0001604738falsetrue00016047382023-08-022023-08-020001604738us-gaap:CommonStockMember2023-08-022023-08-020001604738ainc:PreferredStockPurchaseRightMember2023-08-022023-08-02

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

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

Date of Report (date of earliest event reported): August 2, 2023

ASHFORD INC.
(Exact name of registrant as specified in its charter)

Nevada001-3640084-2331507
(State or other jurisdiction of incorporation
 or organization)
(Commission
File Number)
(IRS employer
identification number)
14185 Dallas Parkway
Suite 1200
Dallas
Texas75254
(Address of principal executive offices)(Zip code)

Registrant’s telephone number, including area code: (972490-9600
Not Applicable
(Former name or former address, if changed since last report)

Check the appropriate box if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
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.
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading SymbolName of each exchange on which registered
Common StockAINCNYSE American LLC
Preferred Stock Purchase RightsNYSE American LLC



ITEM 2.02  RESULTS OF OPERATIONS AND FINANCIAL CONDITION.

On August 2, 2023, Ashford Inc. (the “Company”) issued a press release announcing its financial results for the second quarter ended June 30, 2023. A copy of the press release is attached hereto as Exhibit 99.1.

The information in this Form 8-K and Exhibits attached hereto shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, except as shall be expressly set forth by specific reference in such filing.

ITEM 9.01  FINANCIAL STATEMENTS AND EXHIBITS.

(d)    Exhibits
Exhibit Number Description
99.1 
104Cover Page Interactive Data File (formatted in Inline XBRL and contained in Exhibit 101).
2



SIGNATURE
 
Pursuant to the requirements of Section 12 of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Dated: August 2, 2023
 
  
 ASHFORD INC.
  
 By:/s/ DERIC S. EUBANKS
 Deric S. Eubanks
 Chief Financial Officer

3

EXHIBIT 99.1

ashfordk150dpa08a.jpg
NEWS RELEASE
Contact:Deric EubanksJordan JenningsJoe Calabrese
Chief Financial OfficerInvestor RelationsFinancial Relations Board
(972) 490-9600(972) 778-9487(212) 827-3772


ASHFORD REPORTS SECOND QUARTER 2023 RESULTS
DALLAS, August 2, 2023 - Ashford Inc., an alternative asset management company with a portfolio of strategic operating businesses (NYSE American: AINC) (“Ashford” or the “Company”), today reported the following results and performance measures for the second quarter ended June 30, 2023. Unless otherwise stated, all reported results compare the second quarter ended June 30, 2023, with the second quarter ended June 30, 2022 (see discussion below). The reconciliation of non-GAAP financial measures is included in the financial tables accompanying this press release.
STRATEGIC OVERVIEW
High-growth, fee-based business model
Diversified platform of multiple fee generators
Three paths to growth:
Increase assets under management (AUM);
Growth of third-party business; and
Acquisition or incubation of additional businesses
Highly-aligned management team with superior long-term track record
Leader in asset and investment management for the real estate & hospitality sectors

SECOND QUARTER 2023 FINANCIAL HIGHLIGHTS
Net loss attributable to common stockholders for the quarter was $(7.5) million, or $(2.56) per diluted share. Adjusted net income for the quarter was $12.7 million, or $1.57 per diluted share.
Total revenue, excluding cost reimbursement revenue, for the quarter was $87.8 million, reflecting a 12.3% growth rate over the prior year quarter.
Total Advisory Fee revenue from Braemar Hotels & Resorts Inc. (“Braemar”) (NYSE: BHR) in the second quarter increased 15.1% over the prior year quarter.
Adjusted EBITDA for the quarter was $17.8 million.
At the end of the second quarter, the Company had approximately $7.9 billion of gross assets under management.
As of June 30, 2023, the Company had corporate cash of approximately $21.9 million.

ASHFORD SECURITIES UPDATE
Ashford Securities is a dedicated capital raising platform created to fund investment opportunities sponsored and asset-managed by Ashford. Ashford Securities recently completed the offering of a non-traded preferred equity security for Braemar placing approximately $460 million. Ashford Securities currently has two offerings in the market: (1) a non-traded preferred equity security for Ashford Hospitality Trust, Inc. (“Ashford Trust”) (NYSE: AHT) and (2) a growth oriented private offering targeting investments in all types of commercial real estate in the state of Texas.



