Name: Ashford Inc. Q1 2024 Earnings Call
Start: 2024-05-08T20:08:48.000Z

Executive Summary

Q1 2024 revenue excluding cost reimbursement was $94.8M with Adjusted EBITDA rising to $23.1M and Adjusted diluted EPS at $1.99; GAAP diluted EPS remained negative at $(2.43), showing improvement vs $(2.59) in Q1 2023 .
Versus Q4 2023, Adjusted EBITDA accelerated materially ($23.1M vs $13.2M), while revenue ex-reimbursement was slightly lower ($94.8M vs $97.4M), driven by strength in INSPIRE and RED and continued capital-raising momentum at Ashford Securities .
Strategic catalyst: Board approved a plan to terminate registration and delist (reverse/forward split), expected to save >$2.5M annually; holders under 10,000 shares would be cashed out at $5.00 per pre-split share (125.2% premium to 4/1/24 close), subject to shareholder approval in summer 2024 .
Investor relations dynamic: Q1 conference call was cancelled (no transcript/Q&A), elevating importance of press disclosures and the ongoing going‑private process .

What Went Well and What Went Wrong

What Went Well
- Adjusted EBITDA improved YoY and QoQ to $23.1M; management highlighted ongoing strength at INSPIRE and RED and capital-raising progress at Ashford Securities .
- INSPIRE delivered $44.9M audio-visual revenue, $1.8M Net Income, and $6.5M Adjusted EBITDA, with hospitality and show services continuing to rebound .
- Premier’s third‑party pipeline expanded (10 engagements; $1.7M expected fees), with $9.4M design and construction fee revenue and $5.6M Adjusted EBITDA .
What Went Wrong
- GAAP diluted EPS remained negative at $(2.43) on preferred dividends and corporate items despite solid non‑GAAP performance .
- Advisory base fees edged down YoY ($11.5M vs $12.1M in Q1 2023), reflecting lower Trust/Braemar base fee contributions .
- Q1 investor call cancellation reduced transparency into drivers and outlook detail, limiting near‑term estimate recalibration and guidance clarity .

Metric	Q3 2023	Q4 2023	Q1 2024
Total Revenues ($USD Millions)	$181.215	$206.813	$209.134
Revenue ex Cost Reimbursement ($USD Millions)	$73.3	$97.4	$94.8
GAAP Diluted EPS ($USD)	$(3.87)	$(4.36)	$(2.43)
Adjusted Diluted EPS ($USD)	$0.96	$1.02	$1.99
Adjusted EBITDA ($USD Millions)	$11.767	$13.202	$23.073
Base Advisory Fees ($USD Millions)	$11.514	$11.620	$11.547

Segment breakdown (Products & Services and Advisory):

Segment	Q1 2023 Revenues ($USD Millions)	Q1 2024 Revenues ($USD Millions)	Q1 2023 Adj. EBITDA ($USD Millions)	Q1 2024 Adj. EBITDA ($USD Millions)
Remington	$101.464	$113.810	$4.885	$4.090
Premier	$9.771	$12.965	$2.746	$5.584
INSPIRE	$40.409	$44.996	$6.875	$6.529
RED	$7.651	$11.288	$1.625	$2.290
OpenKey	$0.389	$0.353	$(0.738)	$(0.548)
Other (Warwick, Pure Wellness, Lismore)	$0.930	$4.637	$(0.179)	$1.711
Products & Services Total	$160.614	$188.049	$15.214	$19.656
Advisory Total	$20.881	$21.249	$12.430	$11.774
Corporate/Other Adj. EBITDA	N/A	N/A	$(10.032)	$(8.357)
Consolidated Total	$185.122	$209.134	$17.612	$23.073

Selected operating KPIs and capital structure:

KPI	Q3 2023	Q4 2023	Q1 2024
Gross AUM ($USD Billions)	$7.9	$7.5	$7.5
Cash & Cash Equivalents ($USD Millions)	$28.018	$52.054	$52.364
Fully Diluted Shares (Millions)	8.2	8.4	9.1
Loans ($USD Millions)	$127.5	$141.1	$143.7
AHT Non‑Traded Preferred Raised (Cumulative) ($USD Millions)	$76.8	$105.0	$122.0

Business unit highlights (Q1 2024):

