PLYA Stock Price Increases Over 10% Pre-Market: Why It Happened

By Amit Chowdhry ● March 5, 2021
  • The stock price of Playa Hotels & Resorts NV (NASDAQ: PLYA) has increased by over 10% pre-market. This is why it happened.

The stock price of Playa Hotels & Resorts NV (NASDAQ: PLYA) has increased by over 10% pre-market. Investors appear to be responding to the company announcing the results of operations for the three months and year ended December 31, 2020.

These are the highlights: 

Three Months Ended December 31, 2020 Results

– Net Loss was $73.8 million compared to a Net Loss of $17.9 million in 2019. Net Loss for the three months ended December 31, 2020 includes $13.3 million of goodwill and property and equipment impairment losses and a $1.1 million provision for doubtful accounts.

– Adjusted Net Loss was $58.4 million compared to an Adjusted Net Loss of $9.9 million in 2019.

– Owned Resort EBITDA decreased 117.2% over 2019 to $(4.9) million.

– Adjusted EBITDA decreased 169.8% over 2019 to $(14.0) million, which includes a $1.1 million provision for doubtful accounts.

Year Ended December 31, 2020 Results

– Net Loss was $262.4 million compared to Net Loss of $4.4 million in 2019. Net Loss for the year ended December 31, 2020 includes $55.6 million of goodwill and property and equipment impairment losses, a $2.0 million loss on sale of assets, a $3.1 million provision for doubtful accounts and a $3.0 million gain on insurance proceeds.

– Adjusted Net Loss(1) was $194.2 million compared to Adjusted Net Income of $8.7 million in 2019.

– Owned Resort EBITDA decreased 92.4% over 2019 to $14.1 million.

– Adjusted EBITDA decreased 114.1% over 2019 to $(21.2) million, which includes a $3.1 million provision for doubtful accounts.

KEY QUOTES:

“Though the COVID-19 pandemic caused unprecedented disruption for the travel industry over the past year, the strong improvement in demand into the holiday period in December really speaks to the pent-up demand following a year of restricted travel and stress for so many around the world. While Mexico continued to perform relatively well, I am highly encouraged by the pick-up in demand we saw in the Dominican Republic as additional flight capacity was added into the destination.

We continue to focus on areas within our control and took meaningful steps to enhance our liquidity position to be able to better weather what is likely to be a volatile transition year. Our recent primary equity offering, extension of our Revolving Credit Facility, and sale of non-core assets will surely help navigate the uncertainties presented by the new CDC travel guidelines in the near term. Our world class team at our resorts has shown remarkable flexibility over the past year as travel conditions have changed, all while remaining disciplined with respect to margins, resulting in our underlying December cash burn showing meaningful improvement as demand and ADR picked up sequentially. This was no easy task and I am incredibly proud and thankful for every associate in the Playa family.

This will likely be a transition year as vaccines are distributed and travel restrictions begin to ease as we move through the year. We are working diligently to rethink our operations from top to bottom to put us in a position to emerge as the clear market leader in all of our destinations as the pent-up demand returns.”

– Bruce D. Wardinski, Chairman and CEO of Playa Hotels & Resorts

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.