BRAEMAR HOTELS & RESORTS ANNOUNCES SHAREHOLDER VALUE CREATION PLAN
- The sale of
Hilton Torrey Pines for$165 million , while evaluating the sale of two other hotels, - The repayment of its remaining 2024 debt maturities,
- A
$50 million preferred share redemption program, and - A
$50 million common share buyback authorization
The Company announced today that it has signed a definitive agreement to sell the 394-room
The Company also announced today that, by utilizing cash on hand, it has fully repaid the outstanding
Additionally, the Company announced plans to redeem
The Company also announced today that its Board of Directors has authorized a new stock repurchase program of up to
"Today's announcements reflect our commitment to reduce the Company's dividend and interest expense, enhance our capital structure and financial flexibility, as well as create value for our shareholders," said
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Reconciliation of |
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(Unaudited, in millions) |
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12 Months Ending |
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Net income (loss) |
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$ 0.3 |
Interest expense |
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11.5 |
Amortization of loan cost |
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0.5 |
Depreciation and amortization |
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4.2 |
Non-hotel EBITDA ownership expense |
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0.5 |
Income tax expense |
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0.2 |
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$ 17.2 |
Capital reserve |
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(2.5) |
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$ 14.7 |
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All information in this table is based upon unaudited operating financial data for the twelve month period ended
EBITDA is defined as net income (loss), computed in accordance with generally accepted accounting principles ("GAAP"), before interest, taxes, depreciation and amortization.
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 Braemar'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: our ability to complete the shareholder value creation plan on a timely basis, if at all; 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; risks associated with our ability to effectuate our dividend policy, including factors such as operating results and the economic outlook influencing our board's decision whether to pay further dividends at levels previously disclosed or to use available cash to pay dividends; 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 Braemar's filings with the
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 this risk 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.
Additional Information and Where to Find it
The Company has filed a revised Preliminary Proxy Statement on Schedule 14A with the
Participants
The Company and its directors and executive officers will be participants in the solicitation of proxies with respect to a solicitation by the Company. Information about those executive officers and directors of the Company and their ownership of the Company's common stock is set forth in the Preliminary Proxy Statement. Investors and security holders may obtain additional information regarding direct and indirect interests of the Company and its executive officers and directors in the matters to be voted upon at the Annual Meeting by reading the Preliminary Proxy Statement. These documents are or will be available free of charge at the
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