Hyatt Hotels Corporation
Table of Contents
Financial Information (unaudited)
- Reconciliation of Non-GAAP Measure: Reconciliation of Net Income Attributable to Hyatt Hotels Corporation to EBITDA and EBITDA to Adjusted EBITDA and Total Revenues to Adjusted Revenues
- Reconciliation of Non-GAAP Measure: Earnings per Diluted Share and Net Income Attributable to Hyatt Hotels Corporation, to Earnings per Diluted Share, Adjusted for Special Items and Adjusted Net Income Attributable to Hyatt Hotels Corporation - Three Months Ended September 30, 2020 and September 30, 2019
- Reconciliation of Non-GAAP Measure: Earnings per Diluted Share and Net Income Attributable to Hyatt Hotels Corporation, to Earnings per Diluted Share, Adjusted for Special Items and Adjusted Net Income Attributable to Hyatt Hotels Corporation - Nine Months Ended September 30, 2020 and September 30, 2019
- Reconciliation of Non-GAAP Measure: SG&A Expenses to Adjusted SG&A Expenses
- Reconciliation of Non-GAAP Measure: Comparable Owned and Leased Hotels Operating Margin to Owned and Leased Hotels Operating Margin
Hyatt Hotels Corporation
Reconciliation of Non-GAAP Measure: Reconciliation of Net Income (Loss) Attributable to Hyatt Hotels Corporation to EBITDA and EBITDA to Adjusted EBITDA and Total Revenues to Adjusted Revenues (in millions)
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||||||||||||
September 30, | Change | Change | September 30, | Change | Change | ||||||||||||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||||||||||||||||||||
Net income (loss) attributable to Hyatt Hotels Corporation | ($) | (%) | ($) | (%) | |||||||||||||||||||||||||||||||||||||||
$ | (161) | $ | 296 | $ | (457) | (154.2)% | $ | (500) | $ | 445 | $ | (945) | (212.3)% | ||||||||||||||||||||||||||||||
Interest expense | 35 | 19 | 16 | 88.7 % | 87 | 58 | 29 | 49.9 % | |||||||||||||||||||||||||||||||||||
(Benefit) provision for income taxes | (59) | 109 | (168) | (153.8) % | (188) | 148 | (336) | (227.0) % | |||||||||||||||||||||||||||||||||||
Depreciation and amortization | 80 | 85 | (5) | (6.4) % | 233 | 248 | (15) | (6.0) % | |||||||||||||||||||||||||||||||||||
EBITDA | (105) | 509 | (614) | (120.6)% | (368) | 899 | (1,267) | (140.9)% | |||||||||||||||||||||||||||||||||||
Contra revenue | 7 | 5 | 2 | 20.5 % | 20 | 16 | 4 | 21.4 % | |||||||||||||||||||||||||||||||||||
Revenues for the reimbursement of costs incurred on behalf of | (267) | (617) | 350 | 56.8 % | (1,015) | (1,826) | 811 | 44.5 % | |||||||||||||||||||||||||||||||||||
managed and franchised properties | |||||||||||||||||||||||||||||||||||||||||||
Costs incurred on behalf of managed and franchised properties | 278 | 633 | (355) | (56.1) % | 1,068 | 1,871 | (803) | (42.9) % | |||||||||||||||||||||||||||||||||||
Equity losses from unconsolidated hospitality ventures | 20 | 5 | 15 | 341.1 % | 45 | 2 | 43 | NM | |||||||||||||||||||||||||||||||||||
Stock-based compensation expense | 3 | 4 | (1) | (25.5) % | 20 | 28 | (8) | (28.6) % | |||||||||||||||||||||||||||||||||||
Gains on sales of real estate | - | (373) | 373 | 100.0 % | (8) | (374) | 366 | 97.9 % | |||||||||||||||||||||||||||||||||||
Asset impairments | - | 9 | (9) | (99.5) % | 52 | 13 | 39 | 277.7 % | |||||||||||||||||||||||||||||||||||
Other (income) loss, net | 19 | (25) | 44 | 173.9 % | 114 | (104) | 218 | 208.9 % | |||||||||||||||||||||||||||||||||||
Pro rata share of unconsolidated owned and leased hospitality | (3) | 13 | (16) | (127.5) % | (7) | 38 | (45) | (119.5) % | |||||||||||||||||||||||||||||||||||
ventures Adjusted EBITDA | |||||||||||||||||||||||||||||||||||||||||||
Adjusted EBITDA | $ | (48) | $ | 163 | $ | (211) | (129.9)% | $ | (79) | $ | 563 | $ | (642) | (114.1)% | |||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||||||||||||
September 30, | Change | Change | September 30, | Change | Change | ||||||||||||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||||||||||||||||||||
($) | (%) | ($) | (%) | ||||||||||||||||||||||||||||||||||||||||
