Ashford Prime Consolidated Historical(A) | RC Hotels (Virgin Islands) Inc.(B) | Adjustments(C) | Ashford Prime Consolidated Pro Forma | ||||||||||||||
| Assets | |||||||||||||||||
| Cash and cash equivalents | $ | 85,708 | $ | 105 | $ | (64,000 | ) | (i) | $ | 64,176 | |||||||
| 1,371 | (ii) | ||||||||||||||||
| 40,992 | (iii) | ||||||||||||||||
| Investment in hotel properties, net | 1,034,073 | 55,181 | 64,000 | (i) | 1,153,254 | ||||||||||||
| Restricted cash | 32,007 | — | — | 32,007 | |||||||||||||
| Accounts receivable, net of allowance | 13,714 | 2,010 | — | 15,724 | |||||||||||||
| Inventories | 809 | 518 | — | 1,327 | |||||||||||||
| Note receivable | 8,098 | — | — | 8,098 | |||||||||||||
| Deferred costs, net | 3,867 | — | 1,008 | (iii) | 4,875 | ||||||||||||
| Prepaid expenses | 3,684 | 449 | — | 4,133 | |||||||||||||
| Investment in unconsolidated entity | 47,073 | — | — | 47,073 | |||||||||||||
| Investment in Ashford Inc., at fair value | 12,365 | — | 12,365 | ||||||||||||||
| Derivative assets | 1,795 | — | — | 1,795 | |||||||||||||
| Other assets | 2,415 | 53 | — | 2,468 | |||||||||||||
| Intangible asset, net | 23,240 | — | — | 23,240 | |||||||||||||
| Due from Ashford Trust OP, net | 110 | — | 110 | ||||||||||||||
| Due from related party, net | 535 | — | — | 535 | |||||||||||||
| Due from third-party hotel managers | 8,599 | 992 | — | 9,591 | |||||||||||||
| Total assets | $ | 1,278,092 | $ | 59,308 | $ | 43,371 | $ | 1,380,771 | |||||||||
| Liabilities and Equity | |||||||||||||||||
| Liabilities: | |||||||||||||||||
| Indebtedness | $ | 760,344 | $ | — | 42,000 | (iii) | $ | 802,344 | |||||||||
| Accounts payable and accrued expenses | 37,482 | 5,498 | — | 42,980 | |||||||||||||
| Dividends payable | 3,320 | — | — | 3,320 | |||||||||||||
| Unfavorable management contract liabilities | 198 | — | — | 198 | |||||||||||||
| Due to Ashford Inc. | 2,441 | — | — | 2,441 | |||||||||||||
| Due to third-party hotel managers | 1,146 | — | — | 1,146 | |||||||||||||
| Intangible liability, net | 3,696 | — | — | 3,696 | |||||||||||||
| Other liabilities | 1,146 | — | — | 1,146 | |||||||||||||
| Total liabilities | $ | 809,773 | $ | 5,498 | $ | 42,000 | $ | 857,271 | |||||||||
| 5.50% Series A cumulative convertible preferred stock, $.01 par value, 2,600,000 shares issued and outstanding at September 30, 2015 | 62,339 | — | 62,339 | ||||||||||||||
| Redeemable noncontrolling interests in operating partnership | 59,484 | — | — | 59,484 | |||||||||||||
| Equity: | |||||||||||||||||
| Common stock, $0.01 par value, 200,000,000 shares authorized, 29,736,757 shares issued, 28,471,004 shares outstanding at September 30, 2015 | 297 | — | 297 | ||||||||||||||
| Additional paid-in capital | 456,172 | 106,364 | 1,371 | (ii) | 563,907 | ||||||||||||
| Accumulated deficit | (83,564 | ) | (52,554 | ) | — | (136,118 | ) | ||||||||||
| Treasury stock, at cost (1,265,753 shares at September 30, 2015) | (21,826 | ) | — | — | (21,826 | ) | |||||||||||
| Total stockholders’ equity of the Company | 351,079 | 53,810 | 1,371 | 406,260 | |||||||||||||
| Noncontrolling interest in consolidated entities | (4,583 | ) | — | — | (4,583 | ) | |||||||||||
| Total equity | 346,496 | 53,810 | 1,371 | 401,677 | |||||||||||||
| Total liabilities and equity | $ | 1,278,092 | $ | 59,308 | $ | 43,371 | $ | 1,380,771 | |||||||||
| (A) | Represents the historical consolidated balance sheet of Ashford Prime as of September 30, 2015, as reported in its Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2015, filed on November 9, 2015. |
| (B) | Represents the historical balance sheet of RC Hotels (Virgin Islands) Inc. as of September 30, 2015, as included in Exhibit 99.1 of this Current Report on Form 8-K/A. |
