Price | 24.80 | EPS | 1 | |
Shares | 239 | P/E | 24 | |
MCap | 5,937 | P/FCF | 17 | |
Net Debt | 3,754 | EBIT | 355 | |
TEV | 9,691 | TEV/EBIT | 27 | TTM 2019-09-30, in MM, except price, ratios |
10-Q | 2020-09-30 | Filed 2020-11-06 |
10-Q | 2020-06-30 | Filed 2020-08-06 |
10-Q | 2020-03-31 | Filed 2020-05-11 |
10-K | 2019-12-31 | Filed 2020-02-27 |
10-Q | 2019-09-30 | Filed 2019-11-07 |
10-Q | 2019-06-30 | Filed 2019-08-01 |
10-Q | 2019-03-31 | Filed 2019-05-06 |
10-K | 2018-12-31 | Filed 2019-02-28 |
10-Q | 2018-09-30 | Filed 2018-11-02 |
10-Q | 2018-06-30 | Filed 2018-08-02 |
10-Q | 2018-03-31 | Filed 2018-05-04 |
10-K | 2017-12-31 | Filed 2018-03-01 |
10-Q | 2017-09-30 | Filed 2017-11-03 |
10-Q | 2017-06-30 | Filed 2017-08-03 |
10-Q | 2017-03-31 | Filed 2017-05-04 |
10-K | 2016-12-31 | Filed 2017-03-02 |
8-K | 2020-11-07 | |
8-K | 2020-11-05 | |
8-K | 2020-10-23 | |
8-K | 2020-09-18 | |
8-K | 2020-09-15 | |
8-K | 2020-09-14 | |
8-K | 2020-08-05 | |
8-K | 2020-05-29 | |
8-K | 2020-05-27 | |
8-K | 2020-05-19 | |
8-K | 2020-05-18 | |
8-K | 2020-05-11 | |
8-K | 2020-05-08 | |
8-K | 2020-04-24 | |
8-K | 2020-03-20 | |
8-K | 2020-03-16 | |
8-K | 2020-02-26 | |
8-K | 2020-02-20 | |
8-K | 2020-01-27 | |
8-K | 2020-01-15 | |
8-K | 2019-11-06 | |
8-K | 2019-09-13 | |
8-K | 2019-09-02 | |
8-K | 2019-08-28 | |
8-K | 2019-07-31 | |
8-K | 2019-05-06 | |
8-K | 2019-05-05 | |
8-K | 2019-04-26 | |
8-K | 2019-02-27 | |
8-K | 2019-02-22 | |
8-K | 2019-01-25 | |
8-K | 2018-11-01 | |
8-K | 2018-06-30 | |
8-K | 2018-04-27 | |
8-K | 2018-03-31 | |
8-K | 2018-03-06 | |
8-K | 2018-03-05 | |
8-K | 2017-12-31 |
Part I. Financial Information |
Item 1. Financial Statements. |
Note 1: Organization and Recent Events |
Note 2: Basis of Presentation and Summary of Significant Accounting Policies |
Note 3: Acquisitions and Dispositions |
Note 4: Property and Equipment |
Note 5: Consolidated Variable Interest Entities ("VIES") and Investments in Affiliates |
Note 6: Goodwill |
Note 7: Debt |
Note 8: Fair Value Measurements |
Note 9: Income Taxes |
Note 10: Share - Based Compensation |
Note 11: Earnings per Share |
Note 12: Business Segment Information |
Note 13: Commitments and Contingencies |
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations. |
Item 3. Quantitative and Qualitative Disclosures About Market Risk. |
Item 4. Controls and Procedures. |
Part II. Other Information |
Item 1. Legal Proceedings. |
Item 1A. Risk Factors. |
Item 2. Unregistered Sales of Equity Securities. |
Item 3. Defaults Upon Senior Securities. |
Item 4. Mine Safety Disclosures. |
Item 5. Other Information. |
Item 6. Exhibits |
EX-31.1 | pk-ex311_8.htm |
EX-31.2 | pk-ex312_6.htm |
EX-32.1 | pk-ex321_9.htm |
EX-32.2 | pk-ex322_7.htm |
Balance Sheet | Income Statement | Cash Flow |
---|---|---|
Assets, Equity
|
Rev, G Profit, Net Income
|
Ops, Inv, Fin
|
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
(Mark One)
| QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended
OR
| TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from to
Commission File Number
(Exact name of Registrant as specified in its Charter)
|
| |
(State or other jurisdiction of incorporation or organization) |
| (I.R.S Employer Identification No.) |
|
| |
(Address of principal executive offices) |
| (Zip Code) |
(Registrant’s telephone number, including area code): (
Securities registered pursuant to Section 12(b) of the Act.
Title of each class | Trading Symbol | Name of exchange on which registered |
| | |
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Sections 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days.
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the Registrant was required to submit such files).
