DALLAS, July 26, 2021 /PRNewswire/ -- Ashford Hospitality
Trust, Inc. (NYSE: AHT) ("Ashford Trust" or the "Company")
announced today its preliminary expectations for net loss
attributable to common stockholders, Adjusted EBITDAre, and
Adjusted FFO for the second quarter ended June 30, 2021.
The Company reported today a preliminary estimated range of net
loss attributable to common stockholders of approximately
$(70.5) million to $(68.5) million or $(4.42) to $(4.29)
per share, a preliminary estimated range of Adjusted EBITDAre of
$30.3 million to $32.3 million, and a preliminary estimated range
of Adjusted FFO available to common stockholders and OP unitholders
of $(0.3) million to $1.7 million for the second quarter ended
June 30, 2021. Final results for the
second quarter ended June 30, 2021
will be released on July 28, 2021, as
previously announced.
"We are excited to report these preliminary results for the
second quarter, which were driven by strong leisure and transient
demand across our portfolio," commented Rob
Hays, Ashford Trust's President and Chief Executive Officer.
"These results exceeded our own internal estimates and resulted in
our achieving positive Hotel EBITDA for a second straight
quarter. We remain optimistic about the outlook for our
company and believe our diversified, high-quality portfolio is well
positioned for the recovery in our industry."
We use certain non-GAAP measures, in addition to the required
GAAP presentations, as we believe these measures improve the
understanding of our operational results and make comparisons of
operating results among peer real estate investment trusts more
meaningful. Non-GAAP financial measures, which should not be relied
upon as a substitute for GAAP measures, used in this press release
are FFO, AFFO, EBITDA, EBITDAre and Adjusted EBITDAre. Please refer
to our most recently filed Annual Report on Form 10-K for a more
detailed description of how these non-GAAP measures are calculated.
The reconciliations of non-GAAP measures to the closest GAAP
measures are provided below and provide further details of our
results for the period being reported.
The following tables are reconciliations of the Company's
preliminary estimated GAAP net income (loss) to the Company's
preliminary estimated EBITDA, EBITDAre, Adjusted EBITDAre, FFO and
Adjusted FFO:
ASHFORD
HOSPITALITY TRUST, INC. AND SUBSIDIARIES
|
RECONCILIATION OF
NET INCOME (LOSS) TO EBITDA, EBITDAre AND ADJUSTED
EBITDAre
|
(in
millions)
|
(unaudited)
|
|
|
Three Months
Ended
June 30, 2021
|
|
Six Months
Ended
June 30, 2021
|
|
Low
End
|
|
High
End
|
|
Low
End
|
|
High
End
|
Net income (loss)
(1)
|
$
|
(66.3)
|
|
|
$
|
(64.3)
|
|
|
$
|
(171.7)
|
|
|
$
|
(169.7)
|
|
