Playa Hotels & Resorts(PLYA) - 2024 Q4 - Annual Results

Financial Performance - Net Income for Q4 2024 was $9.0 million, up from $1.0 million in Q4 2023, while Adjusted Net Income increased to $9.8 million from $6.0 million[4] - For the full year 2024, Net Income rose to $73.8 million compared to $53.9 million in 2023, with Adjusted Net Income increasing to $81.2 million from $66.3 million[6] - Total revenue for the year ended December 31, 2024, was $938,569,000, down from $977,504,000 in 2023, reflecting a decrease of approximately 4%[43] - Adjusted EBITDA for the year ended December 31, 2024, was $258,049,000, compared to $271,947,000 in 2023, indicating a decline of about 5%[45] - Net income for the year ended December 31, 2024, was $73.8 million, up 37.1% from $53.9 million in 2023[49] - The company reported a basic earnings per share of $0.57 for 2024, compared to $0.36 in 2023, reflecting a 58.3% increase[49] Revenue and Occupancy Metrics - Net Package RevPAR for Q4 2024 increased by 8.0% to $325.50, driven by a 6.4% rise in Net Package ADR and a 1.1 percentage point increase in Occupancy[4] - The occupancy rate for the total portfolio in Q4 2024 was 74.0%, an increase of 1.1 percentage points from 72.9% in Q4 2023[53] - The net package average daily rate (ADR) increased by 6.4% to $439.94 in Q4 2024, compared to $413.66 in Q4 2023[53] - Owned Net Revenue for the year ended December 31, 2024 increased by $11.3 million, or 3.7%, driven by a 2.5% increase in Net Package ADR and an 11.1% increase in Net Non-package Revenue[65] - Owned Net Revenue for the year ended December 31, 2024 decreased by $15.8 million, or 11.2%, compared to 2023, primarily due to an 8.5 percentage point decrease in Occupancy and a 1.4% decrease in Net Package ADR[68] EBITDA and Margins - Owned Resort EBITDA for Q4 2024 decreased by 8.8% to $67.1 million, with an EBITDA Margin of 32.4%, down 0.5 percentage points from 2023[4] - Adjusted EBITDA for Q4 2024 was $55.8 million, a decrease of 8.3% year-over-year, with an Adjusted EBITDA Margin of 26.5%, down 0.3 percentage points[4] - For the full year 2024, Owned Resort EBITDA decreased by 5.0% to $302.8 million, with an EBITDA Margin of 34.0%, down 0.6 percentage points from 2023[6] - Owned Resort EBITDA Margin for the year ended December 31, 2024 was 34.5%, an increase of 0.3 percentage points compared to the previous year, with a negative impact of 100 basis points from increased labor and related expenses[65] - Comparable Owned Resort EBITDA for Q4 2024 was $59,147,000, down from $63,324,000 in Q4 2023, a decrease of approximately 7%[42] Cash and Debt Position - As of December 31, 2024, the company held $189.3 million in cash and cash equivalents, with total interest-bearing debt of $1,078.0 million[13] - The total debt as of December 31, 2024, was $1,078 million, with a net debt of $888.7 million after accounting for cash and cash equivalents[51] - Cash and cash equivalents decreased to $189,278,000 as of December 31, 2024, from $272,520,000 in 2023, a decline of about 30%[47] - The effective interest rate on the term loan was 7.11% as of December 31, 2024[51] - The company had $225 million available in undrawn balances as of December 31, 2024[51] Strategic Developments - The company announced a tender offer from Hyatt Hotels Corporation for all outstanding shares at $13.50 per share, which is supported by the Playa executive team[9] - Forward-looking statements reflect the company's expectations and involve risks and uncertainties that could cause actual results to differ materially[18] Revenue Breakdown - Total Net Revenue includes Net Package Revenue, Net Non-package Revenue, Management Fee Revenue, and other revenues, with cost reimbursements excluded as they do not impact operating income[26] - Net Package Revenue is derived from the sale of all-inclusive packages, which include room accommodations, food and beverage services, and entertainment activities[22] - Management Fee Revenue was a minor contributor to operating results for the three months and years ended December 31, 2024 and 2023[25] Regional Performance - Owned Net Revenue for Jamaica for the year ended December 31, 2024 decreased by $30.3 million, or 13.8%, due to a travel advisory and Hurricane Beryl, resulting in a 6.3 percentage point decrease in Occupancy[70] - Owned Resort EBITDA for Jamaica for the year ended December 31, 2024 decreased by $29.2 million, or 36.2%, reflecting the adverse effects of external disruptions[70]