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
| ☒ | Accelerated filer | ☐ |
Non-accelerated filer | ☐ | Smaller reporting company | |
Emerging growth company | |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes
The number of shares of common stock outstanding on October 30, 2020 was
Table of Contents
| Page | ||
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Item 1. |
| 2 | |
| Condensed Consolidated Balance Sheets as of September 30, 2020 and December 31, 2019 |
| 2 |
|
| 3 | |
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| 4 | |
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| 5 | |
|
| 6 | |
Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations |
| 20 |
Item 3. |
| 32 | |
Item 4. |
| 32 | |
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Item 1. |
| 33 | |
Item 1A. |
| 33 | |
Item 2. |
| 35 | |
Item 3. |
| 36 | |
Item 4. |
| 36 | |
Item 5. |
| 36 | |
Item 6. |
| 37 | |
|
| 38 |
1
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements.
PARK HOTELS & RESORTS INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in millions, except share and per share data)
|
| September 30, 2020 |
|
| December 31, 2019 |
| ||
|
| (unaudited) |
|
|
|
|
| |
ASSETS |
|
|
|
|
|
|
|
|
Property and equipment, net |
| $ | |
|
| $ | |
|
Assets held for sale, net |
|
| — |
|
|
| |
|
Investments in affiliates |
|
| |
|
|
| |
|
Goodwill |
|
| — |
|
|
| |
|
Intangibles, net |
|
| |
|
|
| |
|
Cash and cash equivalents |
|
| |
|
|
| |
|
Restricted cash |
|
| |
|
|
| |
|
Accounts receivable, net of allowance for doubtful accounts of $ |
|
| |
|
|
| |
|
Prepaid expenses |
|
| |
|
|
| |
|
Other assets |
|
| |
|
|
| |
|
Operating lease right-of-use assets |
|
| |
|
|
| |
|
TOTAL ASSETS (variable interest entities - $ |
| $ | |
|
| $ | |
|
LIABILITIES AND EQUITY |
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
Debt |
| $ | |
|
| $ | |
|
Accounts payable and accrued expenses |
|
| |
|
|
| |
|
Due to hotel managers |
|
| |
|
|
| |
|
Deferred income tax liabilities |
|
| |
|
|
| |
|
Other liabilities |
|
| |
|
|
| |
|
Operating lease liabilities |
|
| |
|
|
| |
|
Total liabilities (variable interest entities - $ |
|
| |
|
|
| |
|
Commitments and contingencies - refer to Note 13 |
|
| |
|
|
| |
|
Stockholders' Equity |
|
|
|
|
|
|
|
|
Common stock, par value $ September 30, 2020 and shares outstanding as of December 31, 2019 |
|
| |
|
|
| |
|
Additional paid-in capital |
|
| |
|
|
| |
|
Retained earnings |
|
| |
|
|
| |
|
Accumulated other comprehensive loss |
|
| ( | ) |
|
| ( | ) |
Total stockholders' equity |
|
| |
|
|
| |
|
Noncontrolling interests |
|
| ( | ) |
|
| ( | ) |
Total equity |
|
| |
|
|
| |
|
TOTAL LIABILITIES AND EQUITY |
| $ | |
|
| $ | |
|
Refer to the notes to the unaudited condensed consolidated financial statements.
2
PARK HOTELS & RESORTS INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME
(unaudited, in millions, except per share data)
|
| Three Months Ended September 30, |
|
| Nine Months Ended September 30, |
| ||||||||||
|
| 2020 |
|
| 2019 |
|
| 2020 |
|
| 2019 |
| ||||
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rooms |
| $ | |
|
| $ | |
|
| $ | |
|
| $ | |
|
Food and beverage |
|
| |
|
|
| |
|
|
| |
|
|
| |
|
Ancillary hotel |
|
| |
|
|
| |
|
|
| |
|
|
| |
|
Other |
|
| |
|
|
| |
|
|
| |
|
|
| |
|
Total revenues |
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rooms |
|
| |
|
|
| |
|
|
| |
|
|
| |
|
Food and beverage |
|
| |
|
|
| |
|
|
| |
|
|
| |
|
Other departmental and support |
|
| |
|
|
| |
|
|
| |
|
|
| |
|
Other property-level |
|
| |
|
|
| |
|
|
| |
|
|
| |
|
Management fees |
|
| |
|
|
| |
|
|
| |
|
|
| |
|
Impairment and casualty loss, net |
|
| |
|
|
| |
|
|
| |
|
|
| |
|
Depreciation and amortization |
|
| |
|
|
| |
|
|
| |
|
|
| |
|
Corporate general and administrative |
|
| |
|
|
| |
|
|
| |
|
|
| |
|
Acquisition costs |
|
| |
|
|
| |
|
|
| |
|
|
| |
|
Other |
|
| |
|
|
| |
|
|
| |
|
|
| |
|
Total expenses |
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) gain on sales of assets, net |
|
| ( | ) |
|
| |
|
|
| |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating (loss) income |
|
| ( | ) |
|
| |
|
|
| ( | ) |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
| — |
|
|
| |
|
|
| |
|
|
| |
|
Interest expense |
|
| ( | ) |
