Ashford Inc (AINC) has reported a 72.83 percent plunge in profit for the quarter ended Dec. 31, 2016. The company has earned $0.73 million, or $0.25 a share in the quarter, compared with $2.68 million, or $0.23 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $3.84 million, or $1.69 a share compared with $4.02 million or $1.80 a share, a year ago. Revenue during the quarter grew 15.58 percent to $19.51 million from $16.88 million in the previous year period. Total expenses were 98.04 percent of quarterly revenues, up from 87.29 percent for the same period last year. That has resulted in a contraction of 1076 basis points in operating margin to 1.96 percent.
Operating income for the quarter was $0.38 million, compared with $2.15 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $4.06 million compared with $4.58 million in the prior year period. At the same time, adjusted EBITDA margin contracted 634 basis points in the quarter to 20.81 percent from 27.15 percent in the last year period.
“2016 was a strong year for Ashford, highlighted by solid operating performance, continued execution of our business plan and complementary investments in OpenKey,” commented Monty J. Bennett, Ashford’s chairman and ehief executive officer. “We enter 2017 with positive trends in the economy as well as the lodging sector and, given our strategy and our diversified portfolio, we believe Ashford and our advised platforms are well positioned for the coming year. We remain committed to opportunistically growing our business by accretively expanding our existing REIT platforms, adding additional investment platforms and continuing to explore opportunities for investments in other hospitality-related businesses.”
Working capital drops significantly
Ashford Inc has witnessed a decline in the working capital over the last year. It stood at $86.82 million as at Dec. 31, 2016, down 33.71 percent or $44.15 million from $130.97 million on Dec. 31, 2015. Current ratio was at 4.55 as on Dec. 31, 2016, down from 8.32 on Dec. 31, 2015.
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