Ashford Reports Second Quarter Results
Page 2
August 2, 2023



Ashford Trust has issued $50.6 million of its Series J and Series K Redeemable Preferred Stock through Ashford Securities since the offering commenced, including $27.7 million during the quarter. In connection with the Ashford Trust offering of Series J & K Redeemable Preferred Stock, Ashford Securities has assembled a syndicate of 35 broker-dealers and RIA firms.
During the quarter, Ashford Securities passed $500 million in cumulative gross capital raised, including $42.1 million from institutions, in less than two years of serving investors via the independent broker-dealer and RIA distribution channels.
Long term, the Company believes there is a substantial opportunity to grow its assets under management by offering differentiated alternative investment products through Ashford Securities to help investors further diversify their portfolios.
REMINGTON UPDATE
Remington’s high-margin, low-capex Hotel Management business continues to benefit from the recovery in the lodging industry and has experienced significant growth in its third-party business. In the second quarter, Remington generated hotel management fee revenue of $14.9 million, Net Income Attributable to the Company of $2.8 million, and Adjusted EBITDA of $6.7 million.
Remington continues to focus on growing its mix of third-party managed hotels, which currently account for approximately 39% of Remington’s managed hotels. At the end of the second quarter, Remington managed 120 properties that were open and operating – 47 under third-party management agreements and 73 for Ashford Trust and Braemar – located in 26 states and Washington, D.C. across 25 brands, including 15 independent and boutique properties.
INSPIRE UPDATE
INSPIRE is an event technology company that provides an integrated suite of audio-visual services, including show and event services, hospitality services, and creative services, making it a leading single-source solution for its clients’ meeting and event needs. INSPIRE has seen its hospitality business rebound very strongly over the past three quarters as both corporate and social groups have been eager to gather. It has seen a similar recovery in its show services segment. In the second quarter, INSPIRE had audio visual revenue of $41.3 million, Net Income Attributable to the Company of $1.3 million, and Adjusted EBITDA of $5.1 million. Second quarter revenue growth was 15% over the prior year quarter.
PREMIER UPDATE
Premier provides comprehensive and cost-effective architecture, design, development, and project management services. It also provides project oversight, coordination, planning, and execution of renovation, capital expenditure and ground-up development projects. Premier is responsible for managing and implementing substantially all capital improvements at Ashford Trust and Braemar hotels. Additionally, it has extensive experience working with major hotel brands in renovating, converting, developing and repositioning hotels. Similar to Remington, Premier has also made a concerted effort to grow its third-party business, and through the end of the second quarter, Premier had signed 76 third-party engagements, totaling $20.4 million in expected fees. In the second quarter, Premier generated $7.6 million of design and construction fee revenue, Net Loss Attributable to the Company of $(0.5) million, and Adjusted EBITDA of $2.3 million.



Ashford Reports Second Quarter Results
Page 3
August 2, 2023



RED HOSPITALITY & LEISURE UPDATE
RED Hospitality is a leading provider of watersports activities and other travel and transportation services in the U.S. Virgin Islands (“USVI”), Puerto Rico, Florida and Turks & Caicos. RED Hospitality has continued to benefit from the resurgence in leisure travel and the desire of consumers for unique and memorable experiences. RED Hospitality has several opportunities for expansion into additional Ashford-advised and third-party hotels in the USVI, elsewhere in the Caribbean, and in U.S. coastal markets. During the second quarter, RED Hospitality generated $9.8 million of revenue, Net Income Attributable to the Company of $0.7 million, and $2.3 million of Adjusted EBITDA.

As previously announced, during the first quarter 2023, RED Hospitality acquired privately-held Alii Nui and Maui Dive Shop, Maui’s premier luxury catamaran and diving operation. RED intends to expand the Alii Nui fleet in 2023 with an additional vessel, and the acquisition follows RED’s proven track record of successfully acquiring and expanding high-quality providers in niche, high-barrier, luxury markets. The transaction also expanded RED’s geographic footprint into the premier Maui market and geographically diversifies its revenue stream. By establishing a foothold in this coveted market, RED is well-positioned to continue to grow its business in Hawaii.
FINANCIAL RESULTS
Net loss attributable to common stockholders for the quarter totaled $(7.5) million, or $(2.56) per diluted share. Adjusted net income for the quarter was $12.7 million, or $1.57 per diluted share.
For the quarter ended June 20, 2023, base advisory fee revenue was $11.9 million. The base advisory fee revenue in the second quarter was comprised of $8.3 million from Ashford Trust and $3.7 million from Braemar.
Adjusted EBITDA for the quarter was $17.8 million.
CAPITAL STRUCTURE
At the end of the second quarter, the Company had approximately $7.9 billion of gross assets under management from its advised platforms. The Company had corporate cash of $21.9 million and 8.0 million fully diluted shares. The Company’s fully diluted shares include 4.2 million common shares associated with its Series D convertible preferred stock. The Company had $122.4 million of loans as of June 30, 2023.
QUARTERLY HIGHLIGHTS FOR ADVISED PLATFORMS
ASHFORD TRUST HIGHLIGHTS
Reported Adjusted EBITDAre of $104.0 million for the second quarter.
Second quarter Comparable RevPAR increased 6.7% over the prior year quarter.
To date, Ashford Trust has issued approximately $50.6 million of its non-traded preferred stock.
BRAEMAR HOTELS & RESORTS HIGHLIGHTS
Reported Adjusted EBITDAre of $46.3 million for the second quarter.
Second quarter Comparable RevPAR was $309.
Subsequent to the end of the quarter, Braemar completed a $200 million corporate financing consisting of a $150 million term loan and a $50 million credit facility.




Ashford Reports Second Quarter Results
Page 4
August 2, 2023



“The lodging industry is stabilizing as corporate and group business continues to grow and the leisure segment modestly softens after the 2022 surge,” commented Monty J. Bennett, Ashford’s Chairman and Chief Executive Officer. “We’re also very pleased to report that Ashford Securities has reached a milestone of $500 million of cumulative capital raised, and we are excited about the future prospects for Ashford Securities to help us grow our assets under management.”
Mr. Bennett concluded, “Moving forward, we will continue to focus on growing our third-party business for our portfolio companies and growing our assets under management at our advised platforms.”