Total revenues | $ | 399 | $ | 1,215 | $ | (816) | (67.2)% | $ | 1,642 | $ | 3,745 | $ (2,103) | (56.2)% | ||||||||||||||||||||||||||||||
Add: Contra revenue | 7 | 5 | 2 | 20.5 % | 20 | 16 | 4 | 21.4 % | |||||||||||||||||||||||||||||||||||
Less: Revenues for the reimbursement of costs incurred on behalf | (267) | (617) | 350 | 56.8 % | (1,015) | (1,826) | 811 | 44.5 % | |||||||||||||||||||||||||||||||||||
of managed and franchised properties | |||||||||||||||||||||||||||||||||||||||||||
Adjusted revenues | $ | 139 | $ | 603 | $ | (464) | (77.0)% | $ | 647 | $ | 1,935 | $ (1,288) | (66.5)% | ||||||||||||||||||||||||||||||
Adjusted EBITDA Margin % | (35.0)% | 26.9 % | (61.9)% | (12.3) % | 29.1 % | (41.4) % | |||||||||||||||||||||||||||||||||||||
Adjusted EBITDA Margin % Change in Constant Currency | (61.8)% | (41.2)% | |||||||||||||||||||||||||||||||||||||||||
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Hyatt Hotels Corporation
Reconciliation of Non-GAAP Measure: Earnings (Losses) per Diluted Share and Net Income (Loss) Attributable to Hyatt Hotels Corporation, to Earnings (Losses) per Diluted Share, Adjusted for Special Items and Adjusted Net Income (Loss) Attributable to Hyatt Hotels Corporation - Three Months Ended September 30, 2020 and September 30, 2019
(in millions, except per share amounts)
Location on Condensed Consolidated | Three Months Ended | ||||||||
Statements of Income (Loss) | September 30, | ||||||||
Net income (loss) attributable to Hyatt Hotels Corporation | 2020 | 2019 | |||||||
$ | (161) | $ | 296 | ||||||
Earnings (losses) per diluted share | $ | (1.59) | $ | 2.80 | |||||
Special items | |||||||||
Restructuring expenses (a) | Other income (loss), net | 22 | - | ||||||
Utilization of Avendra and other proceeds (b) | Costs incurred on behalf of managed and franchised properties; | ||||||||
depreciation and amortization | 6 | 11 | |||||||
Fund deficits (c) | Revenues for the reimbursement of costs incurred and costs incurred on | ||||||||
behalf of managed and franchised properties; other income (loss), net | 6 | 4 | |||||||
Unrealized gains (d) | Other income (loss), net | (8) | (3) | ||||||
Gains on sales of real estate (e) | Gains on sales of real estate | - | (373) | ||||||
Asset impairments (f) | Asset impairments | - | 9 | ||||||
Unconsolidated hospitality ventures (g) | Equity losses from unconsolidated hospitality ventures | - | 6 | ||||||
Other (h) | Other income (loss), net | (1) | (3) | ||||||
Special items - pre-tax | 25 | (349) | |||||||
Income tax benefit (provision) for special items | Benefit (provision) for income taxes | (14) | 92 | ||||||
Total special items - after-tax | 11 | (257) | |||||||
Special items impact per diluted share | $ | 0.11 | $ | (2.43) | |||||
Adjusted net income (loss) attributable to Hyatt Hotels Corporation | $ | (150) | $ | 39 | |||||
Earnings (losses) per diluted share, adjusted for special items | $ | (1.48) | $ | 0.37 | |||||
- Restructuring expenses - During the three months ended September 30, 2020 (Q3 2020), we recognized $22 million in restructuring expenses related to severance and related charges as a result of the COVID-19 pandemic.
- Utilization of Avendra and other proceeds - During Q3 2020 and the three months ended September 30, 2019 (Q3 2019), we recognized expenses related to the partial utilization of the Avendra LLC sale proceeds for the benefit of our hotels. The gain recognized in conjunction with the sale of Avendra LLC was included as a special item during the year ended December 31, 2017.
- Fund deficits - During Q3 2020 and Q3 2019, we recognized net deficits on certain funds due to the timing of revenue and expense recognition that we expect will reverse in future periods.
- Unrealized gains - During Q3 2020 and Q3 2019, we recognized unrealized gains due to the change in fair value of our marketable securities.
- Gains on sales of real estate - During Q3 2019, we recognized a $272 million gain on the sale of Hyatt Regency Atlanta and a $101 million gain on the sale of the property adjacent to Grand Hyatt San Francisco and assignment of the related Apple store lease.
