Company Quick10K Filing
Park Hotels & Resorts
Price24.80 EPS1
Shares239 P/E24
MCap5,937 P/FCF17
Net Debt3,754 EBIT355
TEV9,691 TEV/EBIT27
TTM 2019-09-30, in MM, except price, ratios
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 2020-05-29
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

PK 10Q Quarterly Report

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-10 pk-ex10_172.htm
EX-31.1 pk-ex311_6.htm
EX-31.2 pk-ex312_8.htm
EX-32.1 pk-ex321_7.htm
EX-32.2 pk-ex322_9.htm

Park Hotels & Resorts Earnings 2020-03-31

Balance SheetIncome StatementCash Flow
151296302017201820192020
Assets, Equity
2.41.91.41.00.50.02017201820192020
Rev, G Profit, Net Income
0.80.40.1-0.3-0.6-1.02017201820192020
Ops, Inv, Fin

pk-10q_20200331.htm
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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

(Mark One)

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2020

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 001-37795

 

Park Hotels & Resorts Inc.

(Exact name of Registrant as specified in its Charter)

 

 Delaware

 

36-2058176

(State or other jurisdiction of

incorporation or organization)

 

(I.R.S Employer

Identification No.)

 

1775 Tysons Boulevard., 7th Floor, Tysons, VA

 

22102

(Address of principal executive offices)

 

(Zip Code)

(Registrant’s telephone number, including area code): (571) 302-5757

 

 

Securities registered pursuant to Section 12(b) of the Act.

 

Title of each class

Trading Symbol

Name of exchange on which registered

Common Stock, $0.01 par value per share

PK

New York Stock Exchange

 

 

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. Yes  No 

 

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). Yes No

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.

 

Large accelerated filer

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 No

 

The number of shares of common stock outstanding on May 8, 2020 was 235,594,251.

 

 

 

 


 

Table of Contents

 

PART I. FINANCIAL INFORMATION

 

Page

 

 

 

 

Item 1.

Financial Statements (unaudited)

 

2

 

Condensed Consolidated Balance Sheets as of March 31, 2020 and December 31, 2019

 

2

 

Condensed Consolidated Statements of Comprehensive Income for the Three Months Ended March 31, 2020 and 2019

 

3

 

Condensed Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2020 and 2019

 

4

 

Condensed Consolidated Statements of Equity for the Three Months Ended March 31, 2020 and 2019

 

5

 

Notes to Condensed Consolidated Financial Statements

 

6

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

 

18

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

 

29

Item 4.

Controls and Procedures

 

29

 

 

 

 

PART II. OTHER INFORMATION

 

 

Item 1.

Legal Proceedings

 

30

Item 1A.

Risk Factors

 

30

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

 

32

Item 3.

Defaults Upon Senior Securities

 

33

Item 4.

Mine Safety Disclosures

 

33

Item 5.

Other Information

 

33

Item 6.

Exhibits

 

34

 

Signatures

 

35

 

 

 

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)

 

 

 

March 31, 2020

 

 

December 31, 2019

 

 

 

(unaudited)

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

Property and equipment, net

 

$

9,383

 

 

$

9,594

 

Assets held for sale, net

 

 

 

 

 

71

 

Investments in affiliates

 

 

30

 

 

 

35

 

Goodwill

 

 

 

 

 

607

 

Intangibles, net

 

 

46

 

 

 

46

 

Cash and cash equivalents

 

 

1,304

 

 

 

346

 

Restricted cash

 

 

38

 

 

 

40

 

Accounts receivable, net of allowance for doubtful accounts of $2 and $2

 

 

113

 

 

 

180

 

Prepaid expenses

 

 

73

 

 

 

83

 

Other assets

 

 

46

 

 

 

40

 

Operating lease right-of-use assets

 

 

244

 

 

 

248

 

TOTAL ASSETS (variable interest entities - $237 and $242)

 

$

11,277

 

 

$

11,290

 

LIABILITIES AND EQUITY

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

Debt

 

$

4,870

 

 

$

3,871

 

Accounts payable and accrued expenses

 

 

188

 

 

 

217

 

Due to hotel managers

 

 

103

 

 

 

159

 

Deferred income tax liabilities

 

 

35

 

 

 

50

 

Other liabilities

 

 

241

 

 

 

282

 

Operating lease liabilities

 

 

257

 

 

 

260

 

Total liabilities (variable interest entities - $218 and $219)

 

 

5,694

 

 

 

4,839

 

Commitments and contingencies - refer to Note 13

 

 

 

 

 

 

 

 

Stockholders' Equity

 

 

 

 

 

 

 

 

Common stock, par value $0.01 per share, 6,000,000,000 shares authorized,

235,721,204 shares issued and 235,427,598 shares outstanding as of

March 31, 2020 and 239,589,639 shares issued and 239,386,877

shares outstanding as of December 31, 2019

 

 

2

 

 

 

2

 

Additional paid-in capital

 

 

4,504

 

 

 

4,575

 

Retained earnings

 

 

1,129

 

 

 

1,922

 

Accumulated other comprehensive loss

 

 

(5

)

 

 

(3

)

Total stockholders' equity

 

 

5,630

 

 

 

6,496

 

Noncontrolling interests

 

 

(47

)

 

 

(45

)

Total equity

 

 

5,583

 

 

 

6,451

 

TOTAL LIABILITIES AND EQUITY

 

$

11,277

 

 

$

11,290

 

 

Refer to the notes to the unaudited condensed consolidated financial statements.