INVESTOR CONFERENCE CALL AND SIMULCAST
The Company will conduct a conference call on Thursday, August 3, 2023, at 1:00 p.m. ET. The number to call for this interactive teleconference is (201) 689-8263. A replay of the conference call will be available through Thursday, August 10, 2023, by dialing (412) 317-6671 and entering the confirmation number, 13739431.
The Company will also provide an online simulcast and rebroadcast of its second quarter 2023 earnings release conference call. The live broadcast of the Company’s quarterly conference call will be available online at the Company’s website, www.ashfordinc.com, on Thursday, August 3, 2023, beginning at 1:00 p.m. ET. The online replay will follow shortly after the call and continue for approximately one year.
Included in this press release are certain supplemental measures of performance, which are not measures of operating performance under GAAP, to assist investors in evaluating the Company’s historical or future financial performance. These supplemental measures include adjusted earnings before interest, tax, depreciation and amortization (“Adjusted EBITDA”) and Adjusted Net Income. We believe that Adjusted EBITDA and Adjusted Net Income provide investors and management with a meaningful indicator of operating performance. Management also uses Adjusted EBITDA and Adjusted Net Income, among other measures, to evaluate profitability. We calculate Adjusted EBITDA by subtracting or adding to net income (loss): interest expense, income taxes, depreciation, amortization, net income (loss) to noncontrolling interests, transaction costs, and other expenses. We calculate Adjusted Net Income by subtracting or adding to net income (loss): net income (loss) to noncontrolling interests, transaction costs, and other expenses. Our methodology for calculating Adjusted EBITDA and Adjusted Net Income may differ from the methodologies used by other comparable companies, when calculating the same or similar supplemental financial measures and may not be comparable with these companies. Neither Adjusted EBITDA nor Adjusted Net Income represents cash generated from operating activities as determined by GAAP and should not be considered as an alternative to (a) GAAP net income (loss) as an indication of our financial performance or (b) GAAP cash flows from operating activities as a measure of our liquidity nor are such measures indicative of funds available to satisfy our cash needs. The Company urges investors to carefully review the U.S. GAAP financial information as shown in our periodic reports on Form 10-Q and Form 10-K, as amended and our Current Reports on Form 8-K.
This press release does not constitute an offer to sell or a solicitation of an offer to buy any securities.  Securities will be offered only by means of a registration statement and prospectus which can be found at www.sec.gov.  
* * * * *



Ashford Reports Second Quarter Results
Page 5
August 2, 2023



Ashford is an alternative asset management company with a portfolio of strategic operating businesses that provides global asset management, investment management and related services to the real estate and hospitality sectors.
Certain statements and assumptions in this press release contain or are based upon “forward-looking” information and are being made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements in this press release include, among others, statements about the Company’s strategy and future plans. These forward-looking statements are subject to risks and uncertainties. When we use the words “will likely result,” “may,” “anticipate,” “estimate,” “should,” “expect,” “believe,” “intend,” or similar expressions, we intend to identify forward-looking statements. Such statements are subject to numerous assumptions and uncertainties, many of which are outside Ashford Inc.’s control.
These forward-looking statements are subject to known and unknown risks and uncertainties, which could cause actual results to differ materially from those anticipated, including, without limitation: our ability to maintain compliance with NYSE American LLC continued listing standards; our ability to regain Form S-3 eligibility; our ability to repay, refinance or restructure our debt and the debt of certain of our subsidiaries; anticipated or expected purchases or sales of assets; our projected operating results; completion of any pending transactions; our understanding of our competition; market trends; projected capital expenditures; the impact of technology on our operations and business; general volatility of the capital markets and the market price of our common stock and preferred stock; availability, terms and deployment of capital; availability of qualified personnel; changes in our industry and the markets in which we operate, interest rates or the general economy; and the degree and nature of our competition. These and other risk factors are more fully discussed in the Company’s filings with the Securities and Exchange Commission.
The forward-looking statements included in this press release are only made as of the date of this press release. Such forward-looking statements are based on our beliefs, assumptions, and expectations of our future performance taking into account all information currently known to us. These beliefs, assumptions, and expectations can change as a result of many potential events or factors, not all of which are known to us. If a change occurs, our business, financial condition, liquidity, results of operations, plans, and other objectives may vary materially from those expressed in our forward-looking statements. You should carefully consider this risk when you make an investment decision concerning our securities. Investors should not place undue reliance on these forward-looking statements. The Company can give no assurance that these forward-looking statements will be attained or that any deviation will not occur. We are not obligated to publicly update or revise any forward-looking statements, whether as a result of new information, future events or circumstances, changes in expectations, or otherwise, except to the extent required by law.