Interest expense and
amortization of discounts and loan costs, net
|
35.7
|
|
|
35.7
|
|
|
69.0
|
|
|
69.0
|
|
Depreciation and
amortization
|
55.6
|
|
|
55.6
|
|
|
113.2
|
|
|
113.2
|
|
Income tax expense
(benefit)
|
0.6
|
|
|
0.6
|
|
|
0.3
|
|
|
0.3
|
|
Equity in (earnings)
loss of unconsolidated entities
|
0.1
|
|
|
0.1
|
|
|
0.3
|
|
|
0.3
|
|
Company's portion of
EBITDA of OpenKey
|
(0.1)
|
|
|
(0.1)
|
|
|
(0.3)
|
|
|
(0.3)
|
|
EBITDA
|
25.6
|
|
|
27.6
|
|
|
10.8
|
|
|
12.8
|
|
(Gain) loss on
disposition of assets and hotel properties
|
(0.4)
|
|
|
(0.4)
|
|
|
(0.3)
|
|
|
(0.3)
|
|
EBITDAre
|
25.2
|
|
|
27.2
|
|
|
10.5
|
|
|
12.5
|
|
Amortization of
unfavorable contract liabilities
|
0.1
|
|
|
0.1
|
|
|
0.1
|
|
|
0.1
|
|
Write-off of premiums,
loan costs and exit fees
|
0.8
|
|
|
0.8
|
|
|
4.2
|
|
|
4.2
|
|
(Gain) loss on
extinguishment of debt
|
(10.6)
|
|
|
(10.6)
|
|
|
(10.6)
|
|
|
(10.6)
|
|
Other (income)
expense, net
|
(0.2)
|
|
|
(0.2)
|
|
|
(0.5)
|
|
|
(0.5)
|
|
Transaction and
conversion costs
|
0.4
|
|
|
0.4
|
|
|
1.9
|
|
|
1.9
|
|
Legal, advisory and
settlement costs (1)
|
1.8
|
|
|
1.8
|
|
|
4.5
|
|
|
4.5
|
|
Unrealized (gain) loss
on derivatives
|
3.2
|
|
|
3.2
|
|
|
2.3
|
|
|
2.3
|
|
Dead deal
costs
|
—
|
|
|
—
|
|
|
0.7
|
|
|
0.7
|
|
Uninsured remediation
costs
|
—
|
|
|
—
|
|
|
0.4
|
|
|
0.4
|
|
Non-cash
stock/unit-based compensation
|
3.1
|
|
|
3.1
|
|
|
5.0
|
|
|
5.0
|
|
Advisory services
incentive fee
|
6.5
|
|
|
6.5
|
|
|
6.5
|
|
|
6.5
|
|
Company's portion of
adjustments to EBITDAre of OpenKey
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Adjusted
EBITDAre
|
$
|
30.3
|
|
|
$
|
32.3
|
|
|
$
|
25.0
|
|
|
$
|
27.0
|
|
________
|
(1) Includes an accrual of $1.835
million related to the previously disclosed lawsuit captioned
Pedro Membrives and Michele Spero, individually and on behalf of
others similarly situated v. HHC TRS FP Portfolio LLC, Remington
Lodging & Hospitality, LLC, Remington Holdings LLC, Remington
Long Island Employers, LLC, et al., Index No. 607828/2015 (Sup. Ct.
Nassau Cty.).
|
ASHFORD
HOSPITALITY TRUST, INC. AND SUBSIDIARIES
|
RECONCILIATION OF
NET INCOME (LOSS) TO FFO AND ADJUSTED FFO
|
(in
millions)
|
(unaudited)
|
|
|
Three Months
Ended
June 30, 2021
|
|
Six Months
Ended
June 30, 2021
|
|
Low
End
|
|
High
End
|
|
Low
End
|
|
High
End
|
Net income (loss)
(1)
|
$
|
(66.3)
|
|
|
$
|
(64.3)
|
|
|
$
|
(171.7)
|
|
|
$
|
(169.7)
|
|
(Income) loss
attributable to noncontrolling interest in consolidated
entities
|
—
|
|
|
—
|
|
|
0.1
|
|
|
0.1
|
|
Net (income) loss
attributable to redeemable noncontrolling interests in
operating partnership
|
1.0
|
|
|
1.0
|
|
|
3.2
|
|
|
3.2
|
|
Preferred
dividends
|
2.7
|
|
|
2.7
|
|
|
3.5
|
|
|
3.5
|