| (C) | Represents adjustments for Ashford Prime’s purchase of the Ritz-Carlton St. Thomas as of September 30, 2015, which includes; (i) the cash consideration to be paid for the acquisition of the Ritz-Carlton St. Thomas; (ii) cash consideration received for the negative working capital assumed from the acquisition of the Ritz-Carlton St. Thomas; and (iii) the deferred loan costs and cash proceeds associated with the financing of a mortgage loan in connection with the acquisition of the Ritz-Carlton St. Thomas. |
| Ashford Prime Consolidated Historical(A) | Yountville Investors, LLC(B) | Yountville Investors, LLC Adjustments(C) | RC Hotels (Virgin Islands), Inc.(D) | RC Hotels (Virgin Islands), Inc. Adjustments(E) | Ashford Prime Consolidated Pro Forma | ||||||||||||||||||||
| Revenue | |||||||||||||||||||||||||
| Rooms | $ | 192,868 | $ | 5,607 | $ | — | $ | 22,476 | $ | — | $ | 220,951 | |||||||||||||
| Food and beverage | 58,368 | 1,954 | — | 11,770 | — | 72,092 | |||||||||||||||||||
| Other | 10,038 | 830 | — | 6,427 | — | 17,295 | |||||||||||||||||||
| Total hotel revenue | 261,274 | 8,391 | — | 40,673 | — | 310,338 | |||||||||||||||||||
| Other | 111 | — | — | — | — | 111 | |||||||||||||||||||
| Total revenue | 261,385 | 8,391 | — | 40,673 | — | 310,449 | |||||||||||||||||||
| Expenses | |||||||||||||||||||||||||
| Hotel operating expenses: | |||||||||||||||||||||||||
| Rooms | 41,895 | 1,346 | — | 6,158 | — | 49,399 | |||||||||||||||||||
| Food and beverage | 38,926 | 1,795 | — | 10,287 | — | 51,008 | |||||||||||||||||||
| Other expenses | 69,405 | 2,998 | 116 | (iii) | 14,984 | — | 87,503 | ||||||||||||||||||
| Management fees | 10,564 | 258 | (6 | ) | (i) | 1,419 | — | 12,235 | |||||||||||||||||
| Total hotel operating expenses | 160,790 | 6,397 | 110 | 32,848 | — | 200,145 | |||||||||||||||||||
| Property taxes, insurance and other | 13,781 | 407 | — | — | — | 14,188 | |||||||||||||||||||
| Depreciation and amortization | 32,384 | 1,030 | 113 | (ii) | 3,082 | (720 | ) | (i) | 35,889 | ||||||||||||||||
| Impairment charges | — | — | — | 15,086 | (15,086 | ) | (ii) | — | |||||||||||||||||
| Transaction costs | 255 | — | — | — | — | 255 | |||||||||||||||||||
| Advisory services fee | 9,776 | — | — | — | — | 9,776 | |||||||||||||||||||
| Corporate general and administrative | 3,810 | — | — | — | — | 3,810 | |||||||||||||||||||
| Total operating expenses | 220,796 | 7,834 | 223 | 51,016 | (15,806 | ) | 264,063 | ||||||||||||||||||
| Operating income (loss) | 40,589 | 557 | (223 | ) | (10,343 | ) | 15,806 | 46,386 | |||||||||||||||||
| Equity in loss of unconsolidated entity | (4,219 | ) | — | — | — | — | (4,219 | ) | |||||||||||||||||
| Interest income | 21 | — | — | — | — | 21 | |||||||||||||||||||
| Other income | 1,233 | — | — | — | — | 1,233 | |||||||||||||||||||
| Other expense | — | (698 | ) | 698 | (iv) | — | — | — | |||||||||||||||||
| Interest expense and amortization of premiums and loan costs | (28,060 | ) | (2,675 | ) | 2,675 | (v) | — | (1,995 | ) | (iii) | (30,055 | ) | |||||||||||||
| Write-off of loan costs and exit fees | (54 | ) | — | — | — | — | (54 | ) | |||||||||||||||||
| Unrealized loss on investment in Ashford Inc. | (5,621 | ) | — | — | — | — | (5,621 | ) | |||||||||||||||||
| Unrealized loss on derivatives | (2,101 | ) | — | — | — | — | (2,101 | ) | |||||||||||||||||
| Income (loss) before income taxes | 1,788 | (2,816 | ) | 3,150 | (10,343 | ) | 13,811 | 5,590 | |||||||||||||||||
| Income tax expense | (371 | ) | — | — | (vi) | — | (4 | ) | (iv) | (375 | ) | ||||||||||||||
| Net income (loss) | 1,417 | (2,816 | ) | 3,150 | (10,343 | ) | 13,807 | 5,215 | |||||||||||||||||