ASHFORD INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(unaudited, in thousands, except share and per share amounts)
June 30, 2023December 31, 2022
ASSETS
Current assets:
Cash and cash equivalents$32,505 $44,390 
Restricted cash36,108 37,058 
Restricted investment224 303 
Accounts receivable, net of allowance of $1,180 and $175, respectively
22,880 17,615 
Due from affiliates220 463 
Due from Ashford Trust7,412 — 
Due from Braemar2,058 11,828 
Inventories2,503 2,143 
Prepaid expenses and other15,126 11,226 
Total current assets119,036 125,026 
Investments in unconsolidated entities3,369 4,217 
Property and equipment, net52,438 41,791 
Operating lease right-of-use assets21,054 23,844 
Goodwill59,446 58,675 
Intangible assets, net222,274 226,544 
Other assets, net1,094 2,259 
Total assets$478,711 $482,356 
LIABILITIES
Current liabilities:
Accounts payable and accrued expenses$38,320 $56,079 
Dividends payable27,964 27,285 
Due to affiliates33 15 
Due to Ashford Trust— 1,197 
Deferred income881 444 
Notes payable, net3,690 5,195 
Finance lease liabilities403 1,456 
Operating lease liabilities3,829 3,868 
Claims liabilities and other32,317 25,630 
Total current liabilities107,437 121,169 
Deferred income8,138 7,356 
Deferred tax liability, net26,562 27,873 
Deferred compensation plan2,060 2,849 
Notes payable, net114,485 89,680 
Finance lease liabilities2,957 1,962 
Operating lease liabilities19,323 20,082 
Other liabilities4,373 3,237 
Total liabilities285,335 274,208 
MEZZANINE EQUITY
Series D Convertible Preferred Stock, $0.001 par value, 19,120,000 shares issued and outstanding as of June 30, 2023 and December 31, 2022
478,000 478,000 
Redeemable noncontrolling interests1,726 1,614 
EQUITY (DEFICIT)
Common stock, 100,000,000 shares authorized, $0.001 par value, 3,317,321 and 3,181,585 shares issued and 3,214,457 and 3,110,044 shares outstanding at June 30, 2023 and December 31, 2022, respectively
Additional paid-in capital299,039 297,715 
Accumulated deficit(583,673)(568,482)
Accumulated other comprehensive income (loss)(59)78 
Treasury stock, at cost, 102,864 and 71,541 shares at June 30, 2023 and December 31, 2022, respectively
(1,324)(947)
Total equity (deficit) of the Company(286,014)(271,633)
Noncontrolling interests in consolidated entities(336)167 
Total equity (deficit)(286,350)(271,466)
Total liabilities, mezzanine equity and equity (deficit)$478,711 $482,356 
6









ASHFORD INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited, in thousands, except per share amounts)
Three Months EndedSix Months Ended
June 30,June 30,
 2023202220232022
REVENUE 
Advisory services fees:
Base advisory fees$11,917 $11,839 $24,025 $23,513 
Incentive advisory fees67 — 134 — 
Other advisory revenue130 130 258 258 
Hotel management fees:
Base management fees10,388 9,484 19,398 15,658 
Incentive management fees2,059 2,867 3,041 3,871 
Other management fees2,431 1,069 4,626 1,069 
Design and construction fees7,605 4,738 14,534 9,262 
Audio visual 41,349 35,977 81,706 60,942 
Other11,808 12,072 20,882 23,511 
Cost reimbursement revenue104,956 89,277 209,228 163,328 
Total revenues192,710 167,453 377,832 301,412 
EXPENSES
Salaries and benefits22,155 16,086 44,459 32,232 
Stock/unit-based compensation991 920 1,480 1,670 
Cost of revenues for design and construction3,589 2,206 6,455 4,116 
Cost of revenues for audio visual 29,993 23,279 57,821 41,158 
Depreciation and amortization6,990 8,019 13,990 15,644 
General and administrative11,830 9,770 21,522 17,082 
Other5,684 5,669 11,786 11,136 
Reimbursed expenses104,956 89,181 209,154 163,089 
Total operating expenses186,188 155,130 366,667 286,127 
OPERATING INCOME (LOSS)6,522 12,323 11,165 15,285 
Equity in earnings (loss) of unconsolidated entities(388)67 (847)257 
Interest expense(3,422)(2,536)(6,259)(3,815)
Amortization of loan costs(265)(232)(506)(305)
Interest income440 38 717 119 
Realized gain (loss) on investments— — (80)(71)
Other income (expense)(159)(259)334 (112)
INCOME (LOSS) BEFORE INCOME TAXES2,728 9,401 4,524 11,358 
Income tax (expense) benefit(1,227)(4,076)(1,847)(5,354)
NET INCOME (LOSS)1,501 5,325 2,677 6,004 
(Income) loss from consolidated entities attributable to noncontrolling interests214 298 502 558 
Net (income) loss attributable to redeemable noncontrolling interests(133)(141)(288)(132)
NET INCOME (LOSS) ATTRIBUTABLE TO THE COMPANY1,582 5,482 2,891 6,430 
Preferred dividends, declared and undeclared(9,044)(9,020)(18,078)(18,393)
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS$(7,462)$(3,538)$(15,187)$(11,963)
INCOME (LOSS) PER SHARE - BASIC AND DILUTED
Basic:
Net income (loss) attributable to common stockholders$(2.41)$(1.21)$(5.00)$(4.11)
Weighted average common shares outstanding - basic3,092 2,913 3,039 2,908 
Diluted:
Net income (loss) attributable to common stockholders$(2.56)$(1.34)$(5.10)$(4.15)
Weighted average common shares outstanding - diluted3,334 3,109 3,137 3,006 

