AINC - Earnings call transcript Q4 2020

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Operator

Greetings, and welcome to the Ashford Incorporated Fourth Quarter 2020 Results Conference Call. At this time, all participants are in a listen only mode. A brief question-and–answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Jordan Jennings, Investor Relations for Ashford. Jordan. you, Thank

begin. You may

Jordan Jennings

everyone, review and and conference day, recent to XXXX welcome for Ashford to developments. on results you quarter to call for and Good update today’s the full-year fourth

be provisions to risks, statements forward-looking and to anticipated. discussed more fully the the are known could in yesterday will Eubanks, the of well assumptions, revise differ with assumptions and in is as company’s results Deric basis factors time, Officer; phase Senior today call President Financial date conference are the from or which Commission. included Jeremy statements of over forward-looking President call the of conference call information distributed being pursuant and call made this Securities forward-looking or Portfolio them. to cause conference At you numerous this subject harbor Operating Regulations. Chief and the Federal The Internet on and managing and results call Batis, upon press in are a Eric accessibility this made as a materially were let obligated the of uncertainties notice Securities Such or unknown that listen-only These release. Exchange not only the publicly filings this update Welter, certain of and Vice to in contain remind as me of based company Officer; are Chief statements Director are and those The On this Management. actual

accessed the release all the February on in the the provided have reconciliations reported measures, turn to company’s Also, unless at financial encouraged in Each in Form is or those schedules, provided stated, filed be in are which I certain together website otherwise fourth on review XX, to XXXX. in will may compare which terms quarter quarter X-K this and release. over other call used reconciliations all tables non-GAAP release XXXX addition, are information of In the the Jeremy. also now and on with provided fourth accompanying results with call call the earnings www.ashfordinc.com. XXXX, SEC company’s earnings discussed listener with been of the of this

Jeremy Welter

on businesses. then welcome fantastic of pandemic. our join call been management all companies, Good I as our provide our of are they cases, financial going long strategy hardships, morning, highlight of with ample the as great are: it discuss and how compensation, entire outright by runway. to want an Eric difficult overseeing discussing Through themes have for time. well I Director call us results of some our of and it that, can’t will begin the liquidity update to and and The financial products we fourth Deric has today throughout quarter, team. to you and thanking full-year shown and open review this services our we I Senior to up team senior then am for quarter deepest gratitude and tell results reduction resilience the and is furloughs Batis many as job hours, stabilized to will have done I Ashford lengthy He our as Trust light our we associates and energy. Management. key have side ongoing for a associates time, of our secured Eric be many response will our President growing After on COVID-XX regarding operations, we our this the our or Ashford’s in My the by years today. terminations. country. in thousands whether begin serious well who They team leadership of during have the XXXX. pleased in will Managing him portfolio are Portfolio executive Vice Q&A. to the unprecedented proud experienced

in third-party our growth strong are We initiative. seeing already results

have business that asset-light industry for the reactivated Securities have efforts at hostility and Ashford a going well our forward. we We growth in is comprehensive unique and positioned

While way to our performance actions emerged its services decisive portfolio the and and news issues and that operate and optimism moving the In to we as still persist, COVID-XX create year industry forward. and businesses. and we well the advisory development products pandemic, the the uncertainty of due as our how believe and the we around have last took company good response prudent, to adjusted we vaccine for existing manage platforms distribution

measures shareholders. products that The to asset our and flexibility manage, on designed and for We This of Our been managing cost-cutting our commitment this protect includes decisions their safety value services our the disruption enter and hotels and our the and implemented on enhance time, associates our to We top their financial focused products hotels growth priorities our been widespread remain mitigating focused businesses, at to while priority on experienced unwavering all coordination diligently at services have have significant to stakeholders. the and businesses guests, a protect pandemic. we long-term competitive business. an while during impact our responsibility position. health remaining and with same has in

which two own XXXX. assets gross XX, REIT Braemar, Ashford as of hotels Trust together billion and XX,XXX publicly platforms, advises Ashford of approximately and December rooms with traded $X.X XXX approximately

Ashford are specifically but its benefiting during recover. the Braemar resorts, luxury its is luxury of Although on focus been operating. Trust the currently one to first and properties the and have segment hotels open and operations which Braemar’s all suspended from at pandemic, and the are currently open were properties peak some hotels of of operating, all