|
Gain (loss) on
extinguishment of preferred stock
|
(7.9)
|
|
|
(7.9)
|
|
|
2.7
|
|
|
2.7
|
|
Net income (loss)
attributable to common stockholders
|
(70.5)
|
|
|
(68.5)
|
|
|
(162.2)
|
|
|
(160.2)
|
|
Depreciation and
amortization on real estate
|
55.6
|
|
|
55.6
|
|
|
113.1
|
|
|
113.1
|
|
(Gain) loss on
disposition of assets and hotel properties
|
(0.4)
|
|
|
(0.4)
|
|
|
(0.3)
|
|
|
(0.3)
|
|
Net income (loss)
attributable to redeemable noncontrolling interests in
operating partnership
|
(1.0)
|
|
|
(1.0)
|
|
|
(3.2)
|
|
|
(3.2)
|
|
Equity in (earnings)
loss of unconsolidated entities
|
0.1
|
|
|
0.1
|
|
|
0.3
|
|
|
0.3
|
|
Company's portion of
FFO of OpenKey
|
(0.1)
|
|
|
(0.1)
|
|
|
(0.3)
|
|
|
(0.3)
|
|
FFO available to
common stockholders and OP unitholders
|
(16.3)
|
|
|
(14.3)
|
|
|
(52.6)
|
|
|
(50.6)
|
|
(Gain) loss on
extinguishment of preferred stock
|
7.9
|
|
|
7.9
|
|
|
(2.7)
|
|
|
(2.7)
|
|
Write-off of premiums,
loan costs and exit fees
|
0.8
|
|
|
0.8
|
|
|
4.2
|
|
|
4.2
|
|
(Gain) loss on
extinguishment of debt
|
(10.6)
|
|
|
(10.6)
|
|
|
(10.6)
|
|
|
(10.6)
|
|
Other (income)
expense, net
|
(0.2)
|
|
|
(0.2)
|
|
|
(0.5)
|
|
|
(0.5)
|
|
Transaction and
conversion costs
|
0.4
|
|
|
0.4
|
|
|
2.3
|
|
|
2.3
|
|
Legal, advisory and
settlement costs (1)
|
1.8
|
|
|
1.8
|
|
|
4.5
|
|
|
4.5
|
|
Unrealized (gain) loss
on derivatives
|
3.2
|
|
|
3.2
|
|
|
2.3
|
|
|
2.3
|
|
Dead deal
costs
|
—
|
|
|
—
|
|
|
0.7
|
|
|
0.7
|
|
Uninsured remediation
costs
|
—
|
|
|
—
|
|
|
0.4
|
|
|
0.4
|
|
Non-cash
stock/unit-based compensation
|
3.1
|
|
|
3.1
|
|
|
5.0
|
|
|
5.0
|
|
Amortization of term
loan exit fee
|
0.2
|
|
|
0.2
|
|
|
2.7
|
|
|
2.7
|
|
Amortization of loan
costs
|
2.9
|
|
|
2.9
|
|
|
7.8
|
|
|
7.8
|
|
Advisory services
incentive fee
|
6.5
|
|
|
6.5
|
|
|
6.5
|
|
|
6.5
|
|
Company's portion of
adjustments to FFO of OpenKey
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Adjusted FFO
available to common stockholders and OP unitholders
|
$
|
(0.3)
|
|
|
$
|
1.7
|
|
|
$
|
(30.0)
|
|
|
$
|
(28.0)
|
|
Weighted average
diluted shares
|
18.1
|
|
|
18.1
|
|
|
14.1
|
|
|
14.1
|
|
________
|
(1) Includes an accrual of $1.835
million related to the previously disclosed lawsuit captioned
Pedro Membrives and Michele Spero, individually and on behalf of
others similarly situated v. HHC TRS FP Portfolio LLC, Remington
Lodging & Hospitality, LLC, Remington Holdings LLC, Remington
Long Island Employers, LLC, et al., Index No. 607828/2015 (Sup. Ct.
Nassau Cty.).
|
Ashford Hospitality Trust is a real estate investment trust
(REIT) focused on investing predominantly in upper upscale,
full-service hotels.
Follow CEO Rob Hays on Twitter at
https://twitter.com/aht_rob or @aht_rob.