| Income from consolidated entities attributable to noncontrolling interests | (1,068 | ) | — | — | — | — | (1,068 | ) | |||||||||||||||||
| Net income attributable to redeemable noncontrolling interests in operating partnership | (671 | ) | — | (138 | ) | (vii) | — | (573 | ) | (v) | (1,382 | ) | |||||||||||||
| Net income (loss) attributable to the Company | (322 | ) | (2,816 | ) | 3,012 | (10,343 | ) | 13,234 | 2,765 | ||||||||||||||||
| Preferred dividends | (1,093 | ) | — | — | — | — | (1,093 | ) | |||||||||||||||||
| Net income (loss) available to common stockholders | $ | (1,415 | ) | $ | (2,816 | ) | $ | 3,012 | $ | (10,343 | ) | $ | 13,234 | $ | 1,672 | ||||||||||
| Income per share – basic: | |||||||||||||||||||||||||
| Income attributable to common stockholders | $ | (0.06 | ) | $ | 0.06 | ||||||||||||||||||||
| Weighted average common shares outstanding—basic | 25,109 | 25,109 | |||||||||||||||||||||||
| Income per share – diluted: | |||||||||||||||||||||||||
| Income attributable to common stockholders | $ | (0.06 | ) | $ | 0.06 | ||||||||||||||||||||
| Weighted average common shares outstanding—diluted | 25,109 | — | (F) | 25,109 | |||||||||||||||||||||
| Dividends declared per common share | $ | 0.25 | $ | 0.25 | |||||||||||||||||||||
| Amounts attributable to common stockholders: | |||||||||||||||||||||||||
| Net income (loss) attributable to the Company | $ | (322 | ) | $ | (2,816 | ) | $ | 3,012 | $ | (10,343 | ) | $ | 13,234 | $ | 2,765 | ||||||||||
| Preferred dividends | (1,093 | ) | — | — | — | — | (1,093 | ) | |||||||||||||||||
| Net income (loss) attributable to common stockholders | $ | (1,415 | ) | $ | (2,816 | ) | $ | 3,012 | $ | (10,343 | ) | $ | 13,234 | $ | 1,672 | ||||||||||
| Ashford Prime Consolidated Historical(A) | Yountville Investors, LLC(B) | Yountville Investors, LLC Adjustments(C) | RC Hotels (Virgin Islands) Inc.(D) | RC Hotels (Virgin Islands) Inc. Adjustments(E) | Ashford Prime Consolidated Pro Forma | ||||||||||||||||||||
| Revenue | |||||||||||||||||||||||||
| Rooms | $ | 226,495 | $ | 12,189 | $ | — | $ | 24,213 | $ | — | $ | 262,897 | |||||||||||||
| Food and beverage | 67,854 | 3,548 | — | 12,662 | — | 84,064 | |||||||||||||||||||
| Other | 12,844 | 1,540 | — | 7,263 | — | 21,647 | |||||||||||||||||||
| Total hotel revenue | 307,193 | 17,277 | — | 44,138 | — | 368,608 | |||||||||||||||||||
| Other | 115 | — | — | — | — | 115 | |||||||||||||||||||
| Total revenue | 307,308 | 17,277 | — | 44,138 | — | 368,723 | |||||||||||||||||||
| Expenses | |||||||||||||||||||||||||
| Hotel operating expenses: | |||||||||||||||||||||||||
| Rooms | 51,636 | 2,737 | — | 6,905 | — | 61,278 | |||||||||||||||||||
| Food and beverage | 44,297 | 3,422 | — | 11,577 | — | 59,296 | |||||||||||||||||||
| Other expenses | 80,593 | 5,778 | — | 19,323 | — | 105,694 | |||||||||||||||||||
| Management fees | 12,525 | 533 | (15 | ) | (i) | 1,324 | — | 14,367 | |||||||||||||||||
| Total hotel operating expenses | 189,051 | 12,470 | (15 | ) | 39,129 | — | 240,635 | ||||||||||||||||||
| Property taxes, insurance and other | 16,174 | 675 | — | — | — | 16,849 | |||||||||||||||||||
| Depreciation and amortization | 40,686 | 2,575 | 1,183 | (ii) | 6,120 | (2,970 | ) | (i) | 47,594 | ||||||||||||||||
| Advisory services fee | 12,534 | — | — | — | — | 12,534 | |||||||||||||||||||
| Transaction costs | 1,871 | — | — | — | — | 1,871 | |||||||||||||||||||
| Corporate general and administrative | 3,242 | — | — | — | — | 3,242 | |||||||||||||||||||
| Total operating expenses | 263,558 | 15,720 | 1,168 | 45,249 | (2,970 | ) | 322,725 | ||||||||||||||||||
