Executive Summary

Q3 revenue excluding cost reimbursements was $73.3M, up 7.9% year over year; Adjusted EBITDA was $11.8M and Adjusted EPS was $0.96, while GAAP diluted EPS was $(3.87) .
Segment performance was mixed: Remington posted $12.4M hotel management fee revenue and $4.7M Adjusted EBITDA, while INSPIRE’s audio-visual revenue was $30.6M with $0.8M Adjusted EBITDA as normalized staffing pressured margins .
Corporate KPIs stable: AUM ~$7.9B, corporate cash $19.0M, fully diluted shares 8.2M, and loans $127.5M as of 9/30/23 .
Management highlighted solid revenue growth across INSPIRE, Premier and RED, but noted margin headwinds from staffing normalization; focus remains on growing third‑party business and AUM via Ashford Securities capital raising platform .

What Went Well and What Went Wrong

What Went Well
- Remington delivered high-margin hotel management results with $12.4M hotel management fee revenue and $4.7M Adjusted EBITDA; third‑party managed hotels reached ~40% of portfolio, reflecting mix shift progress .
- Ashford Securities continued to scale capital raising, assembling a 40‑firm syndicate for AHT Series J/K and reaching $76.8M to date; strategy seen as a path to grow AUM .
- Management tone: “we reported solid revenue growth at INSPIRE, Premier and RED Hospitality… and we continue to be encouraged with the pace of capital raising at Ashford Securities” — Monty J. Bennett, CEO .
What Went Wrong
- Consolidated margins compressed: despite revenue growth, Adjusted EBITDA declined versus prior year quarter to $11.8M, with management attributing pressure to normalized staffing levels across businesses .
- INSPIRE posted a net loss of $(1.1)M with only $0.8M Adjusted EBITDA in Q3 on staffing normalization and mix effects, despite $30.6M audio-visual revenue .
- GAAP net loss to common widened year over year to $(12.0)M (EPS $(3.87)), reflecting higher interest expense and preferred dividends burden (Series D), offsetting operating gains .

Financial Results

Metric	Q1 2023	Q2 2023	Q3 2023
Revenue (Total, $M)	$185.1	$192.7	$181.2
Cost Reimbursement Revenue ($M)	$104.3	$105.0	$107.9
Revenue ex. Cost Reimbursements ($M)	$80.9	$87.8	$73.3
GAAP Net Income (Loss) Attributable to Common ($M)	$(7.7)	$(7.5)	$(12.0)
GAAP Diluted EPS	$(2.59)	$(2.56)	$(3.87)
Adjusted Net Income ($M)	$13.4	$12.7	$7.8
Adjusted EPS (Diluted)	$1.67	$1.57	$0.96
Adjusted EBITDA ($M)	$17.6	$17.8	$11.8
YoY Growth ex. Cost Reimbursements	+35%	+12.3%	+7.9%

Segment breakdown (Q3 2023):

Segment	Revenue ($M)	Net Income (Loss) Attributable to Company ($M)	Adjusted EBITDA ($M)
Remington (Hotel Mgmt fee revenue)	$12.4	$1.1	$4.7
INSPIRE (Audio Visual revenue)	$30.6	$(1.1)	$0.8
Premier (Design & Construction fee revenue)	$7.4	$(0.1)	$2.7
RED Hospitality (Total revenue)	$8.4	$(0.3)	$0.9

KPIs:

KPI	Q3 2023
Gross AUM ($B)	$7.9
Corporate Cash ($M)	$19.0
Fully Diluted Shares (M)	8.2
Loans ($M)	$127.5
TTM Adjusted EBITDA ($M)	$66.6

