
|
1,072
|
|
|
—
|
|
Other
|
251
|
|
|
—
|
|
|
251
|
|
|
—
|
|
Total operating
expenses
|
18,221
|
|
|
20,344
|
|
|
33,370
|
|
|
34,265
|
|
OPERATING INCOME
(LOSS)
|
1,418
|
|
|
(2,192)
|
|
|
(718)
|
|
|
(2,704)
|
|
Realized gain (loss)
on investment in unconsolidated entity
|
—
|
|
|
—
|
|
|
—
|
|
|
(3,601)
|
|
Unrealized gain
(loss) on investment in unconsolidated entity
|
—
|
|
|
—
|
|
|
—
|
|
|
2,141
|
|
Interest expense and
loan amortization costs
|
(15)
|
|
|
—
|
|
|
(15)
|
|
|
—
|
|
Interest
income
|
38
|
|
|
10
|
|
|
71
|
|
|
23
|
|
Dividend
income
|
—
|
|
|
33
|
|
|
93
|
|
|
46
|
|
Unrealized gain
(loss) on investments
|
78
|
|
|
(234)
|
|
|
203
|
|
|
895
|
|
Realized gain (loss)
on investments
|
(94)
|
|
|
470
|
|
|
(294)
|
|
|
(6,343)
|
|
Other income
(expense)
|
(13)
|
|
|
(21)
|
|
|
(21)
|
|
|
(149)
|
|
INCOME (LOSS)
BEFORE INCOME TAXES
|
1,412
|
|
|
(1,934)
|
|
|
(681)
|
|
|
(9,692)
|
|
Income tax (expense)
benefit
|
(8,643)
|
|
|
655
|
|
|
(9,273)
|
|
|
15
|
|
NET INCOME
(LOSS)
|
(7,231)
|
|
|
(1,279)
|
|
|
(9,954)
|
|
|
(9,677)
|
|
(Income) loss from
consolidated entities attributable to noncontrolling
interests
|
190
|
|
|
(182)
|
|
|
165
|
|
|
6,366
|
|
Net (income) loss
attributable to redeemable noncontrolling interests
|
(4)
|
|
|
4
|
|
|
—
|
|
|
7
|
|
Net (income) loss
attributable to redeemable noncontrolling interests in subsidiary
common stock
|
336
|
|
|
351
|
|
|
695
|
|
|
466
|
|
NET INCOME (LOSS)
ATTRIBUTABLE TO THE COMPANY
|
$
|
(6,709)
|
|
|
$
|
(1,106)
|
|
|
$
|
(9,094)
|
|
|
$
|
(2,838)
|
|
|
|
|
|
|
|
|
|
INCOME (LOSS) PER
SHARE - BASIC AND DILUTED
|
|
|
|
|
|
|
|
Basic:
|
|
|
|
|
|
|
|
Net
income (loss) attributable to common stockholders
|
$
|
(3.32)
|
|
|
$
|
(0.55)
|
|
|
$
|
(4.51)
|
|
|
$
|
(1.41)
|
|
Weighted
average common shares outstanding - basic
|
2,019
|
|
|
2,011
|
|
|
2,017
|
|
|
2,010
|
|
Diluted:
|
|
|
|
|
|
|
|
Net
income (loss) attributable to common stockholders
|
$
|
(3.85)
|
|
|
$
|
(0.71)
|
|
|
$
|
(4.77)
|
|
|
$
|
(1.85)
|
|
Weighted
average common shares outstanding - diluted
|
2,265
|
|
|
2,048
|
|
|
2,051
|
|
|
2,152
|
|
ASHFORD INC. AND
SUBSIDIARIES
|
RECONCILIATION OF
NET INCOME (LOSS) TO EBITDA AND ADJUSTED EBITDA
|
(unaudited, in
thousands)
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June
30,
|
|
June
30,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Net income
(loss)
|
$
|
(7,231)
|
|
|
$
|
(1,279)
|
|
|
$
|
(9,954)
|
|
|
$
|
(9,677)
|
|
(Income) loss from
consolidated entities attributable to noncontrolling
interests
|
190
|
|
|
(182)
|
|
|
165
|
|
|
6,366
|
|
Net (income) loss
attributable to redeemable noncontrolling interests
|
(4)
|
|
|
4
|
|
|
—
|
|
|
7
|
|
Net (income) loss
attributable to redeemable noncontrolling interests in subsidiary
common stock
|
336
|
|
|
351
|
|
|
695
|
|
|
466
|
|
Net income (loss)
attributable to the company
|
(6,709)
|
|
|
(1,106)
|
|
|
(9,094)
|
|
|
(2,838)
|
|
Interest expense and
loan amortization costs
|
9
|
|
|
—
|
|
|
9
|
|
|
—
|
|
Depreciation and
amortization
|
578
|
|
|
269
|
|
|
1,043
|
|
|
536
|
|
Income tax expense
(benefit)
|
8,643
|
|
|
(655)
|
|
|
9,273
|
|
|
(15)
|
|
Realized and
unrealized (gain) loss on investment in unconsolidated entity (net