The preliminary estimated results for the second quarter ended
June 30, 2021 included in this
release, which are the responsibility of management, were prepared
by the Company's management in connection with the preparation of
the Company's financial statements and are based upon preliminary
hotel operating results, preliminary corporate level expenses, and
a number of subjective judgements and assumptions. Additional items
that may require adjustments to the Company's preliminary estimated
financial information may be identified and could result in
material changes to the Company's preliminary estimated results.
The Company has provided ranges, rather than specific amounts, for
the preliminary estimated results described above, primarily
because the Company's closing procedures for the second quarter
ended June 30, 2021 are not yet
complete and, as a result, the Company's final results upon
completion of the closing procedures may vary from the preliminary
estimates set forth above. The Company's independent registered
public accounting firm, BDO USA,
LLP, has not audited, reviewed, compiled or performed any
procedures with respect to the preliminary estimated financial
information, nor have they expressed any opinion or any other form
of assurance on such information or its achievability, and assume
no responsibility for, and disclaim any association with, such
preliminary estimated financial information. Further, these
preliminary estimated results are not a comprehensive statement or
estimate of the Company's financial condition or operating results
for the second quarter ended June 30,
2021. These preliminary estimated results should not be
viewed as a substitute for complete quarterly financial statements
prepared in accordance with generally accepted accounting
principles ("GAAP") or as a measure of the Company's performance.
In addition, the preliminary estimated financial information is not
necessarily indicative of the results to be achieved for any future
period. Accordingly, investors are cautioned not to place undue
reliance on this preliminary estimated financial information. See
the information below under the heading "Forward-Looking
Statements" and "Risk Factors" and "Management's Discussion of
Financial Condition and Results of Operations" in the Company's
Annual Report on Form 10-K for the year ended December 31, 2020.
Forward-Looking Statements
Certain statements and assumptions in this press release
contain or are based upon "forward-looking" information and are
being made pursuant to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. Forward-looking
statements in this press release include, among others, statements
about the Company's strategy and future plans. These
forward-looking statements are subject to risks and uncertainties.
When we use the words "will likely result," "may," "anticipate,"
"estimate," "should," "expect," "believe," "intend," or similar
expressions, we intend to identify forward-looking statements. Such
statements are subject to numerous assumptions and uncertainties,
many of which are outside Ashford Trust'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: the impact of COVID-19, and the rate of adoption and
efficacy of vaccines to prevent COVID-19, on our business and
investment strategy; the timing and outcome of the Securities and
Exchange Commission's investigation; our ability to regain S-3
eligibility; our ability to repay, refinance, or restructure our
debt and the debt of certain of our subsidiaries; anticipated or
expected purchases or sales of assets; our projected operating
results; completion of any pending transactions; our understanding
of our competition; market trends; projected capital expenditures;
the impact of technology on our operations and business; general
volatility of the capital markets and the market price of our
common stock and preferred stock; availability, terms and
deployment of capital; availability of qualified personnel; changes
in our industry and the markets in which we operate, interest rates
or the general economy; and the degree and nature of our
competition. These and other risk factors are more fully discussed
in Ashford Trust's filings with the Securities and Exchange
Commission.
The forward-looking statements included in this press release
are only made as of the date of this press release. Such
forward-looking statements are based on our beliefs, assumptions,
and expectations of our future performance taking into account all
information currently known to us. These beliefs, assumptions, and
expectations can change as a result of many potential events or
factors, not all of which are known to us. If a change occurs, our
business, financial condition, liquidity, results of operations,
plans, and other objectives may vary materially from those
expressed in our forward-looking statements. You should carefully
consider these risks when you make an investment decision
concerning our securities. Investors should not place undue
reliance on these forward-looking statements. The Company can give
no assurance that these forward-looking statements will be attained
or that any deviation will not occur. We are not obligated to
publicly update or revise any forward-looking statements, whether
as a result of new information, future events or circumstances,
changes in expectations, or otherwise, except to the extent
required by law.
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SOURCE Ashford Hospitality Trust, Inc.