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
—	—	—	—	—

No quantitative guidance ranges were issued in the Q3 2023 press release; management provided qualitative outlook on third‑party growth and AUM expansion via Ashford Securities .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q1 & Q2 2023)	Current Period (Q3 2023)	Trend
Capital raising via Ashford Securities	First half milestones: $21.5M raised at AHT by Q1; passed $500M cumulative capital raised by Q2; expanded broker-dealer/RIA syndicate to 35 firms	AHT Series J/K raised $76.8M to date; syndicate expanded to 40 firms; continued emphasis on differentiated products to grow AUM	Positive scaling momentum
Lodging industry demand	Q1: Strong industry trends; INSPIRE/Remington led growth	Q3: Industry performing well despite leisure normalization and macro concerns; margin impact from staffing normalization noted	Demand stabilizing; margins normalizing
Third‑party business mix	Q1–Q2: Remington third‑party mix at 38–39%	Q3: ~40% third‑party managed hotels; continued focus on third‑party growth across portfolio companies	Increasing third‑party exposure
Geographic expansion (RED)	Q1: Acquisition of Alii Nui/Maui Dive Shop; entry into Hawai‘i; plan to expand fleet and footprint	Q3: Continued opportunities in USVI/Caribbean/U.S. coastal markets; expansion into additional Ashford‑advised and third‑party hotels	Ongoing expansion
Credit/liquidity actions at advised REITs	Q1: Braemar loan extensions at Ritz‑Carlton Sarasota and Hotel Yountville	Q3: Braemar $200M corporate financing; loan upsizes/extensions at Scottsdale and Lake Tahoe; AHT preferred issuance ongoing	Improved financing flexibility

Note: The Q3 2023 earnings call transcript was not accessible via the document tools due to a database inconsistency; themes reflect management’s prepared remarks and press releases .

Management Commentary

“While we reported solid revenue growth at INSPIRE, Premier and RED Hospitality, our margins were negatively impacted as those businesses resume more normalized staffing levels compared to the prior year quarter, and we continue to be encouraged with the pace of capital raising at Ashford Securities.” — Monty J. Bennett, Chairman & CEO .
“The lodging industry is stabilizing as corporate and group business continues to grow and the leisure segment modestly softens after the 2022 surge… Ashford Securities has reached a milestone of $500 million of cumulative capital raised.” — Q2 commentary .
“Ashford delivered strong first quarter results… growth led by INSPIRE, Premier, and Remington… excited about our expansion into the Hawaiian market.” — Q1 commentary .

Q&A Highlights

The Q3 2023 earnings call transcript could not be retrieved due to a database inconsistency; Q&A details are unavailable from primary source tools.

Estimates Context

Wall Street consensus estimates via S&P Global (Capital IQ) were unavailable for AINC for Q3 2023 due to missing CIQ mapping in the estimates tool. As a result, we cannot quantify beats/misses versus consensus from S&P Global for this quarter.

Key Takeaways for Investors

Revenue growth remained positive, but normalized staffing and higher interest costs weighed on GAAP profitability; monitor margin recovery trajectories at INSPIRE and Premier through 2024 .
Remington’s steady high‑margin profile and growing third‑party mix (~40%) bolster fee resiliency amid lodging normalization; consider Remington contribution as a defensive lever .
Ashford Securities continues to catalyze AUM growth across advised platforms (AHT/BHR), improving platform funding optionality; watch the pace of preferred issuance and new product launches .
Balance sheet liquidity adequate (corporate cash $19.0M), but preferred dividends and loan service costs remain material headwinds to common equity returns; equity holders should focus on Adjusted EBITDA and cash generation trends .
Segment dispersion suggests targeted operating initiatives: cost discipline and labor optimization at INSPIRE, backlog and execution at Premier, continued third‑party wins at Remington, and expansion ROI at RED .
With formal guidance absent, narrative catalysts likely come from capital raising updates, third‑party contract wins, and REIT financing actions; track upcoming quarters for margin normalization signals .
Near‑term trading: mixed print with lower Adjusted EBITDA vs prior year and GAAP loss widening could cap upside absent new capital-raise milestones; medium‑term thesis hinges on fee platform scaling and margin stabilization across services units .

Ashford Inc. (AINC)·Q3 2023 Earnings Summary