 

 

2


 

PARK HOTELS & RESORTS INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(unaudited, in millions, except per share data)

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31,

 

 

 

2020

 

 

2019

 

Revenues

 

 

 

 

 

 

 

 

Rooms

 

$

362

 

 

$

403

 

Food and beverage

 

 

161

 

 

 

183

 

Ancillary hotel

 

 

57

 

 

 

55

 

Other

 

 

19

 

 

 

18

 

Total revenues

 

 

599

 

 

 

659

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

 

 

 

 

 

 

 

Rooms

 

 

112

 

 

 

107

 

Food and beverage

 

 

123

 

 

 

124

 

Other departmental and support

 

 

172

 

 

 

149

 

Other property-level

 

 

60

 

 

 

49

 

Management fees

 

 

25

 

 

 

33

 

Impairment loss and casualty gain, net

 

 

694

 

 

 

 

Depreciation and amortization

 

 

75

 

 

 

62

 

Corporate general and administrative

 

 

16

 

 

 

17

 

Other

 

 

21

 

 

 

20

 

Total expenses

 

 

1,298

 

 

 

561

 

 

 

 

 

 

 

 

 

 

Gain on sales of assets, net

 

 

62

 

 

 

31

 

 

 

 

 

 

 

 

 

 

Operating (loss) income

 

 

(637

)

 

 

129

 

 

 

 

 

 

 

 

 

 

Interest income

 

 

1

 

 

 

1

 

Interest expense

 

 

(40

)

 

 

(32

)

Equity in (losses) earnings from investments in affiliates

 

 

(1

)

 

 

5

 

Loss on foreign currency transactions

 

 

(2

)

 

 

 

Other gain, net

 

 

 

 

 

1

 

 

 

 

 

 

 

 

 

 

(Loss) income before income taxes

 

 

(679

)

 

 

104

 

Income tax expense

 

 

(10

)

 

 

(7

)

Net (loss) income

 

 

(689

)

 

 

97

 

Net loss (income) attributable to noncontrolling interests

 

 

1

 

 

 

(1

)

Net (loss) income attributable to stockholders

 

$

(688

)

 

$

96

 

 

 

 

 

 

 

 

 

 

Other comprehensive (loss) income, net of tax expense:

 

 

 

 

 

 

 

 

Currency translation adjustment, net of tax expense of $0

 

 

(2

)

 

 

 

Total other comprehensive (loss) income

 

 

(2

)

 

 

 

 

 

 

 

 

 

 

 

 

Comprehensive (loss) income

 

 

(691

)

 

 

97

 

Comprehensive loss (income) attributable to noncontrolling interests

 

 

1

 

 

 

(1

)

Comprehensive (loss) income attributable to stockholders

 

$

(690

)

 

$

96

 

 

 

 

 

 

 

 

 

 

(Loss) Earnings per share:

 

 

 

 

 

 

 

 

(Loss) earnings per share - Basic

 

$

(2.89

)

 

$

0.48

 

(Loss) earnings per share - Diluted

 

$

(2.89

)

 

$

0.48

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding - Basic

 

 

238

 

 

 

201

 

Weighted average shares outstanding - Diluted

 

 

238

 

 

 

202

 

 

 

 

 

 

 

 

 

 

 

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)

 

 

 

Three Months Ended

 

 

 

March 31,

 

 

 

2020

 

 

2019

 

Operating Activities:

 

 

 

 

 

 

 

 

Net (loss) income

 

$

(689

)

 

$

97

 

Adjustments to reconcile net (loss) income to net cash provided by operating activities:

 

 

 

 

 

 

 

 

Depreciation and amortization

 

75

 

 

 

62

 

Gain on sales of assets, net

 

 

(62

)

 

 

(31

)

Impairment loss and casualty gain, net

 

 

694

 

 

 

 

Equity in (loss) earnings from investments in affiliates

 

 

1

 

 

 

(5

)

Loss on foreign currency transactions

 

 

2

 

 

 

 

Other gain, net

 

 

(1

)

 

 

(1

)

Share-based compensation expense

 

 

2

 

 

 

4

 

Amortization of deferred financing costs

 