Unit	Revenue Detail	Net Income Attrib. to Company	Adj. EBITDA
Remington	Hotel mgmt fee revenue $12.5M	$1.1M	$4.1M
INSPIRE	Audio-visual revenue $44.9M	$1.8M	$6.5M
Premier	Design & construction fees $9.4M	$2.3M	$5.6M
RED	Revenue $11.2M	$0.5M	$2.3M

Metric	Period	Previous Guidance	Current Guidance	Change
Annual public company cost savings	Post-deregistration (target summer 2024 initiation, subject to vote)	None	>$2.5M per year savings expected from going‑private plan	New
Investor communications	Q1 2024	Call scheduled	Q1 call cancelled	Lower transparency
Shareholder structure (cash‑out threshold)	Special Meeting (summer 2024)	None	<10,000 shares per account cashed out at $5.00 per pre‑split share (125.2% premium to 4/1/24 close)	New
Transaction costs	Transaction execution	None	Est. $5.5M cash paid for shares + ~$6.7M transaction expenses	New

No formal quantitative revenue/EPS/margin/OpEx/tax guidance was provided for Q1 2024 in the earnings materials .

Topic	Previous Mentions (Q3 2023)	Previous Mentions (Q4 2023)	Current Period (Q1 2024)	Trend
Going‑private/deregistration plan	Not discussed	Not discussed	Plan approved; reverse/forward split, delisting, >$2.5M annual savings	New/transformational
Capital raising (Ashford Securities)	AHT preferred cum. $76.8M; 40 BD/RIA syndicate	AHT preferred cum. $105M; 42 BD/RIA	AHT preferred cum. $122M; 43 BD/RIA	Improving momentum
Third‑party management mix (Remington)	49 of 121 third‑party (~40%)	54 of 122 (~44%)	53 of 121 (~44%)	Stable/high mix
INSPIRE activity	Audio‑visual revenue $30.6M; Adj. EBITDA $0.8M	$36.3M; Adj. EBITDA $3.9M	$44.9M; Adj. EBITDA $6.5M	Strengthening
Premier third‑party engagements	5 deals; $0.5M fees	7 deals; $0.4M fees	10 deals; $1.7M expected fees	Accelerating
Lodging macro tone	“Normalization of leisure; macro concerns”	Same tone reiterated	No call; press release focused on transaction	Neutral/unchanged commentary

“The lodging industry continues to perform well despite a normalization of leisure travel and general macroeconomic concerns. Our performance this quarter was led by solid revenue growth at INSPIRE and RED Hospitality. Further, we continue to be encouraged with the pace of capital raising at Ashford Securities.” — Monty J. Bennett, Chairman & CEO (Q4 commentary) .
“Moving forward, we will continue to focus on growing our third‑party business for our portfolio companies and growing our assets under management at our advised platforms.” — Monty J. Bennett (Q3 commentary) .
Transaction rationale: The Board determined ongoing public company costs outweigh benefits; going‑private plan designed to reduce record holders below 300, provide liquidity to smaller holders at $5/share, and allow management to focus on long‑term growth .

No Q&A for Q1 2024; the investor conference call was cancelled (originally scheduled for May 9, 2024) .

S&P Global/Capital IQ consensus estimates for AINC were unavailable due to missing CIQ mapping; as a result, estimate comparisons for Q1 2024 could not be performed and Wall Street consensus context is not available [SpgiEstimatesError].

Non‑GAAP performance strengthened: Adjusted EBITDA rose to $23.1M and Adjusted diluted EPS to $1.99, with INSPIRE and RED continuing to drive operating momentum .
GAAP EPS remains negative due to preferred dividends and corporate costs; monitoring progress on cost containment and capital structure remains critical .
Strategic inflection: Proposed reverse/forward split and deregistration could meaningfully reduce costs (>$2.5M annually) and alter shareholder liquidity/profile; vote expected summer 2024 .
Capital raising via Ashford Securities is a bright spot (AHT preferred raised to $122M; expanding BD/RIA syndicate), supporting fee growth and AUM stability .
Segment mix is diversifying with stable/high third‑party management at Remington and accelerating third‑party engagements at Premier (pipeline expansion) .
Near‑term trading: Expect the narrative to be driven by going‑private milestones, cost savings realization, and continued strength at INSPIRE; absence of Q1 call adds uncertainty until the Special Meeting timeline advances .
Medium‑term: Focus on execution across advised platforms (AHT refinancing/paydowns, Braemar loan actions) and sustaining growth in fee‑generating businesses to offset corporate costs and preferred dividends .