$XXX Ashford will Trust provide get recently through corporate platform strategic that the closed believe liquidity financing we a enough that to million pandemic.

have and navigating with diligently platforms XXXX been REIT operating liquidity. this environment through enter Our challenging both ample

strong, and future Remington on have to the Both themselves Project objectives. ensure reducing vibrant crisis, furloughing position that long-term their or and making while on included on pay positioned a number both well are industry, of a believe future. has we associates spending. the and executives, we instituting pandemic focus focused both a this eliminating actions the which of for businesses premier to both those remain ultimate taking reducing of necessary execute at expenses, management companies. the the they strategic navigate to successful necessary large this In They their strategies decisions for stringent for recovery short, cuts forward, remain end adopted growth significantly continued and discretionary are Looking

to third-party third-party business initiatives. with businesses and fragmented, and is to their positioned The has achieve growth are continue industry both also have Remington We believe historically Premier these that business. on reputations two neither focused solid well incredibly and

We still of stages effort. in are early this the

third-party seen management We and momentum new signing owners XX Remington Premier hotel already have signing with six strong third-party project hotel with new contracts contracts. management

ahead, long-term Looking about excited we and extremely opportunity are growth third-party for the Remington at Premier. both

XXXX, XX Trust agreements Ashford or for REIT’s different entered modifications, Capital Additionally, Lismore Braemar billion seek approximately forbearances Lismore into locations. with refinancings $X.X across to and during the debt totaling of

order a financial to the loans agreements flexibility and intermediaries meet already this significant capital dedicated vast platforms. order resources through reallocated of platform existing given have these the to or under to formed raise loans. Ashford We effort covenants in on completed our the financial and to channel and requirements have modification much to and REIT’s other majority Securities forbearance corporate We respective grow in retail the broker-dealer in be future needed XXXX

non-traded of with Types differentiated raised capital equity future Our the but provide alternative deferred convertible include, non-traded investment goal for products. limited preferred market and for equity, Ashford REIT highly platforms. Securities are equity not is non-traded to may common to,

beginning year. this sometime Ashford Securities anticipates fundraising

all help our all that platforms increasing We with over of the goal are shareholder grow value. excited a source of us to pursue the fresh of capital will long-term,

unprecedented Looking and significant being and ahead, XXX and talent times, within believe of in periods structure management Despite downturns near-term industry we numerous have uncertain hospitality superior the space. are that is We our deep Great are disruption, challenges, in team people unique a our economic has ways. these businesses including and and is strategy the recession. operated and these impacted

industry it our will and travel to and While always been we believe has as back, has it has. bounced gather decimated, always return desire people’s

of investment starting not attractive very or recovery additional under are we an the hospitality of our We and ways management, see revenues, business increase assets four to opportunities business at did pre-pandemic. can unlevered industry incubation here. our hotel growth third-party businesses. The acquisition returns that the and higher There see are from our of in grow

Deric. to an option. attractive investors will we over Ashford an now the call significantly industry is believe pandemic, the exposure seeking by turn impacted I to For

Deric Eubanks

net adjusted EBITDA $X Adjusted Thanks, loss income was fourth quarter attributable quarter fourth was common quarter the million. Net million the million. stockholders $X.X and Jeremy. for for the for was to $XX.X

more businesses, results In for will highlights, then I provide will of terms some of discuss and details. financial portfolio our Eric

a quarter, Ashford $XXX financing, Trust million drawing down corporate the million closing. During at on closed strategic $XXX

loans. share advised converting exchange recorded $X.X in and with obtaining the preferred XX.X its sustainability approximately stock the and common the net This $XX,XXX stock. Lismore EBITDA advised fourth up the and capital Ashford stock, stock its of exchanging million for million REIT’s of a raised of important attributable the of an significant representing made Ashford its Trust Ashford for and million the industry. of and sale raises agreements shares progress $XX.X forbearance also fee of to of subsequent hotel of management to shored of capital equity other with million modifications million period preferred seek quarter has common Braemar effort into the revenue prior hotel been end have the Trust Also during of realized in X.X stock. common during registered agreements of of adjusted company forbearance to in REITs shares the $X.X the REITs maintaining sale outstanding their stock quarter, Trust the pandemic. during shares to the approximately debt. $XX.X approximately successful in Lismore the of totaling its has to loans $X.X fourth the common of and the count These the of current million also quarter. related by of REIT’s to XX% offer in quarter shares the in approximately subsequent was approximately million. liquidity XX% from its the end raised viability loss from and into Braemar the quarter, recently Remington uncertainty the quarter during lenders approximately revenue

