Playa Hotels & Resorts(US:PLYA)2022-05-05 20:06Financial Performance - For Q1 2022, Playa generated net income of $42.7 million, total revenue of $219.6 million, and Adjusted EBITDA of $76.9 million, a significant recovery from a net loss of $69.7 million and total revenue of $77.7 million in Q1 2021[91]. - Total revenue for the three months ended March 31, 2022, increased by $141.8 million, or 182.4%, compared to the same period in 2021[101]. - Total net revenue for the three months ended March 31, 2022, increased by $137.9 million, or 183.2%, compared to the same period in 2021[101]. - The company experienced a net income of $42.7 million for the three months ended March 31, 2022, compared to a net loss of $(69.7) million in Q1 2021, representing a $112.5 million improvement[101]. - Adjusted EBITDA for the three months ended March 31, 2022, was $76.9 million, a significant increase of $79.4 million compared to $(2.5) million in Q1 2021, representing a 3,171.6% increase[99]. Operational Metrics - The company's Net Package RevPAR for Q1 2022 was $280.78, compared to $91.40 in Q1 2021, indicating a strong rebound in occupancy and pricing power[91]. - Occupancy rate for the total portfolio reached 72.4% in Q1 2022, up 40.8 percentage points from 31.6% in Q1 2021, representing a 129.1% increase[99]. - Net Package Revenue for the three months ended March 31, 2022, was $180.0 million, an increase of $117.9 million, or 190.0%, compared to $62.1 million in Q1 2021[99]. - Net Package ADR for the three months ended March 31, 2022, was $388.07, an increase of $99.19, or 34.3%, compared to $288.88 in Q1 2021[99]. - The Yucatán Peninsula segment reported an Owned Resort EBITDA of $29.5 million, up 310.6% from $7.2 million in Q1 2021[138]. Revenue Sources - Food and beverage revenue increased to $24,236 million, a 138.5% increase from $10,161 million in the same period last year[107]. - Management Fee Revenue for the three months ended March 31, 2022, was $1.1 million, an increase of $713, or 207.3%, compared to $344, in Q1 2021[99]. - For the three months ended March 31, 2022, segment Owned Net Revenue increased to $211.7 million, a 182.9% increase from $74.8 million in the same period of 2021[137]. Cost and Expenses - Net Direct Expenses for the three months ended March 31, 2022, were $102.4 million, an increase of $44.2 million, or 75.8%, compared to $58.3 million in Q1 2021[104]. - Selling, general and administrative expenses increased by $12.6 million, or 51.0%, driven by higher occupancy and related costs[108]. - Total net direct expenses rose to $102,472 million, reflecting an 83.6% increase from $55,800 million year-over-year[107]. Economic and Market Conditions - The ongoing COVID-19 pandemic has significantly impacted occupancy levels, but recovery trends are evident as travel demand increases[86]. - Playa is actively monitoring economic uncertainties, including inflation and geopolitical tensions, which could affect the lodging industry and operational costs[87]. - Inflationary pressures were noted, with direct resort expenses approximately 200 basis points higher than pre-pandemic levels, primarily due to increased labor and utility costs[159]. Future Outlook - Future growth may involve strategic acquisitions and expansions, contingent on favorable market conditions and financing arrangements[87]. - The company intends to pursue additional sources of liquidity depending on the economic environment and its financial performance[168]. - The company may use proceeds from future financings to refinance existing indebtedness, finance resort projects, or for general working capital[169]. Cash Flow and Liquidity - Available cash increased to $299.8 million as of March 31, 2022, up from $270.1 million at the end of 2021, driven by improved cash flow from operations[162]. - The company expects to meet short-term liquidity needs through existing cash balances and net cash provided by operations, with a focus on pricing discipline and guest satisfaction[163]. - For the three months ended March 31, 2022, the net cash provided by operating activities was $37.6 million, compared to a net cash used of $26.6 million for the same period in 2021[173]. Debt and Financing - As of March 31, 2022, the company expects to repay approximately $37.9 million of its outstanding Term Loan in 2022 and $9.0 million in February 2023, with $62.6 million of scheduled contractual obligations remaining in 2022[167]. - Principal payments on the Term Loan amounted to $2.5 million for the three months ended March 31, 2022[177]. - Approximately 15% of the company's outstanding indebtedness bore interest at floating rates as of March 31, 2022, while 85% bore interest at fixed rates[184].