Chatham Lodging Trust(US:CLDT)2021-05-03 16:00Financial Performance - Total revenue for Q1 2021 was $32,114,000, a decrease of 46.7% compared to $60,209,000 in Q1 2020[12] - Room revenue decreased to $29,390,000 in Q1 2021 from $53,048,000 in Q1 2020, representing a decline of 44.8%[12] - Net income attributable to common shareholders for Q1 2021 was $2,656,000, compared to a net loss of $27,783,000 in Q1 2020[12] - Revenue for the three months ended March 31, 2021, was $24.7 million, down from $90.9 million in the same period of 2020, indicating a decline of approximately 72.8%[45] - Net income was $2.7 million for Q1 2021, a significant improvement from a net loss of $(28.1) million in Q1 2020, driven by a gain of $23.8 million from the sale of the NewINK JV[137] - For the three months ended March 31, 2021, net income was $2.7 million compared to a net loss of $28.1 million for the same period in 2020[149] - EBITDA for the three months ended March 31, 2021, was $23.7 million, a significant improvement from $(4.1) million in the same period of 2020[149] - Adjusted EBITDA for the three months ended March 31, 2021, was $1.2 million, down from $16.5 million in the same period of 2020[149] Assets and Liabilities - Total assets as of March 31, 2021, were $1,362,747,000, a slight decrease from $1,370,257,000 as of December 31, 2020[10] - Total liabilities decreased to $645,281,000 as of March 31, 2021, from $677,797,000 as of December 31, 2020[10] - Shareholders' equity increased to $704,148,000 as of March 31, 2021, up from $677,752,000 at the end of 2020[10] - The Company's total debt outstanding as of March 31, 2021, was $599.7 million, a slight decrease from $608.8 million as of December 31, 2020[47] - The Company has a revolving credit facility with an outstanding balance of $120.0 million as of March 31, 2021, down from $135.3 million at the end of 2020[47] Cash Flow and Financing - Cash flows from operating activities resulted in a net cash used of $12.072 million, compared to $2.860 million in the prior year, indicating increased operational challenges[17] - The company reported a net cash provided by financing activities of $11.185 million, a decrease from $64.556 million in the previous year, indicating a shift in financing strategy[17] - Net cash flows used in operations for the three months ended March 31, 2021, were $12.1 million, driven by net income and non-cash items[154] - Net cash flows provided by financing activities for the three months ended March 31, 2021, were $11.2 million, primarily from common equity proceeds[154] Operational Expenses - The company reported total hotel operating expenses of $21,974,000 in Q1 2021, down from $36,341,000 in Q1 2020, a reduction of 39.4%[12] - Hotel operating expenses decreased by $14.4 million or 39.5% to $22.0 million for the three months ended March 31, 2021, from $36.3 million for the same period in 2020[124] - Room expenses, the largest component of hotel operating expenses, decreased by $6.2 million from $13.4 million in 2020 to $7.2 million in Q1 2021[125] - General and administrative expenses increased to $2.4 million for Q1 2021 from $1.6 million in Q1 2020, mainly due to the absence of bonus accruals in the prior year[129] - Interest expense decreased by 5.3% to $6.47 million for the three months ended March 31, 2021, compared to $6.83 million for the same period in 2020[134] Investments and Development - The company invested $8.889 million in hotel properties under development, reflecting ongoing expansion efforts despite previous investments of $6.197 million in the same period of 2020[17] - The company is developing a hotel in Los Angeles with total expected development costs of approximately $70 million, of which $52.5 million has been incurred to date[171] - The investment in hotel properties, net, was reported at $1.252 billion as of March 31, 2021, slightly down from $1.265 billion at the end of 2020[38] Shareholder Actions - The company did not declare any distributions per common share in Q1 2021, compared to $0.22 per share in Q1 2020[12] - The company declared total dividends of $0.00 per common share for the three months ended March 31, 2021, compared to $0.22 per common share for the same period in 2020[158] - The total amount of dividends declared for the three months ended March 31, 2021, was $0.00 per common share and LTIP unit, following a suspension due to COVID-19 impacts[168] Legal and Regulatory Matters - The company is involved in multiple class action lawsuits related to wage and hour law violations in California, indicating ongoing legal challenges[195] - The Company recorded a payment of $0.1 million related to the settlement of class action lawsuits in August 2020, representing its total exposure[88] - The Annual Report on Form 10-K for the year ended December 31, 2020 includes detailed discussions of risk factors, highlighting potential vulnerabilities in operations[196] Market Conditions - The U.S. lodging industry RevPAR declined 27.7% for the three months ended March 31, 2021, with a significant drop of 48.2% in January 2021 and a recovery of 34.4% in March 2021[110][119] - The company expects RevPAR to increase significantly in 2021 compared to 2020 but remain below 2019 levels[110] - The COVID-19 pandemic continues to disrupt financial markets, impacting the company's business and liquidity, with uncertain future effects[167]