Playa Hotels & Resorts(US:PLYA)2023-02-23 21:05Revenue and Financial Performance - Total revenue for the year ended December 31, 2022, was $856.3 million, a 60.2% increase from $534.6 million in 2021[320]. - Net income for 2022 was $56.7 million, compared to a net loss of $89.7 million in 2021, marking a significant turnaround[323]. - Earnings per share (EPS) for 2022 was $0.34, compared to a loss per share of $0.55 in 2021[320]. - Operating income for 2022 was $129.8 million, a substantial improvement from an operating loss of $24.2 million in 2021[320]. - Cash provided by operating activities increased to $158.2 million in 2022, up from $29.6 million in 2021[329]. - Comprehensive income for 2022 was $68.4 million, compared to a comprehensive loss of $77.4 million in 2021[323]. - Package revenue for 2022 was $713.2 million, up from $438.0 million in 2021, indicating a growth of about 63%[370]. - Non-package revenue increased to $129.5 million in 2022 from $88.6 million in 2021, reflecting a growth of approximately 46%[370]. - Management fees for 2022 totaled $3.8 million, compared to $2.3 million in 2021, marking an increase of about 65%[370]. Operational Highlights - For the year ended December 31, 2022, $724.5 million, or 87.7%, of total net revenue was generated from resorts under the Hyatt, Hilton, and Wyndham brands[31]. - Direct bookings through playaresorts.com accounted for $116.3 million, or 14.2% of owned net revenue in 2022, a significant increase from $16.9 million in 2018[33]. - Approximately 38% of total Playa-managed room nights were direct stays in 2022, with direct bookings, including future stays, making up about 43%[36]. - The company operates a diversified portfolio of resorts across four main geographic markets, featuring a range of price points to foster guest loyalty and drive repeat business[31]. - The company has successfully converted two resorts into Wyndham Alltra all-inclusive resorts and began managing another Wyndham Alltra resort[33]. - The all-inclusive resort model is increasingly popular, providing guests with pre-purchased vacation packages and opportunities for incremental revenue through upgrades and premium services[31]. Debt and Financial Obligations - The Company’s 2022 Term Loan incurs interest based on SOFR plus a margin of 4.25%, with 100% of outstanding indebtedness bearing interest at floating rates as of December 31, 2022[290]. - The total debt as of December 31, 2022, was $1,065,453,000, which includes $1,059,796,000 in senior secured credit facilities and $5,657,000 in finance lease obligations[448]. - The effective interest rate for the 2022 Term Loan was 8.58% as of December 31, 2022[448]. - Aggregate debt maturities for the 2022 Term Loan total $1,100,000,000, with $11,000,000 due annually from 2023 to 2027 and $1,045,000,000 due thereafter[450]. - The company repaid $941.9 million in debt during 2022, compared to $34.5 million in 2021[329]. Employee and Community Engagement - The company employed approximately 14,100 employees worldwide, with 2,900 in Jamaica, 6,600 in Mexico, and 4,500 in the Dominican Republic[53]. - The company’s comprehensive benefits package is designed to attract and retain top talent, emphasizing employee training and development[45]. - The company has a proactive approach to community engagement, including partnerships with local organizations and initiatives like sponsoring a local school in Jamaica[46]. - The company established the Ernesto Oliver Lopez Memorial Fund to provide emergency financial aid to employees in need, reflecting its commitment to employee welfare[52]. Environmental, Social, and Governance (ESG) - The company’s ESG Committee focuses on incorporating sustainability and social responsibility into operations, reporting directly to the Board on these activities[39]. - The company has 14 resorts currently Green Globe certified, with five more in the certification process[43]. Currency and Foreign Exchange Impact - Approximately 75% of the company's resort-level operating expenses for the year ended December 31, 2022, were denominated in local currencies, primarily the Mexican Peso, Dominican Peso, and Jamaican Dollar[293]. - An immediate 5.0% adverse change in foreign exchange rates on Mexican Peso-denominated expenses would have impacted Owned Resort EBITDA by approximately $9.5 million year-to-date as of December 31, 2022[295]. - An immediate 5.0% adverse change in foreign exchange rates on Dominican Peso-denominated expenses would have impacted Owned Resort EBITDA by approximately $6.4 million year-to-date as of December 31, 2022[295]. - An immediate 5.0% adverse change in foreign exchange rates on Jamaican Dollar-denominated expenses would have impacted Owned Resort EBITDA by approximately $5.2 million year-to-date as of December 31, 2022[295]. Tax and Deferred Tax Assets - The effective tax rate for 2022 was (10.8)%, with an income tax benefit of $5.6 million driven by $10.1 million in inflation adjustments and $31.5 million from rate-favorable jurisdictions[4]. - As of December 31, 2022, total deferred tax assets amounted to $211.5 million, an increase from $188.2 million in 2021, while the valuation allowance increased to $177.8 million from $160.1 million[404]. - The net deferred tax asset as of December 31, 2022, was $33.7 million, compared to $28.1 million in 2021, indicating a positive trend in realizable tax assets[404]. Shareholder and Stock Information - The company repurchased 7,838,992 ordinary shares in 2022 at an average price of $5.90 per share, with approximately $53.7 million remaining under the share repurchase program as of December 31, 2022[426]. - The weighted-average number of shares outstanding during 2022 was 164.8 million, an increase from 163.4 million in 2021[320]. - The company had no anti-dilutive unvested restricted share awards for the year ended December 31, 2022[445].