7









ASHFORD INC. AND SUBSIDIARIES
RECONCILIATION OF NET INCOME (LOSS) TO EBITDA AND ADJUSTED EBITDA
(unaudited, in thousands)
 Three Months EndedSix Months Ended
June 30,June 30,
 2023202220232022
Net income (loss)$1,501 $5,325 $2,677 $6,004 
(Income) loss from consolidated entities attributable to noncontrolling interests214 298 502 558 
Net (income) loss attributable to redeemable noncontrolling interests(133)(141)(288)(132)
Net income (loss) attributable to the company1,582 5,482 2,891 6,430 
Interest expense3,422 2,537 6,257 3,816 
Amortization of loan costs264 232 505 305 
Depreciation and amortization8,692 9,297 17,224 18,179 
Income tax expense (benefit)1,227 4,076 1,847 5,354 
Net income (loss) attributable to unitholders redeemable noncontrolling interests133 141 288 132 
EBITDA15,320 21,765 29,012 34,216 
Deferred compensation plans(570)(600)(790)(489)
Stock/unit-based compensation992 920 1,479 1,751 
Change in contingent consideration fair value(480)— 300 — 
Transaction costs419 1,308 622 1,837 
Loss on disposal of assets10 1,019 764 
Reimbursed software costs, net— (94)(74)(237)
Legal, advisory and settlement costs635 751 926 863 
Severance and executive recruiting costs1,133 368 2,276 728 
Amortization of hotel signing fees and lock subsidies305 199 545 351 
Other (gain) loss72 291 125 129 
Adjusted EBITDA$17,828 $24,918 $35,440 $39,913 

8









ASHFORD INC. AND SUBSIDIARIES
RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED NET INCOME (LOSS)
(unaudited, in thousands, except per share amounts)
 Three Months EndedSix Months Ended
June 30,June 30,
2023202220232022
Net income (loss)$1,501 $5,325 $2,677 $6,004 
(Income) loss from consolidated entities attributable to noncontrolling interests214 298 502 558 
Net (income) loss attributable to redeemable noncontrolling interests(133)(141)(288)(132)
Preferred dividends, declared and undeclared(9,044)(9,020)(18,078)(18,393)
Net income (loss) attributable to common stockholders(7,462)(3,538)(15,187)(11,963)
Amortization of loan costs264 232 505 305 
Depreciation and amortization8,692 9,297 17,224 18,179 
Net income (loss) attributable to unitholders redeemable noncontrolling interests133 141 288 132 
Preferred dividends, declared and undeclared9,044 9,020 18,078 18,393 
Deferred compensation plans(570)(600)(790)(489)
Stock/unit-based compensation992 920 1,479 1,751 
Change in contingent consideration fair value(480)— 300 — 
Transaction costs419 1,308 622 1,837 
Loss on disposal of assets10 1,019 764 
Non-cash interest from finance lease— 185 — 327 
Reimbursed software costs, net— (94)(74)(237)
Legal, advisory and settlement costs635 751 926 863 
Severance and executive recruiting costs1,133 368 2,276 728 
Amortization of hotel signing fees and lock subsidies305 199 545 351 
Other (gain) loss72 291 125 129 
GAAP income tax expense (benefit)1,227 4,076 1,847 5,354 
Adjusted income tax (expense) benefit (1)
(1,750)(5,152)(3,157)(7,768)
Adjusted net income available to common stockholders, unitholders and Series D convertible preferred stockholders on an "as converted" basis$12,656 $17,414 $26,026 $28,656 
Adjusted net income per diluted share available to common stockholders, unitholders and Series D convertible preferred stockholders on an "as converted" basis$1.57 $2.23 $3.24 $3.73 
Weighted average diluted shares8,043 7,820 8,021 7,674 
Components of weighted average diluted shares
Common shares3,092 2,913 3,039 2,908 
Series D convertible preferred stock4,229 4,218 4,228 4,216 
Deferred compensation plan212 203 210 202 
Acquisition related shares403 331 428 217 
Restricted shares and units107 155 116 131 
Weighted average diluted shares8,043 7,820 8,021 7,674 
Reconciliation of income tax expense (benefit) to adjusted income tax (expense) benefit
GAAP income tax (expense) benefit$(1,227)$(4,076)$(1,847)$(5,354)
Less deferred income tax (expense) benefit523 1,076 1,310 2,414 
Adjusted income tax (expense) benefit (1)
$(1,750)$(5,152)$(3,157)$(7,768)
(1) Income tax expense (benefit) is adjusted to exclude the effects of deferred income tax expense (benefit) because current income tax expense (benefit) (i) provides a more accurate period-over-period comparison of the ongoing operating performance of our advisory and products and services businesses, and (ii) provides more useful information to investors regarding our economic performance. See Note 18 to our consolidated financial statements in our Annual Report on Form 10-K for the year ended December 31, 2022.
9