This the management Utilization net quarter over strong XX% sales increased $X.X guests $X.X the loss of in the quarter, company results use loss digital to to keys contract. company $X.X with the Premier by shift $X.X attributable of million, the included for million. $X.X a the to finished of in EBITDA fourth been December, offered. million for year million. of preferences. over EBITDA quarter, fee has prior fourth net guest and of from to quarter XXXX million, XXX October $XX.X significant of of increased growth supported revenue million negative the adjusted year opting by Financial the negative of had revenue fourth For project hotels OpenKey’s for with digital quarter under when and a JSAV key XXX% revenue the prior majority attributable adjusted and

amendment its current it flexibility time fourth entered an and the needed its During extending with its challenging business. JSAV much modifying for lender, this into during giving debt, quarter,

and relates fully seven stock for diluted I million to deferred under associated the turn As We outstanding, with X.X common shares now our which to of strategic earmarked the XXXX, with our and preferred interest and put shares issued issuance our included balance units, call D compensation of restricted stock. Eric. program, X.X stock. convertible of December common investments million Series common over common the million XX, options X.X some had associated shares million minority had shares will and we

Eric Batis

Thank you, Deric.

and the the pleased We in face pandemic. updates our provide the responded with fourth during on are of measures businesses and have products services to COVID-XX quarter significant how we

these pandemic, the amazed continued by of Our work industry. to of be by times. associates be leadership services the our extraordinary entire the businesses and rest during I across our continue difficult significantly to the hard products and similar perseverance platform to impacted hospitality

leadership at products As of of policies March around pandemic implemented G&A our business. and I, became our time, apparent early expenses review and services more XXXX, the an the began executive furloughs in We broad each extensive of continue and reduce seriousness to total, crisis, at noncritical peak and many The which spending, of in XX% and the services also spending controls to this of were our implemented associates and or of products cash businesses furloughed stringent the day. preserve termed. that

on our guests offerings that have focused and In to the of addition, and new businesses launch associates. are products several of safety services our pivoted

products Our investment strategy, our as that we to but and invest core industry, services is this companies we initiative explain a to establish unique so, than an doing companies. operating and for believe products attractive providing strategy third-party more synergies hotel remains, a services platforms, would for of fully are in vendor. and we from receive our service service these In to where the grow and strategically strategy, act accelerator able levels we higher pricing they

also operating relationships that are a finished be OpenKey provides by our vast Bluetooth-enabled approximately XX% digital OpenKey. our budgets with been of lock hotels by are cost for the in system. to The and practices. from opting is when supported check fourth in growth leveraging referring Utilization experience. than the companies the on prior portfolio of in has CapEx moment digital year December very to number preferences. quarter to of by of shift ways able added lock digital by We XXX% strong attractive owned grow the replacing where business seeing fraction our a to module growing to them the can with hotels The satisfying advised industry quarter saw quarter This contract. a over a by the guest quarter, for key they consulting we at sales a increase of in upgrade fourth in best over year use while XXX significant the option a hotels revenue and keys at a the balance of more demand as growth under offered. the contactless, OpenKey guests is prior entire tighter strongest locks existing a quarter majority increased October the REITs, guest

we services phase, to and being to more OpenKey to excited of lead MSA quarter, the signed the announce growth agreement this significant quarters. most a in that expect with in in pilot are future is fourth major We able which on look brand master a details the agreement to we hotel The provide forward portfolio. to

future dynamic prospects to Credit for top-quality to a about business. continue be company, growth excited hotel We and growing the must including closures crisis, COVID of numerous his the during XX% who navigated and beginning team termed At expertise. service providing Dean challenging Remington’s this and Remington Sloan CEO, situations, its or workforce. approximately management this is furloughed the given hotel Remington be pandemic. of