| Operating income (loss) | 43,750 | 1,557 | (1,168 | ) | (1,111 | ) | 2,970 | 45,998 | |||||||||||||||||
| Interest income | 27 | — | — | — | 27 | ||||||||||||||||||||
| Other expense | — | (235 | ) | 235 | (iv) | — | — | — | |||||||||||||||||
| Interest expense and amortization of premiums and loan costs | (39,031 | ) | (5,853 | ) | 5,853 | (v) | — | (2,648 | ) | (iii) | (41,679 | ) | |||||||||||||
| Unrealized loss on derivatives | (111 | ) | — | — | — | — | (111 | ) | |||||||||||||||||
| Income (loss) before income taxes | 4,635 | (4,531 | ) | 4,920 | (1,111 | ) | 322 | 4,235 | |||||||||||||||||
| Income tax expense | (1,097 | ) | — | (174 | ) | (vi) | — | — | (iv) | (1,271 | ) | ||||||||||||||
| Net income (loss) | 3,538 | (4,531 | ) | 4,746 | (1,111 | ) | 322 | 2,964 | |||||||||||||||||
| Income from consolidated entities attributable to noncontrolling interests | (1,103 | ) | — | — | — | — | (1,103 | ) | |||||||||||||||||
| Net income attributable to redeemable noncontrolling interests in operating partnership | (496 | ) | — | (190 | ) | (vii) | — | 204 | (v) | (482 | ) | ||||||||||||||
| Net income (loss) attributable to the Company | 1,939 | (4,531 | ) | 4,556 | (1,111 | ) | 526 | 1,379 | |||||||||||||||||
| Preferred dividends | — | — | (3,575 | ) | (viii) | — | — | (3,575 | ) | ||||||||||||||||
| Net income (loss) available to common stockholders | $ | 1,939 | $ | (4,531 | ) | $ | 981 | $ | (1,111 | ) | $ | 526 | $ | (2,196 | ) | ||||||||||
| Income (loss) per share – basic: | |||||||||||||||||||||||||
| Net income (loss) attributable to common stockholders | $ | 0.08 | $ | (0.09 | ) | ||||||||||||||||||||
| Weighted average common shares outstanding—basic | 24,473 | 200 | (ix) | 24,673 | |||||||||||||||||||||
| Income (loss) per share – diluted: | |||||||||||||||||||||||||
| Net income (loss) attributable to common stockholders | $ | 0.07 | $ | (0.09 | ) | ||||||||||||||||||||
| Weighted average common shares outstanding—diluted | 33,325 | 200 | (ix) | (8,852 | ) | (G) | 24,673 | ||||||||||||||||||
| Dividends declared per common share | $ | 0.20 | $ | 0.20 | |||||||||||||||||||||
| Amounts attributable to common stockholders: | |||||||||||||||||||||||||
| Net income (loss) attributable to the Company | $ | 1,939 | $ | (4,531 | ) | $ | 4,556 | $ | (1,111 | ) | $ | 526 | $ | 1,379 | |||||||||||
| Preferred dividends | — | — | (3,575 | ) | (viii) | — | — | (3,575 | ) | ||||||||||||||||
| Net income (loss) attributable to common stockholders | $ | 1,939 | $ | (4,531 | ) | $ | 981 | $ | (1,111 | ) | $ | 526 | $ | (2,196 | ) | ||||||||||
| (A) | Represents the historical consolidated statement of operations of Ashford Prime for the year ended December 31, 2014, as reported in its Annual Report on Form 10-K for the year ended December 31, 2014, filed on March 2, 2015 and the condensed consolidated statement of operations of Ashford Prime for the nine months ended September 30, 2015, as reported in its Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2015, filed on November 9, 2015. |
| (B) | Represents the historical consolidated statement of operations of Yountville Investors, LLC for the the six months ended June 30, 2015, as reported in the Registrant's Current Report on Form 8-K/A filed on February 3, 2016; and the year ended December 31, 2014, as reported in the Registrant's Current Report on Form 8-K filed on on July 15, 2015. |
