Braemar Hotels & Resorts Inc. (NYSE: BHR) announced yesterday its preliminary expectations for net loss attributable to common stockholders, Adjusted EBITDAre, and Adjusted FFO for the fourth quarter and year ended December 31, 2021.
The Company reported a preliminary estimated range of net loss attributable to common stockholders of approximately $(5.2) million to $(3.8) million or $(0.08) to $(0.06) per share, a preliminary estimated range of Adjusted EBITDAre of $28.7 million to $30.1 million, and a preliminary estimated range of Adjusted FFO available to common stockholders, OP unitholders, Series B Cumulative Convertible preferred stockholders and convertible note holders on an "as converted" basis of $19.4 million to $20.8 million for the fourth quarter ended December 31, 2021.
Additionally, for the year ended December 31, 2021, the Company reported a preliminary estimated range of net loss attributable to common stockholders of approximately $(41.0) million to $(39.6) million or $(0.77) to $(0.75) per share, a preliminary estimated range of Adjusted EBITDAre of $86.9 million to $88.3 million, and a preliminary estimated range of Adjusted FFO available to common stockholders, OP unitholders, Series B Cumulative Convertible preferred stockholders and convertible note holders on an "as converted" basis of $56.3 million to $57.7 million. Final results for the fourth quarter and full year ended December 31, 2021 will be released on February 24, 2022, as previously announced.
"We are pleased with these preliminary fourth quarter results, which continue to be driven by strong leisure demand at our properties, particularly at our luxury resorts" said Richard J. Stockton, Braemar's President and Chief Executive Officer. "These results were again propelled by impressive profit margins for the quarter due to high average daily rates and strong flow-through."
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:
| BRAEMAR HOTELS & RESORTS INC. AND SUBSIDIARIES RECONCILIATION OF NET INCOME (LOSS) TO EBITDA, EBITDAre AND ADJUSTED EBITDAre (in millions) (unaudited) | |||||||
| Three Months Ended December 31, 2021 | Year Ended December 31, 2021 | ||||||
| Low End | High End | Low End | High End | ||||
| Net income (loss) | $ (3.2) | $ (1.8) | $ (33.8) | $ (32.4) | |||
| Interest expense and amortization of loan costs | 8.6 | 8.6 | 30.9 | 30.9 | |||
| Depreciation and amortization | 18.9 | 18.9 | 73.8 | 73.8 | |||
| Income tax expense (benefit) | 0.6 | 0.6 | 1.3 | 1.3 | |||
| Equity in (earnings) loss of unconsolidated entity | 0.1 | 0.1 | 0.3 | 0.3 | |||
| Company's portion of EBITDA of OpenKey | (0.1) | (0.1) | (0.3) | (0.3) | |||
| EBITDA | 24.9 | 26.3 | 72.2 | 73.6 | |||
| (Gain) loss on insurance settlement and disposition of assets | — | — | (0.7) | (0.7) | |||
| EBITDAre | 24.9 | 26.3 | 71.5 | 72.9 | |||
| Amortization of favorable (unfavorable) contract assets (liabilities) | 0.1 | 0.1 | 0.5 | 0.5 | |||
| Transaction and conversion costs | 0.7 | 0.7 | 2.9 | 2.9 | |||
| Write-off of loan costs and exit fees | — | — | 2.0 | 2.0 | |||
| Unrealized (gain) loss on derivatives | — | — | — | — | |||
| Non-cash stock/unit-based compensation | 2.9 | 2.9 | 10.2 | 10.2 | |||
| Legal, advisory and settlement costs | 0.1 | 0.1 | (0.2) | (0.2) | |||
| Company's portion of adjustments to EBITDAre of OpenKey | — | — | — | — | |||
| Adjusted EBITDAre | $ 28.7 | $ 30.1 | $ 86.9 | $ 88.3 | |||
| BRAEMAR HOTELS & RESORTS INC. AND SUBSIDIARIES RECONCILIATION OF NET INCOME (LOSS) TO FFO AND ADJUSTED FFO (in millions) (unaudited) | |||||||
| Three Months Ended December 31, 2021 | Year Ended December 31, 2021 | ||||||
| Low End | High End | Low End | High End | ||||
| Net income (loss) | $ (3.2) | $ (1.8) | $ (33.8) | $ (32.4) | |||
| (Income) loss attributable to noncontrolling interest in consolidated entities | 0.1 | 0.1 | 2.6 | 2.6 | |||
| Net (income) loss attributable to redeemable noncontrolling interests in operating partnership | 0.4 | 0.4 | 3.5 | 3.5 | |||
| Preferred dividends | (2.5) | (2.5) | (8.7) | (8.7) | |||
| Gain (loss) on extinguishment of preferred stock | — | — | (4.6) | (4.6) | |||
| Net income (loss) attributable to common stockholders | (5.2) | (3.8) | (41.0) | (39.6) | |||
| Depreciation and amortization on real estate | 18.2 | 18.2 | 71.1 | 71.1 | |||
| Net income (loss) attributable to redeemable noncontrolling interests in operating partnership | (0.4) | (0.4) | (3.6) | (3.6) | |||
| Equity in (earnings) loss of unconsolidated entity | 0.1 | 0.1 | 0.3 | 0.3 | |||
| (Gain) loss on insurance settlement and disposition of assets | — | — | (0.7) | (0.7) | |||
| Company's portion of FFO of OpenKey | (0.1) | (0.1) | (0.3) | (0.3) | |||
| FFO available to common stockholders and OP unitholders | 12.6 | 14.0 | 25.8 | 27.2 | |||
| Series B Cumulative Convertible Preferred Stock dividends | 1.1 | 1.1 | 4.7 | 4.7 | |||
| (Gain) loss on extinguishment of preferred stock | — | — | 4.6 | 4.6 | |||
| Transaction and conversion costs | 0.7 | 0.7 | 2.9 | 2.9 | |||
| Interest expense on convertible notes | 1.4 | 1.4 | 3.4 | 3.4 | |||
| Interest expense accretion on refundable membership club deposits | 0.2 | 0.2 | 0.8 | 0.8 | |||
| Write-off of loan costs and exit fees | — | — | 2.0 | 2.0 | |||
| Amortization of loan costs | 0.4 | 0.4 | 2.1 | 2.1 | |||
| Unrealized (gain) loss on derivatives | — | — | — | — | |||
| Non-cash stock/unit-based compensation | 2.9 | 2.9 | 10.2 | 10.2 | |||
| Legal, advisory and settlement costs | 0.1 | 0.1 | (0.2) | (0.2) | |||
| Company's portion of adjustments to FFO of OpenKey | — | — | — | — | |||
| Adjusted FFO available to common stockholders, OP unitholders, Series B Cumulative Convertible preferred stockholders and convertible note holders on an "as converted" basis | $ 19.4 | $ 20.8 | $ 56.3 | $ 57.7 | |||
| Weighted average diluted shares | 87.9 | 87.9 | 71.2 | 71.2 | |||
Braemar Hotels & Resorts is a real estate investment trust (REIT) focused on investing in luxury hotels and resorts.