 

1

 

 

 

1

 

Distributions from unconsolidated affiliates

 

 

4

 

 

 

6

 

Deferred income taxes

 

 

 

 

 

(1

)

Changes in operating assets and liabilities

 

 

(40

)

 

 

(60

)

Net cash (used in) provided by operating activities

 

 

(13

)

 

 

72

 

Investing Activities:

 

 

 

 

 

 

 

 

Capital expenditures for property and equipment

 

 

(26

)

 

 

(64

)

Proceeds from asset dispositions, net

 

 

205

 

 

 

65

 

Insurance proceeds for property damage claims

 

 

1

 

 

 

1

 

Net cash provided by investing activities

 

 

180

 

 

 

2

 

Financing Activities:

 

 

 

 

 

 

 

 

Borrowings under Revolver

 

 

1,000

 

 

 

 

Repayment of debt

 

 

(2

)

 

 

 

Dividends paid

 

 

(136

)

 

 

(201

)

Distributions to noncontrolling interests

 

 

(1

)

 

 

(3

)

Tax withholdings on share-based compensation

 

 

(6

)

 

 

(5

)

Repurchase of common stock

 

 

(66

)

 

 

 

Net cash provided by (used in) financing activities

 

 

789

 

 

 

(209

)

Effect of exchange rate changes on cash and cash equivalents and restricted cash

 

 

 

 

 

 

Net increase (decrease) in cash and cash equivalents and restricted cash

 

 

956

 

 

 

(135

)

Cash and cash equivalents and restricted cash, beginning of period

 

 

386

 

 

 

425

 

Cash and cash equivalents and restricted cash, end of period

 

$

1,342

 

 

$

290

 

 

 

 

 

 

 

 

 

 

Supplemental Disclosures

 

 

 

 

 

 

 

 

Non-cash financing activities:

 

 

 

 

 

 

 

 

Dividends declared but unpaid

 

$

106

 

 

$

90

 

 

 

Refer to the notes to the unaudited condensed consolidated financial statements.

 

 

4


 

PARK HOTELS & RESORTS INC.

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY

(unaudited, in millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Additional

 

 

 

 

 

 

Other

 

 

Non-

 

 

 

 

 

 

 

Common Stock

 

 

Paid-in

 

 

Retained

 

 

Comprehensive

 

 

controlling

 

 

 

 

 

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Earnings

 

 

(Loss) Income

 

 

Interests

 

 

Total

 

Balance as of December 31, 2019

 

 

239

 

 

$

2

 

 

$

4,575

 

 

$

1,922

 

 

$

(3

)

 

$

(45

)

 

$

6,451

 

Share-based compensation, net

 

 

 

 

 

 

 

 

(5

)

 

 

1

 

 

 

 

 

 

 

 

 

(4

)

Net loss

 

 

 

 

 

 

 

 

 

 

 

(688

)

 

 

 

 

 

(1

)

 

 

(689

)

Other comprehensive loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2

)

 

 

 

 

 

 

(2

)

Dividends and dividend equivalents(1)

 

 

 

 

 

 

 

 

 

 

 

(106

)

 

 

 

 

 

 

 

 

(106

)

Distributions to noncontrolling

    interests

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1

)

 

 

(1

)

Repurchase of common stock

 

 

(4

)

 

 

 

 

 

(66

)

 

 

 

 

 

 

 

 

 

 

 

(66

)

Balance as of March 31, 2020

 

 

235

 

 

$

2

 

 

$

4,504

 

 

$

1,129

 

 

$

(5

)

 

$

(47

)

 

$

5,583

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Additional

 

 

 

 

 

 

Other

 

 

Non-

 

 

 

 

 

 

 

Common Stock

 

 

Paid-in

 

 

Retained

 

 

Comprehensive

 

 

controlling

 

 

 

 

 

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Earnings

 

 

Loss

 

 

Interests

 

 

Total

 

Balance as of December 31, 2018

 

 

201

 

 

$

2

 

 

$

3,589

 

 

$

2,047

 

 

$

(6

)

 

$

(46

)

 

$

5,586

 

Share-based compensation, net

 

 

 

 

 

 

 

 

(1

)

 

 

 

 

 

 

 

 

 

 

 

(1

)

Net income

 

 

 

 

 

 

 

 

 

 

 

96

 

 

 

 

 

 

1

 

 

 

97

 

Dividends and dividend equivalents(1)

 

 

 

 

 

 

 

 

 

 

 

(91

)

 

 

 

 

 

 

 

 

(91

)

Distributions to noncontrolling

    interests

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(3

)

 

 

(3

)

Cumulative effect of change in

    accounting principle

 

 

 

 

 

 

 

 

 

 

 

(8

)

 

 

 

 

 

 

 

 

 

 

(8

)

Balance as of March 31, 2019

 

 

201