- Asset impairments - During Q3 2019, we recognized a $9 million impairment charge related to certain management agreement intangibles.
- Unconsolidated hospitality ventures - During Q3 2019, we recognized a $6 million impairment charge related to one unconsolidated hospitality venture.
- Other - Q3 2019 includes $2 million of income related to the release of the contingent consideration liability recorded in connection with the acquisition of Two Roads in 2018.
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Hyatt Hotels Corporation
Reconciliation of Non-GAAP Measure: Earnings (Losses) per Diluted Share and Net Income (Loss) Attributable to Hyatt Hotels Corporation, to Earnings (Losses) per Diluted Share, Adjusted for Special Items and Adjusted Net Income (Loss) Attributable to Hyatt Hotels Corporation - Nine Months Ended September 30, 2020 and September 30, 2019
(in millions, except per share amounts)
Location on Condensed Consolidated | Nine Months Ended | ||||||||
Statements of Income (Loss) | September 30, | ||||||||
2020 | 2019 | ||||||||
Net income (loss) attributable to Hyatt Hotels Corporation | $ | (500) | $ | 445 | |||||
Earnings (losses) per diluted share | $ | (4.93) | $ | 4.17 | |||||
Special items | |||||||||
Restructuring expenses (a) | Other income (loss), net | 69 | - | ||||||
Asset impairments (b) | Asset impairments | 52 | 13 | ||||||
Unrealized (gains) losses (c) | Other income (loss), net | 36 | (23) | ||||||
Utilization of Avendra and other proceeds (d) | Costs incurred on behalf of managed and franchised properties; | ||||||||
depreciation and amortization | 29 | 30 | |||||||
Fund deficits (e) | Revenues for the reimbursement of costs incurred and costs incurred on | ||||||||
behalf of managed and franchised properties; other income (loss), net | 25 | 9 | |||||||
Gains on sales of real estate (f) | Gains on sales of real estate | (8) | (374) | ||||||
Release of contingent consideration liability (g) | Other income (loss), net | - | (29) | ||||||
Other (h) | Equity losses from unconsolidated hospitality ventures; Other income | (7) | (1) | ||||||
(loss), net | |||||||||
Special items - pre-tax | 196 | (375) | |||||||
Income tax benefit (provision) for special items | Benefit (provision) for income taxes | (64) | 99 | ||||||
Total special items - after-tax | 132 | (276) | |||||||
Special items impact per diluted share | $ | 1.30 | $ | (2.59) | |||||
Adjusted net income (loss) attributable to Hyatt Hotels Corporation | $ | (368) | $ | 169 | |||||
Earnings (losses) per diluted share, adjusted for special items | $ | (3.63) | $ | 1.58 | |||||
- Restructuring expenses - During the nine months ended September 30, 2020 (YTD 2020), we recognized $69 million in restructuring expenses related to severance and related charges as a result of the COVID-19 pandemic.
- Asset impairments - During YTD 2020, we recognized $52 million of impairment charges related to goodwill, property and equipment, operating lease right-of-use assets, and definite-lived intangibles. During the nine months ended September 30, 2019 (YTD 2019), we recognized $13 million of impairment charges related to certain management agreement intangibles.
- Unrealized (gains) losses - During YTD 2020 and YTD 2019, we recognized unrealized losses and gains, respectively, due to the change in fair value of our marketable securities.
- Utilization of Avendra and other proceeds - During YTD 2020 and YTD 2019, we recognized expenses related to the partial utilization of the Avendra LLC sale proceeds for the benefit of our hotels. The gain recognized in conjunction with the sale of Avendra LLC was included as a special item during the year ended December 31, 2017.
- Fund deficits - During YTD 2020 and YTD 2019, we recognized net deficits on certain funds due to the timing of revenue and expense recognition that we expect will reverse in future periods.
- Gains on sales of real estate - During YTD 2020, we recognized a $4 million pre-tax gain related to the sale of our controlling interest in entities that are developing a hotel, parking, and retail space and a $4 million pre-tax gain on the sale of a building. During YTD 2019, we recognized a $272 million gain on the sale of Hyatt Regency Atlanta and a $101 million gain on the sale of the property adjacent to Grand Hyatt San Francisco and assignment of the related Apple store lease.
- Release of contingent consideration liability - During YTD 2019, we recognized $29 million of income related to the release of the contingent consideration liability recorded in connection with the acquisition of Two Roads in 2018.
- Other - During YTD 2020, we recognized $5 million of realized gains. During YTD 2019, we recognized an $8 million gain attributable to sales activity related to certain unconsolidated hospitality ventures, which was offset by impairment charges of $7 million.
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Hyatt Hotels Corporation published this content on 04 November 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 04 November 2020 21:40:05 UTC