ASHFORD INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS AND
RECONCILIATION OF NET INCOME (LOSS) TO EBITDA, ADJUSTED EBITDA AND ADJUSTED NET INCOME (LOSS) BY SEGMENT
(unaudited, in thousands, except per share amounts)
Three Months Ended June 30, 2023Three Months Ended June 30, 2022
REIT AdvisoryProducts & ServicesCorporate/ OtherAshford Inc. ConsolidatedREIT AdvisoryProducts & ServicesCorporate/ OtherAshford Inc. Consolidated
REVENUE
Advisory services fees:
Base advisory fees - Trust$8,250 $— $— $8,250 $8,612 $— $— $8,612 
Base advisory fees - Braemar3,667 — — 3,667 3,227 — — 3,227 
Incentive advisory fees - Braemar67 — — 67 — — — — 
Other advisory revenue - Braemar130 — — 130 130 — — 130 
Hotel management fees:
Base management fees— 10,388 — 10,388 — 9,484 — 9,484 
Incentive management fees— 2,059 — 2,059 — 2,867 — 2,867 
Other management fees— 2,431 — 2,431 — 1,069 — 1,069 
Design and construction fees— 7,605 — 7,605 — 4,738 — 4,738 
Audio visual— 41,349 — 41,349 — 35,977 — 35,977 
Other53 11,755 — 11,808 — 12,072 — 12,072 
Cost reimbursement revenue8,130 94,173 2,653 104,956 7,252 79,774 2,251 89,277 
Total revenues20,297 169,760 2,653 192,710 19,221 145,981 2,251 167,453 
EXPENSES
Salaries and benefits— 13,291 9,434 22,725 — 9,736 6,950 16,686 
Deferred compensation plans— 10 (580)(570)— 19 (619)(600)
Stock/unit-based compensation— 38 953 991 — 78 842 920 
Cost of audio visual revenues— 29,993 — 29,993 — 23,279 — 23,279 
Cost of design and construction revenues— 3,589 — 3,589 — 2,206 — 2,206 
Depreciation and amortization369 6,593 28 6,990 852 7,102 65 8,019 
General and administrative— 8,687 3,143 11,830 — 6,529 3,241 9,770 
Other— 5,684 — 5,684 — 5,669 — 5,669 
Reimbursed expenses4,670 94,130 2,653 101,453 3,070 79,711 2,251 85,032 
REIT stock/unit-based compensation3,460 43 — 3,503 4,086 63 — 4,149 
Total operating expenses8,499 162,058 15,631 186,188 8,008 134,392 12,730 155,130 
OPERATING INCOME (LOSS)11,798 7,702 (12,978)6,522 11,213 11,589 (10,479)12,323 
Other— (1,358)(2,436)(3,794)— (1,217)(1,705)(2,922)
INCOME (LOSS) BEFORE INCOME TAXES11,798 6,344 (15,414)2,728 11,213 10,372 (12,184)9,401 
Income tax (expense) benefit(2,902)(2,267)3,942 (1,227)(2,896)(3,893)2,713 (4,076)
NET INCOME (LOSS)8,896 4,077 (11,472)1,501 8,317 6,479 (9,471)5,325 
(Income) loss from consolidated entities attributable to noncontrolling interests— 214 — 214 — 298 — 298 
Net (income) loss attributable to redeemable noncontrolling interests— — (133)(133)— — (141)(141)
NET INCOME (LOSS) ATTRIBUTABLE TO THE COMPANY8,896 4,291 (11,605)1,582 8,317 6,777 (9,612)5,482 
Preferred dividends, declared and undeclared— — (9,044)(9,044)— — (9,020)(9,020)
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS$8,896 $4,291 $(20,649)$(7,462)$8,317 $6,777 $(18,632)$(3,538)
(Continued)
10