two more third-party Remington in creates hotels of a seeking To deals. shape strong people industry manage has and moment for opportunity great already XX D.C., in begun actively and properties. development end, growth is states unique XX brands, XXXX. traveling Washington, to and signed reopened have hotels have business. XX a up As We again, and third-party Remington its boutique to for that independent Remington’s ramp has pipeline XX the new our in across contracts financially and added established including Remington operations, hotels is in this contracts January find managed

safety terminate Additionally, cleanliness the the the associates a Remington it comprehensive furlough as after guests. project support of services. standards for public significant spaces provides pandemic. during its to signed Premier adding of rooms business procurement has drives Ultratouch launched job efforts of to back Premier up and having efforts architecture, has growth associates pivoting cost-effective marketing program, and several guests survive multifamily or prioritized a management incorporate for multifamily XXXX, the hotel in which Premier third-party highest the year. and project to its management addition back design, total, projects its opportunities staff to development, begun Premier number the strong management COVID pipeline In agreements into did In in half fantastic date a signed to this has more XX has of and deals signed. add to hotel remainder and through project to XXXX and

in expect that We capitalize a to expect Premier and investment we rebound be position to to great occurs. capital when

at to company. building Ashford Securities, joining the fresh community. President for leading would Inc. Ashford capital Head at as Jay raising [Jay platform. like to he was Securities, of where instrumental and our was and relationships Distribution Prior this capital with strong I discuss Steigerwald] executive W.P. $X nine-years, for (Ph) us retail broker-dealer effort the Carey of Lastly, is in raising an billion

ramping are We this process back going XXXX effort into in of support up key and hiring the other are and staff. executives

people exceptional stakeholders, hire to and support strategy, in a best industry, provide Ashford offer with key Securities to along is exceptional to excellent our the the build partners believes shareholder our investment relationships all the service of success distribution with and returns. differentiated

discussed in offer of statement their the and registration goal security. effective on alternative a all for to file As product looking have substantial is providing investors to we Braemar term, investment of a Longer diversify to believe products opportunity we structures preferred portfolios. an with types has SEC different retail perpetual quarters, there previous with differentiated non-traded strategies, the

approach will for to our we goal to Q&A. are value. our a up products channels. call through over raising us the remarks, the pursue of long-term of capital a is and help shareholder grow goal will Our distribution with disciplined retail source capital retail all that take fresh short, we now That the and concludes open prepared to platforms excited increasing In multiple

Operator

Thank you. your Markets. Capital Batory with comes Our [Operator proceed Instructions] question from Please first question. Gaining Tyler with

Tyler Batory

good Thank you, morning.

to in you the or would shelved had. opportunity demand more this, into on a is sure interested for or I to specifically. of well? in tremendous I little projects, ask I bit I’m best quantify as XXXX question not pent-up the bit opportunity were but I’m if CapEx terms little think there this say, way business to that imagine for talk wanted Premier First a XXXX that should And a about in could XXXX. projects, perhaps more delayed I just about

Jeremy Welter

is Tyler, there is just is yet. this there. not demand just pent-up Yes, Jeremy. It The

a willing a have to examples are severity capital work by and few third-party cash during deep are where are pension the hotel the as were owned we hit. So they pockets, put that have hotels But we funds most can renovating the from the in we where basis you ERs the starved, where some are they pandemic given pandemic. that understand, to and

eliminate defers it does there So CapEx. been on All a lot doesn’t cutbacks has of is It it. it it.

And so a pent-up lot we believe there do of demand. is

not it We a of just seeing ton yet. are just

that around we within corner. is uniquely think focused I Where So been multifamily. the have is

any has our have, impacted. And sorry, have we and at history of anyone as than design there cutting-edge Americans believe, younger in so life you that with real as lot that we team of and because you in in leaders progressive homeownership is you being head sector. new that exclusively apartment, complex, demand expertise. the have And multifamily our in in key a is commensurate a in I as during multifamily why of And of hotels. half been about hired good in focused And are is now as exists millennials we But contracts think sector more is And relationships -- hired for exist pandemic a getting that of procurement country. estate on Americans and oversee important later of as multifamily. later amenities that have Premier. something a married traditional is And two demographics the know, is right hospitality being with within getting that form hasn’t as and in the a don’t sales mind, what attractive And we Well, reason are I’m of to that multifamily. on the think one there the we with has lot there a fact, efforts is the multifamily. design multifamily no

from within rooms we so multifamily utilizing using a ourselves as those our or and a company. the of that and that lot And also what we are renovation are space, guest suites we see have public design really you elements amenities within to differentiate would our traditional

industry we momentum, lot of initial a an have extended is gotten so have lot hospitality and And that a outside we that demand. of new of

some We really got projects. have nice

just think that interesting that. a projects an does share, hospitality And are that but some I that see really acceleration away and but nothing continue right we until are will exist. will probably see to few pent-up large pursuing to demand there to we activity. quarters of now, we It pursue continue we is