of noncontrolling interest)
|
—
|
|
|
—
|
|
|
—
|
|
|
1,328
|
|
Net income (loss)
attributable to redeemable noncontrolling interests
|
4
|
|
|
(4)
|
|
|
—
|
|
|
(7)
|
|
EBITDA
|
2,525
|
|
|
(1,496)
|
|
|
1,231
|
|
|
(996)
|
|
Equity-based
compensation
|
2,187
|
|
|
3,070
|
|
|
4,455
|
|
|
6,017
|
|
Market change in
deferred compensation plan
|
(1,673)
|
|
|
928
|
|
|
1,667
|
|
|
(684)
|
|
Transaction
costs
|
1,169
|
|
|
487
|
|
|
1,830
|
|
|
870
|
|
Software
implementation costs
|
35
|
|
|
110
|
|
|
94
|
|
|
904
|
|
Reimbursed software
costs
|
(219)
|
|
|
—
|
|
|
(274)
|
|
|
—
|
|
Dead deal
costs
|
—
|
|
|
52
|
|
|
—
|
|
|
63
|
|
Realized and
unrealized (gain) loss on derivatives
|
16
|
|
|
56
|
|
|
41
|
|
|
47
|
|
Legal and settlement
costs
|
155
|
|
|
—
|
|
|
155
|
|
|
—
|
|
Severance
costs
|
33
|
|
|
—
|
|
|
82
|
|
|
—
|
|
Adjusted
EBITDA
|
$
|
4,228
|
|
|
$
|
3,207
|
|
|
$
|
9,281
|
|
|
$
|
6,221
|
|
ASHFORD INC. AND
SUBSIDIARIES
|
RECONCILIATION OF
NET INCOME (LOSS) TO ADJUSTED NET INCOME (LOSS)
|
(unaudited, in
thousands, except per share amounts)
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June
30,
|
|
June
30,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Net income
(loss)
|
$
|
(7,231)
|
|
|
$
|
(1,279)
|
|
|
$
|
(9,954)
|
|
|
$
|
(9,677)
|
|
(Income) loss from
consolidated entities attributable to noncontrolling
interests
|
190
|
|
|
(182)
|
|
|
165
|
|
|
6,366
|
|
Net (income) loss
attributable to redeemable noncontrolling interests
|
(4)
|
|
|
4
|
|
|
—
|
|
|
7
|
|
Net (income) loss
attributable to redeemable noncontrolling interests in subsidiary
common stock
|
336
|
|
|
351
|
|
|
695
|
|
|
466
|
|
Net income (loss)
attributable to the company
|
(6,709)
|
|
|
(1,106)
|
|
|
(9,094)
|
|
|
(2,838)
|
|
Depreciation and
amortization
|
578
|
|
|
269
|
|
|
1,043
|
|
|
536
|
|
Net income (loss)
attributable to redeemable noncontrolling interests
|
4
|
|
|
(4)
|
|
|
—
|
|
|
(7)
|
|
Equity-based
compensation
|
2,187
|
|
|
3,070
|
|
|
4,455
|
|
|
6,017
|
|
Realized and
unrealized (gain) loss on investment in unconsolidated entity (net
of noncontrolling interest)
|
—
|
|
|
—
|
|
|
—
|
|
|
1,328
|
|
Market change in
deferred compensation plan
|
(1,673)
|
|
|
928
|
|
|
1,667
|
|
|
(684)
|
|
Transaction
costs
|
1,169
|
|
|
487
|
|
|
1,830
|
|
|
870
|
|
Software
implementation costs
|
35
|
|
|
110
|
|
|
94
|
|
|
904
|
|
Reimbursed software
costs
|
(219)
|
|
|
—
|
|
|
(274)
|
|
|
—
|
|
Dead deal
costs
|
—
|
|
|
52
|
|
|
—
|
|
|
63
|
|
Realized and
unrealized (gain) loss on derivatives
|
16
|
|
|
56
|
|
|
41
|
|
|
47
|
|
Legal and settlement
costs
|
155
|
|
|
—
|
|
|
155
|
|
|
—
|
|
Restructuring income
tax expense
|
8,433
|
|
|
—
|
|
|
8,433
|
|
|
—
|
|
Severance
costs
|
33
|
|
|
—
|
|
|
82
|
|
|
—
|
|
Adjusted net
income (loss)
|
$
|
4,009
|
|
|
$
|
3,862
|
|
|
$
|
8,432
|
|
|
$
|
6,236
|
|
Adjusted net income
(loss) per diluted share available to common
stockholders
|
$
|
1.73
|
|
|
$
|
1.69
|
|
|
$
|
3.64
|
|
|
$
|
2.74
|
|
Weighted average
diluted shares
|
2,318
|
|
|
2,285
|
|
|
2,314
|
|
|
2,275
|
|
View original
content:http://www.prnewswire.com/news-releases/ashford-reports-second-quarter-2017-results-300499421.html
SOURCE Ashford Inc.