|
| ( | ) |
|
| ( | ) |
|
| ( | ) |
Equity in (losses) earnings from investments in affiliates |
|
| ( | ) |
|
| |
|
|
| ( | ) |
|
| |
|
Other loss, net |
|
| ( | ) |
|
| ( | ) |
|
| ( | ) |
|
| ( | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) income before income taxes |
|
| ( | ) |
|
| |
|
|
| ( | ) |
|
| |
|
Income tax expense |
|
| ( | ) |
|
| — |
|
|
| ( | ) |
|
| ( | ) |
Net (loss) income |
|
| ( | ) |
|
| |
|
|
| ( | ) |
|
| |
|
Net loss (income) attributable to noncontrolling interests |
|
| — |
|
|
| ( | ) |
|
| |
|
|
| ( | ) |
Net (loss) income attributable to stockholders |
| $ | ( | ) |
| $ | |
|
| $ | ( | ) |
| $ | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive income (loss), net of tax expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Currency translation adjustment, net of tax expense of $ |
|
| |
|
|
| ( | ) |
|
| |
|
|
| ( | ) |
Change in fair value of interest rate swap, net of tax expense of $ |
|
| — |
|
|
| — |
|
|
| ( | ) |
|
| — |
|
Total other comprehensive income (loss) |
|
| |
|
|
| ( | ) |
|
| ( | ) |
|
| ( | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive (loss) income |
|
| ( | ) |
|
| |
|
|
| ( | ) |
|
| |
|
Comprehensive (income) loss attributable to noncontrolling interests |
|
| — |
|
|
| ( | ) |
|
| |
|
|
| ( | ) |
Comprehensive (loss) income attributable to stockholders |
| $ | ( | ) |
| $ | |
|
| $ | ( | ) |
| $ | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) Earnings per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) Earnings per share - Basic |
| $ | ( | ) |
| $ | |
|
| $ | ( | ) |
| $ | |
|
(Loss) Earnings per share - Diluted |
| $ | ( | ) |
| $ | |
|
| $ | ( | ) |
| $ | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding - Basic |
|
| |
|
|
| |
|
|
| |
|
|
| |
|
Weighted average shares outstanding - Diluted |
|
| |
|
|
| |
|
|
| |
|
|
| |
|
Refer to the notes to the unaudited condensed consolidated financial statements.
3
PARK HOTELS & RESORTS INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited, in millions)
|
| Nine Months Ended |
| |||||
|
| September 30, |
| |||||
|
| 2020 |
|
| 2019 |
| ||
Operating Activities: |
|
|
|
|
|
|
|
|
Net (loss) income |
| $ | ( | ) |
| $ | |
|
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities: |
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
| |
|
|
| |
|
Gain on sales of assets, net |
|
| ( | ) |
|
| ( | ) |
Impairment and casualty loss, net |
|
| |
|
|
| |
|
Equity in losses (earnings) from investments in affiliates |
|
| |
|
|
| ( | ) |
Other loss, net |
|
| |
|
|
| |
|
Share-based compensation expense |
|
| |
|
|
| |
|
Amortization of deferred financing costs |
|
| |
|
|
| |
|
Distributions from unconsolidated affiliates |
|
| |
|
|
| |
|
Deferred income taxes |
|
| |
|
|
| — |
|
Changes in operating assets and liabilities |
|
| |
|
|
| ( | ) |
Net cash (used in) provided by operating activities |
|
| ( | ) |
|
| |
|
Investing Activities: |
|
|
|
|
|
|
|
|
Acquisitions, net of cash and restricted cash acquired |
|
| — |
|
|
| ( | ) |
Capital expenditures for property and equipment |
|
| ( | ) |
|
| ( | ) |
Proceeds from asset dispositions, net |
|
| |
|
|
| |
|
Contributions to unconsolidated affiliates |
|
| ( | ) |
|
| — |
|
Insurance proceeds for property damage claims |
|
| |
|
|
| |
|
Net cash provided by (used in) investing activities |
|
| |
|
|
| ( | ) |
Financing Activities: |
|
|
|
|
|
|
|
|
Proceeds from issuance of Senior Secured Notes |
|
| |
|
|
| — |
|
Borrowings from credit facilities |
|
| |
|
|
| |
|
Repayments of credit facilities |
|
| ( | ) |
|
| — |
|
Repayment of mortgage debt |
|
| ( | ) |
|
| — |
|
Debt issuance costs |
|
| ( | ) |
|
| ( | ) |
Dividends paid |
|
| ( | ) |
|
| ( | ) |
Distributions to noncontrolling interests, net |
|
| ( | ) |
|
| ( | ) |
Tax withholdings on share-based compensation |
|
| ( | ) |
|
| ( | ) |
Repurchase of common stock |
|
| ( | ) |
|
| — |
|
Net cash provided by financing activities |
|
| |
|
|
| |
|
Net increase (decrease) in cash and cash equivalents and restricted cash |
|
| |
|
|
| ( | ) |
Cash and cash equivalents and restricted cash, beginning of period |
|
| |
|
|
| |
|
Cash and cash equivalents and restricted cash, end of period |
| $ | |
|
| $ | |
|
|
|
|
|
|
|
|
|
|
Supplemental Disclosures |
|