ASHFORD INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS AND
RECONCILIATION OF NET INCOME (LOSS) TO EBITDA, ADJUSTED EBITDA AND ADJUSTED NET INCOME (LOSS) BY SEGMENT
(unaudited, in thousands, except per share amounts) (continued)
Three Months Ended June 30, 2023Three Months Ended June 30, 2022
REIT AdvisoryProducts & ServicesCorporate/ OtherAshford Inc. ConsolidatedREIT AdvisoryProducts & ServicesCorporate/ OtherAshford Inc. Consolidated
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS$8,896 $4,291 $(20,649)$(7,462)$8,317 $6,777 $(18,632)$(3,538)
Preferred dividends, declared and undeclared— — 9,044 9,044 — — 9,020 9,020 
NET INCOME (LOSS) ATTRIBUTABLE TO THE COMPANY8,896 4,291 (11,605)1,582 8,317 6,777 (9,612)5,482 
Interest expense— 798 2,624 3,422 — 1,087 1,450 2,537 
Amortization of loan costs— 52 212 264 — 51 181 232 
Depreciation and amortization369 8,295 28 8,692 852 8,380 65 9,297 
Income tax expense (benefit)2,902 2,267 (3,942)1,227 2,896 3,893 (2,713)4,076 
Net income (loss) attributable to unitholders redeemable noncontrolling interests— — 133 133 — — 141 141 
EBITDA12,167 15,703 (12,550)15,320 12,065 20,188 (10,488)21,765 
Deferred compensation plans— 10 (580)(570)— 19 (619)(600)
Stock/unit-based compensation— 39 953 992 — 78 842 920 
Change in contingent consideration fair value— (480)— (480)— — — — 
Transaction costs— 261 158 419 — 771 537 1,308 
Loss on disposal of assets— — — 10 — 10 
Reimbursed software costs, net— — — — (94)— — (94)
Legal, advisory and settlement costs— 372 263 635 — 742 751 
Severance and executive recruiting costs— 92 1,041 1,133 — 78 290 368 
Amortization of hotel signing fees and lock subsidies— 305 — 305 — 199 — 199 
Other (gain) loss— 58 14 72 — 204 87 291 
Adjusted EBITDA12,167 16,362 (10,701)17,828 11,971 21,556 (8,609)24,918 
Interest expense— (798)(2,624)(3,422)— (1,087)(1,450)(2,537)
Non-cash interest from finance lease— — — — — 185 — 185 
Adjusted income tax (expense) benefit(2,611)(3,644)4,505 (1,750)(3,247)(4,630)2,725 (5,152)
Adjusted net income (loss) available to common stockholders, unitholders and Series D convertible preferred stockholders on an "as converted" basis$9,556 $11,920 $(8,820)$12,656 $8,724 $16,024 $(7,334)$17,414 
INCOME (LOSS) PER SHARE - DILUTED
Net income (loss) per diluted share attributable to common stockholders (1)
$2.67 $1.14 $(6.37)$(2.56)$2.68 $2.18 $(6.19)$(1.34)
Weighted average common shares outstanding - diluted3,334 3,334 3,334 3,334 3,109 3,109 3,109 3,109 
ADJUSTED INCOME (LOSS) PER SHARE - DILUTED
Adjusted net income (loss) per diluted share available to common stockholders, unitholders and Series D convertible preferred stockholders on an "as converted" basis (1)
$1.19 $1.48 $(1.10)$1.57 $1.12 $2.05 $(0.94)$2.23 
Weighted average diluted shares8,043 8,043 8,043 8,043 7,820 7,820 7,820 7,820 
(1) The sum of net income (loss) per diluted share and adjusted net income (loss) per diluted share, as calculated for the segments, may differ from the consolidated total due to rounding.
11


ASHFORD INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS AND
RECONCILIATION OF NET INCOME (LOSS) TO EBITDA, ADJUSTED EBITDA AND ADJUSTED NET INCOME (LOSS) BY SEGMENT
(unaudited, in thousands, except per share amounts)
Six Months Ended June 30, 2023Six Months Ended June 30, 2022
REIT AdvisoryProducts & ServicesCorporate/ OtherAshford Inc. ConsolidatedREIT AdvisoryProducts & ServicesCorporate/ OtherAshford Inc. Consolidated
REVENUE
Advisory services fees:
Base advisory fees - Trust$16,718 $— $— $16,718 $17,347 $— $— $17,347 
Base advisory fees - Braemar7,307 — — 7,307 6,166 — — 6,166 
Incentive advisory fees - Braemar134 — — 134 — — — — 
Other advisory revenue - Braemar258 — — 258 258 — — 258 
Hotel management fees:
Base management fees— 19,398 — 19,398 — 15,658 — 15,658 
Incentive management fees— 3,041 — 3,041 — 3,871 — 3,871 
Other management fees— 4,626 — 4,626 — 1,069 — 1,069 
Design and construction fees— 14,534 — 14,534 — 9,262 — 9,262 
Audio visual— 81,706 — 81,706 — 60,942 — 60,942 
Other180 20,702 — 20,882 15 23,496 — 23,511 
Cost reimbursement revenue16,581 186,367 6,280 209,228 14,828 144,687 3,813 163,328 
Total revenues41,178 330,374 6,280 377,832 38,614 258,985 3,813 301,412 
EXPENSES
Salaries and benefits— 26,180 19,069 45,249 — 17,686 15,035 32,721 
Deferred compensation plans— 23 (813)(790)— 36 (525)(489)
Stock/unit-based compensation— 108 1,372 1,480 — 177 1,493 1,670 
Cost of audio visual revenues— 57,821 — 57,821 — 41,158 — 41,158 
Cost of design and construction revenues— 6,455 — 6,455 — 4,116 — 4,116 
Depreciation and amortization885 13,005 100 13,990 1,705 13,669 270 15,644 
General and administrative— 16,588 4,934 21,522 — 11,735 5,347 17,082 
Other1,032 10,754 — 11,786 706 10,400 30 11,136 
Reimbursed expenses9,470 186,266 6,280 202,016 6,263 144,535 3,813 154,611 
REIT stock/unit-based compensation7,037 101 — 7,138 8,326 152 — 8,478 
Total operating expenses18,424 317,301 30,942 366,667 17,000 243,664 25,463 286,127 
OPERATING INCOME (LOSS)22,754 13,073 (24,662)11,165 21,614 15,321 (21,650)15,285 
Other— (1,976)(4,665)(6,641)— (1,948)(1,979)(3,927)
INCOME (LOSS) BEFORE INCOME TAXES22,754 11,097 (29,327)4,524 21,614 13,373 (23,629)11,358 
Income tax (expense) benefit(5,464)(5,111)8,728 (1,847)(5,347)(5,576)5,569 (5,354)
NET INCOME (LOSS)17,290 5,986 (20,599)2,677 16,267 7,797 (18,060)6,004 
(Income) loss from consolidated entities attributable to noncontrolling interests— 502 — 502 — 558 — 558 
Net (income) loss attributable to redeemable noncontrolling interests— — (288)(288)— — (132)(132)
NET INCOME (LOSS) ATTRIBUTABLE TO THE COMPANY17,290 6,488 (20,887)2,891 16,267 8,355 (18,192)6,430 
Preferred dividends, declared and undeclared— — (18,078)(18,078)— — (18,393)(18,393)
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS$17,290 $6,488 $(38,965)$(15,187)$16,267 $8,355 $(36,585)$(11,963)
(Continued)
12