Tyler Batory

Okay. Very to gears good. And Ashford Securities. switching

you remind line You just start of along? could have time work in us process and of how to terms Can done move lot quickly a with the that capital raising that.

Jeremy Welter

what careful have at I share. and he to there because in really on our room, got I is significant looking got is now Yes. general can be right and me cost restrictions. the we cannot

rules or on significant management. quiver it think we got. be to not And sure, don’t another I that or can era then have us now. offerings some going just if think on are assets in on, there initiative grow is I Laws that is are exist a that say that Securities another is a our under overly to right this do leg I up for know XXX% two arsenal but that there jumping working to that are I’m products share a growth And we of avenue speed you I totally is stool it gun that is key What initiative, and not it.

attractive we those, once we an so And do on of believe details can I share security. one would we publicly, have be more which But file that.

have we actually if COVID than I we create of network created this scratch team. hadn’t think believe, own incredible from good within We hit. and would amount six-months, FINRA a have, broker-dealer our basically I started less I approved. mean, an raised money

And Carey. progress billion team from is got, has Steigerwald, the career W.P. his of He in $X Jay investment to Distribution, we we the with have Head close pleased capital have very made. the in that that the But space. raised pretty very, are capital a of we if alternative Alt So was only watermark. raised high of it the sorry, stats which at was space, dollars $XX you XXXX, year I’m was yes, the terms over in the last actually few billion which than in - XXXX, less billion the look was robust from he

down the a hospitality hospitality new that wasn’t initially just we was didn’t program hardest the right was hit. real out time pandemic. So estate significantly the it go area But and think to the launch during was because just it within

wanted we it, so to And it. ice to do we but relaunch plan

we Our expectation XXXX. is year, to not just believe We raise next we persistent this diligent do AUM efforts believe core raise it year. we in capital is the what continue and as be you in our of will capital an important in not to terms And do just strategy. will is would part because fees. And think asset of you traditionally know, of $X management

management. the have to add property We ability

We add management so have have we procurement just any platform. as renovation, architecture, to our grow the many ability audiovisual adviser our grow synergies services. type of on under to assets design, We

so And that very excited is are Ashford Securities. why we about

Tyler Batory

And question me. helpful. last then for Very

obviously, lots terms of disruption out potential acquisitions, there. Just adjacent of businesses, new in

a perhaps I with are a looks hospitality. generally, of is too something. just Just like level, just mean, terms curious, landscape the acquisitions what at potential on interested make for potential it out move acquisitions? you But in seeing high to there in early

Jeremy Welter

Yes.

and then I’m at we opportunities look this service see and way, go existing our where going ability have we me to the by it deploy to company outside of platform. where capital Let where

year, a where equity, help that we typically, any understanding this don’t me assume whether sliver even require on grow either form an Remington, kind of back. money, or of key us to capital the in equity That Remington. the you opportunity silver So deploy continue cap and with secure to loan exist or just some start And contracts as a we some signed just it for which key way is it do just we we out, of our of get returns Remington. stack. the money, don’t get shake give couple some in of up the if to capital, investment, return upfront cases, let will have just to a

a unlevered the management about we are usually We IRR get just that from on XX% fee returns income. the

with how And returns in estate participate place. on contract long when XX% that unlevered from upside in real depending XX%, to look at to so you ability go the can those XX%, the stays

very a deploy way it So to returns and is on capital attractive good business. our generate incremental for us very