| (C) | Represents adjustments for Ashford Prime’s purchase of the Bardessono Inn & Spa for the six months ended June 30, 2015 and December 31, 2015; which include; (i) a contractual adjustment to management fees for the difference between the historical management fee the seller was obligated to pay and the management fee Ashford Prime contracted to pay; (ii) additional depreciation expense based on Ashford Prime's new cost basis in the acquired hotel; (iii) additional lease expense based on the estimated fair value of the ground lease; (iv) elimination of nonrecurring transaction costs incurred by the seller associated with the sale of the hotel; (v) the elimination of interest expense associated with indebtedness not assumed; (vi) no further adjustment to income tax expense to reflect total income tax expense as if the consolidated group filed with the Bardessono Inn & Spa for the six months ended June 30, 2015 and incremental income tax expense for the year ended December 31, 2014; (vii) adjustment to (income) loss attributable to redeemable noncontrolling interests in operating partnership for the incremental operating results of the Bardessono Inn & Spa based on ownership interests of 25.85% for the six months ended June 30, 2015 and 25.88% for the year ended December 31, 2014; (viii) adjustment for preferred dividends; and (ix) adjustment to basic and diluted weighted average shares outstanding for the year ended December 31, 2014 for the issuance of 200,000 shares of Ashford Prime common stock. |
| (D) | Represents the historical consolidated statement of operations of RC Hotels (Virgin Islands) Inc. for the the nine months ended September 30, 2015, as included in Exhibit 99.1 of this Current Report on Form 8-K/A. |
| (E) | Represents adjustments for Ashford Prime’s purchase of the Ritz-Carlton St. Thomas for the nine months ended September 30, 2015, and the year ended December 31, 2014; which include; (i) adjustment to depreciation expense based on Ashford Prime's new cost basis in the acquired hotel; (ii) elimination of impairment charges incurred by the seller associated with the sale of the hotel for the nine months ended September 30, 2015 (iii) interest expense and amortization associated with indebtedness incurred upon the acquisition of the hotel; (iv) additional income tax expense to reflect total income tax expense as if the consolidated group filed with the Ritz-Carlton St. Thomas for the nine months ended September 30, 2015 and no further adjustment to income tax expense to reflect total income tax expense as if the consolidated group filed with the Ritz-Carlton St. Thomas for the year ended December 31, 2014; and (v) adjustment to (income) loss attributable to redeemable noncontrolling interests in operating partnership for the incremental operating results of the Ritz-Carlton St. Thomas based on ownership interests of 16.53% for the nine months ended September 30, 2015 and 25.88% for the year ended December 31, 2014. |
| (F) | The assumed conversion of 7.4 million partnership units, the assumed conversion of 2.6 million shares Ashford Prime Series A cumulative convertible preferred stock into 3.4 million shares of Ashford Prime common stock, the effect of 69,000 performance stock units and the effect of 38,000 restricted units have been excluded from the pro forma diluted EPS calculation for the nine months ended September 30, 2015, as the impact would be anti-dilutive. |
| (G) | Represents an adjustment for the assumed conversion of 8.5 million partnership units as the partnership units should be excluded from the pro forma diluted EPS calculation for the year ended December 31, 2014, as the impact would be anti-dilutive. Additionally, the assumed conversion of 2.6 million shares Ashford Prime Series A cumulative convertible preferred stock into 3.4 million shares of Ashford Prime common stock has been excluded from the pro forma diluted EPS calculation for the year ended December 31, 2014, as the impact would be anti-dilutive. |
