Ashford Inc. (AINC) 10-Q Quarterly Report Tue May 11 2021

DALLAS, May 5, 2021 - Ashford Inc. (NYSE American: AINC) (“Ashford” or the “Company”) today reported the following results and performance measures for the first quarter ended March 31, 2021. Unless otherwise stated, all reported results compare the first quarter ended March 31, 2021, with the first quarter ended March 31, 2020 (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 business model

•Diversified platform of multiple fee generators

•Four paths to growth:

◦Recovery of the hospitality industry;

◦Increase assets under management (AUM);

◦Growth of third-party business; and

◦Acquisition or incubation of additional businesses

•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 common stockholders for the first quarter of 2021 totaled $17.1 million, or $6.36 per diluted share.

•Total revenue for the first quarter of 2021 was $63.9 million.

•Adjusted EBITDA for the first quarter was $5.5 million.

•At the end of the first quarter of 2021, the Company had approximately $7.3 billion of gross assets under management.

•As of March 31, 2021, the Company had corporate cash of approximately $31.2 million.

•The Company plans to publish an investor presentation in the coming weeks that outlines the growth prospects for its businesses over the coming years.

OPENKEY UPDATE

Ashford currently owns a 75% interest in OpenKey. OpenKey is the universal, industry-standard smartphone App for keyless entry in hotel guestrooms. OpenKey continues to expand its platform with 236 hotels under contract at the end of the first quarter. As the hospitality industry strives to implement measures to provide a clean and safe environment for guests, the Company expects that the digital

The following information was filed by Ashford Inc. (AINC) on Wednesday, May 5, 2021 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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Inside Ashford Inc.'s 10-Q Quarterly Report:

Financial - Expense Highlight
Depreciation and amortization expense decreased by $1.8 million, or 18.4%, to $8.1 million for the 2021 quarter compared to the 2020 quarter, primarily due to the write-off of $6.4 million of FF&E in the third quarter of 2020 related to FF&E formerly leased to Ashford Trust under the Ashford Trust ERFP Agreement upon Ashford Trust's sale of the Embassy Suites New York Manhattan Times Square and the sale of FF&E in the fourth quarter of 2020 to Braemar for FF&E formerly leased to Braemar under the Braemar ERFP Agreement at the expiration of the lease.

Financial - Cash Flow Highlight
The decrease in cash flows from operating activities in the three months ended March 31, 2021 was primarily due to a decrease in earnings due to COVID-19 and decreases in cash flows due to the timing of receipt of our receivables from Braemar and payments of accounts payable offset by the timing of receipt of our receivables from Ashford Trust and third parties in the three months ended March 31, 2021.
Financial - Dividend Highlight
In the event the Company fails to pay the dividends on the Series D Convertible Preferred Stock for two consecutive quarterly periods (a "Preferred Stock Breach"), then until such arrearage is paid in cash in full: (A) the dividend rate on the Series D Convertible Preferred Stock will increase to 10.00% per annum until no Preferred Stock Breach exists; (B) no dividends on the Company's common stock may be declared or paid, and no other distributions or redemptions may be made, on the Company's common stock; and (C) the Board will be increased by two seats and the holders of 55% of the outstanding Series D Convertible Preferred Stock will be entitled to fill such newly created seats.
Financial - Expense Highlight
Salaries and benefits expense decreased by $534,000, or 3.3%, to $15.8 million for the 2021 quarter compared to the 2020 quarter.
Revenue - Product Highlight
We provide: (i) advisory services; (ii) asset management services; (iii) hotel management services; (iv) project management services; (v) event technology and creative communications solutions; (vi) mobile room keys and keyless entry solutions; (vii) watersports activities and other travel, concierge and transportation services; (viii) hypoallergenic premium room products and services; (ix) debt placement and related services; (x) real estate advisory and brokerage services; and (xi) wholesaler, dealer manager and other broker-dealer services.
Financial - Cash Flow
These cash flows consisted of...Read more
M & A - Other
Other liquidity considerations-On December 5,...Read more
Financial - Expense
The change in general and...Read more
Other - Other
In addition, one or more...Read more
Other - Other
In addition, one or more...Read more
Financial - Income
The difference in income tax...Read more
Financial - Expense
General and administrative expenses decreased...Read more
Other - Other
Factors that could have a...Read more
Other - Other
Risk Factors" of our Annual...Read more
Other - Other
Other Developments On January 4,...Read more
Other - Other
In addition, and also effective...Read more
Other - Other
On February 1, 2021, the...Read more
Financial - Expense
Reimbursed expenses recorded may vary...Read more
Financial - Expense
Amortization of loan costs was...Read more
Other - Other
These were offset by $325,000...Read more
Financial - Cash Flow
These cash flows consisted of...Read more
Other - Other
The Second Amended and Restated...Read more
Other - Other
We seek to grow through...Read more
Financial - Dividend
The amortization of preferred stock...Read more
Financial - Expense
The change in salaries and...Read more
Financial - Debt
(7) The increase in debt...Read more
Financial - Shares
As of May 7, 2021,...Read more
Revenue - Product
Total revenues decreased by $69.9...Read more
Other - Other
Although we believe that the...Read more
Financial - Expense
As required for disclosure under...Read more
Financial - Cash Flow
These cash flows consisted of...Read more
Financial - Dividend
To the extent not paid...Read more
Financial - Cash Flow
The Company expects that the...Read more
Financial - Cash Flow
The Company expects that the...Read more
Financial - Income
The payment is included in...Read more
Other - Other
Forward-looking statements are generally identifiable...Read more
Financial - Expense
(2)The decrease in stock option...Read more
Financial - Cash Flow
In the 2020 quarter, as...Read more
Other - Other
When considering forward-looking statements, you...Read more
Financial - Expense
Current tax expense changed by...Read more
Financial - Debt
If we violate covenants in...Read more
Financial - Debt
If we violate covenants in...Read more
Other - Other
When preparing financial statements, management...Read more
Other - Other
When preparing financial statements, management...Read more
Financial - Dividend
Preferred dividends, declared and undeclared...Read more
Financial - Dividend
The Seventh Amendment (a) increases...Read more
Financial - Expense
(10) The decrease in cost...Read more
Other - Other
On January 11, 2021, the...Read more
Financial - Expense
Salaries and Benefits Expense....Read more
Other - Other
Certain segments of our business...Read more
Other - Other
Realized Gain (Loss) on Investments....Read more
Financial - Earnings
51 RESULTS OF OPERATIONS Three...Read more
Financial - Expense
Interest expense increased to $1.3...Read more
Financial - Cash Flow
To the extent that cash...Read more

Financial Statements, Disclosures and Schedules

Inside this 10-Q Quarterly Report

Material Contracts, Statements, Certifications & more

Ashford Inc. provided additional information to their SEC Filing as exhibits

Exhibit 31.1: Rule 13A-14(A)/15D-14(A) Certification

Exhibit 31.2: Rule 13A-14(A)/15D-14(A) Certification

Exhibit 32.1: Section 1350 Certification

Exhibit 32.2: Section 1350 Certification

Ticker: AINC
CIK: 1604738
Form Type: 10-Q Quarterly Report
Accession Number: 0001604738-21-000033
Submitted to the SEC: Tue May 11 2021 4:38:29 PM EST
Accepted by the SEC: Tue May 11 2021
Period: Wednesday, March 31, 2021
Industry: Management Consulting Services