lot form contract. signing a easy of can The audio we it the new there money other be, get services proposal in that And lot little visual be of in That the where hit the you of a to what in grow think that this we to hotel. and would ability understand, the of hotel certain given and was sometimes then for were five-year company, just upfront math. pretty be It us a and us as services next one And take of is groups is JSAV, which hotel upfront there is to our new significantly, contracts industry group of take out not a proposals bit to of in is the hotels is second for wouldn’t probably hit a quantify over put bonus bit as lot different year. is significantly. more is out. quite revenue very business that is the capital, we audiovisual CapEx we more what lot a of as going generally cases. not of events second really to is and And right the new well requires The a going profitability Actually, over from to is to going year. half in half just want getting so But because the is a to a of are properties now, there business. even

some north are IRRs seen unlevered we those Remington, so And where XX% have them of XX%. north cases, of in close and to

for have need in you acquisition So to in you is grow But work. is of capital a can capital We us Sebago, boats to we contract that decent of which we wanted have grow, the really Key RED, RED, we that which good want a to that on Islands. at lot with that is there business, a not we to West. if aggregate, basis. the seen Then deploy a that Virgin way per grow way U.S. to amount in looking did are bolt-on the put fleet of familiar in the

market our the get at concierge footprint. to infrastructure can sports strategy and that a businesses, is on we to and breadth into of into market boating how get Our and businesses, to RED services expertise services, services, within that and destination that water offer market of RED use through just then operate whole a expand

kind strategy. is hub-and-spoke like of a it So

have entered west of that business. at contracts anywhere multiple to to additional key have attractive seeing times from able So very now cash-on-cash that are expand and acquisition call that businesses acquire of once three to even continue can that travel a land Well, through with to returns, market. travel are are we are through leisure into it six what RED. north businesses grow that markets different that we multiples, to market, attractive EBITDA additional Sebago, some we water the secure expand get XX%, generally know have our where businesses ability within is we And land we an businesses in experience, sports or we then leisure, to been we

some integration. will of some horizontally bit Premier, the we investment acquisitions is to a of where I’m future we its less are really enter significant. RED. a grow as And actually pretty strategy that on services do make great would we say, markets. on some we profitability more vertical It cash is And acquisition opportunities in some and an seeing be business or require lot announcements business. through where actually that to return new our have more hopeful RED -- services, capital we get opportunities to so quite new doesn’t could the I see from extend a Premier Then But at in

we just looking where lines accelerate it which either record or so doing don’t incubate And some of to make some are of different a at plan our would services. have the of buying those and we provide could services, track internally, that businesses, got maybe we by we sense

services company and products, to Outside that exists title just our a even that we as company, are of captive. of lot like insurance we other at. our of looking own lot so Eventually, there And companies well. own are or own a maybe other that

we myriad And that are But say we capital are see, and XX% big we nothing that a taking would XX%, than or more. advanced investments, now, opportunities right different is what we just that those a more of lot IRRs is just I or generally in so right now have there picture, a is and the products negotiations. on have but of that services imminent returns unlevered existing

services our that pretty excited are businesses. we pursue through the So can about opportunities we

Tyler Batory

a will color. Okay. That you. great I there. leave it Thank is

Operator

Maher Instructions] Our with next question question. comes your Bryan [Operator Riley. B. from with Please proceed

Bryan Maher

Good afternoon. A couple of questions.

little going on color give something the financing the unusual Inc., Trust there kind advisory housekeeping or to calculated Maybe, the $X were Inc. can in a it by you a was and transactions higher Was on formula Ashford that. in of we us when capital to million fees that activity did relate about our payable quarter? Deric, one. Ashford we First, The than expected model.

Deric Eubanks

Yes, Deric. Bryan, it is

you shows advisory year-over-year in income on growth the fee. it statement, If Ashford, base look Inc.’s

the that the to look Ashford Inc. component different it ERFP show That break item. do And had out getting revenue it fee the advisory how base historically on to doesn’t the previously, a of growth. with has you that line we If was allocated REITS, had to lease. re-classed to

in just is advisory that fee. base Now the

is issue more actual economic an it fee So accounting the issue than of in paid. terms an advisory of

Bryan Maher

bit a Okay. revenue. the the income And Lismore other line, flowed thought than was through? we have Capital higher little Is other on then would where that it

Deric Eubanks

Yes.

Bryan Maher

And bigger it at going subsidiary have et pandemic Infinity is with businesses talked look stimulus you those hard significant and the during to cetera. pretty some back divisions. unemployment government when get be those demand about people out work we to two kind we of seemingly dictates, other How some coming when picture rebuilding and thinking hit, workforces? are the of benefits, especially How questions. of layoffs to JSAV Okay. and then the the B the When of

Jeremy Welter

screen. It it something certainly our yet, hasn’t radar is been on challenge that a but is

we we of the your cut record severe operating that think, track cost-cutting And did and there, a just team through have JSAV to businesses. in pretty talk have, because think an we was got an incredible with question. incredible they measure. I have specifically leadership I go basis But

the of XX, went I think lowest down I pandemic. at we associates from part the think, roughly XXX around to

flex now as XXX are maybe basis many We at on operating a as times associates.

with in an are pull the and work, it is And is to of out are also for make before we Right that, production, it ramp you at where excitement for in -- audiovisual to of of a the doing to are our are have socially I we we we so don’t maybe going we a some business those working cognizant to And but are performance and XX-hours people and getting challenge virtual, mean is of. virtual so performance. something three-days, individuals to are as able big well. where as lot able event get component operations lot And that know. spread services. an able lot now, are up successful. going think been been hybrid as I as taking a enthusiastic of where out, almost many we it events far. flex group they They then we last been place, events then to think maybe I also seen it that because but day as XX be progression off have that have But have people are be part means back as a grow huge a definitely having we the and the of something to up we that to with able But doing thrill. are incredible might incredible a is a meeting

that they I the that. think that. think And anxious able I so And they missing to to that do opportunity are are to be all do

Bryan Maher

then me. last for Great. just And

common. Is dividends. at are big any adjusting convertible on discussion there preferred preferred whereby think shares two of the around the the for exchange in preferred dividend drag payment now I conversion XXX lesser those maybe me dividend if memory the payment they that a up or on the variables drag? price more of pretty one a for more But serves the maybe those, convert, On ease lower of many or thought kind at order to a shares happens or at of in price

Jeremy Welter

question. right that we We recognize our the and that for of thanks constraints Bryan, some sit we sheet face now. balance Yes. we as have as

a of potentially that fashion. recap could value analysis on that But form common, days we preferred, of involve in outlook other Inc. quo, some just will just status We that. early is every some are a on capital is a excited It we tremendous doing Ashford believe of different I’m even new seeking pay lot sort some quarter. is there potentially that we very lot of I you do tell alternatives, don’t which a the holder. for and of We large common address them to do do about for anything the I’m the if amount

we because things where value of it there our go think do so status I quo. out if let’s convert to to It dilutive the models can and from were do status becomes years. through is the we strike lower internal even where quo, in two-years even five-years price, now, in you say, from that to trying and are are from on pretty our the that and more accretive. saw lot interesting is ways actually can is this a you And at them, of we value now, we do we one-year preferred if think look look and What company, now, a take at common take cases, some if

and of I do are but is as to think we can something table, that understand, so is anything there now. place there take anything. a it to there is that a you the don’t discuss on right prepared being lot that are very because is parts, thoughtful, is moving negotiation would we And just But

Deric Eubanks

But Bryan, to preferred, And believe the third is the made the have back, going better they right you as the I based going back, that party would and were the what value I that they Remington are growth, that, that that we given acquisitions Yes. and revenues. hotel on just a to focus any pre-pandemic. mean, also to bigger value didn’t huge think on about and the businesses, represents is And come for fees Remington’s Premier industry of those of comes we back they add represents, come are if value focus that hotel which than pre-pandemic, us now.

know back revenues growth Premier’s We at based back to So that hotels. CapEx that going is demand our comes built-in are to is point. come on just some spending. as the

to the grow status a even flow is So come and come as quo to cash believe in back Jeremy going so. there we are to even and scenario, said, businesses back going from

Bryan Maher

To it are phrase you correct? To clear, I though, every the the Right. and clear, But keeps be dividend are though, other paying still other key you is lower. quarter here, accrue, dividend every because preferred understand quarter. the the non-paid rates doing be that why interest

Deric Eubanks

Yes. is That correct.

Bryan Maher

Okay. you. Thank

Operator

at no are questions today’s This this There time. concludes conference. further

for you disconnect lines time. may Have at your this day. You Thank your participation. a wonderful

Ashford (AINC) 26 Feb 212020 Q4 Earnings call transcript