ASHFORD INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS AND
RECONCILIATION OF NET INCOME (LOSS) TO EBITDA, ADJUSTED EBITDA AND ADJUSTED NET INCOME (LOSS) BY SEGMENT
(unaudited, in thousands, except per share amounts) (continued)
Six Months Ended June 30, 2023Six Months Ended June 30, 2022
REIT AdvisoryProducts & ServicesCorporate/ OtherAshford Inc. ConsolidatedREIT AdvisoryProducts & ServicesCorporate/ OtherAshford Inc. Consolidated
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS$17,290 $6,488 $(38,965)$(15,187)$16,267 $8,355 $(36,585)$(11,963)
Preferred dividends, declared and undeclared— — 18,078 18,078 — — 18,393 18,393 
NET INCOME (LOSS) ATTRIBUTABLE TO THE COMPANY17,290 6,488 (20,887)2,891 16,267 8,355 (18,192)6,430 
Interest expense— 1,373 4,884 6,257 — 2,116 1,700 3,816 
Amortization of loan costs— 98 407 505 — 102 203 305 
Depreciation and amortization885 16,239 100 17,224 1,705 16,204 270 18,179 
Income tax expense (benefit)5,464 5,111 (8,728)1,847 5,347 5,576 (5,569)5,354 
Net income (loss) attributable to unitholders redeemable noncontrolling interests— — 288 288 — — 132 132 
EBITDA23,639 29,309 (23,936)29,012 23,319 32,353 (21,456)34,216 
Deferred compensation plans— 23 (813)(790)— 36 (525)(489)
Stock/unit-based compensation— 107 1,372 1,479 — 258 1,493 1,751 
Change in contingent consideration fair value— 300 — 300 — — — — 
Transaction costs— 365 257 622 — 1,095 742 1,837 
Loss on disposal of assets1,032 (13)— 1,019 706 58 — 764 
Reimbursed software costs, net(74)— — (74)(237)— — (237)
Legal, advisory and settlement costs— 599 327 926 — (84)947 863 
Severance and executive recruiting costs— 245 2,031 2,276 — 131 597 728 
Amortization of hotel signing fees and lock subsidies— 545 — 545 — 351 — 351 
Other (gain) loss— 96 29 125 — 42 87 129 
Adjusted EBITDA24,597 31,576 (20,733)35,440 23,788 34,240 (18,115)39,913 
Interest expense— (1,373)(4,884)(6,257)— (2,116)(1,700)(3,816)
Non-cash interest from finance lease— — — — — 327 — 327 
Adjusted income tax (expense) benefit(5,454)(5,376)7,673 (3,157)(6,230)(7,445)5,907 (7,768)
Adjusted net income (loss) available to common stockholders, unitholders and Series D convertible preferred stockholders on an "as converted" basis$19,143 $24,827 $(17,944)$26,026 $17,558 $25,006 $(13,908)$28,656 
INCOME (LOSS) PER SHARE - DILUTED
Net income (loss) per diluted share attributable to common stockholders (1)
$5.51 $2.07 $(12.68)$(5.10)$5.41 $2.78 $(12.34)$(4.15)
Weighted average common shares outstanding - diluted3,137 3,137 3,137 3,137 3,006 3,006 3,006 3,006 
ADJUSTED INCOME (LOSS) PER SHARE - DILUTED
Adjusted net income (loss) per diluted share available to common stockholders, unitholders and Series D convertible preferred stockholders on an "as converted" basis (1)
$2.39 $3.10 $(2.24)$3.24 $2.29 $3.26 $(1.81)$3.73 
Weighted average diluted shares8,021 8,021 8,021 8,021 7,674 7,674 7,674 7,674 
(1) The sum of net income (loss) per diluted share and adjusted net income (loss) per diluted share, as calculated for the segments, may differ from the consolidated total due to rounding.
13


ASHFORD INC. AND SUBSIDIARIES
PRODUCTS & SERVICES
CONSOLIDATED STATEMENTS OF OPERATIONS AND
RECONCILIATION OF NET INCOME (LOSS) TO EBITDA, ADJUSTED EBITDA AND ADJUSTED NET INCOME (LOSS)
(unaudited, in thousands, except per share amounts)
Three Months Ended June 30, 2023
RemingtonPremierINSPIREREDOpenKey
Other (1)
Products & Services
REVENUE
Hotel management fees:
Base management fees$10,388 $— $— $— $— $— $10,388 
Incentive management fees2,059 — — — — — 2,059 
Other management fees2,431 — — — — — 2,431 
Design and construction fees— 7,605 — — — — 7,605 
Audio visual— — 41,349 — — — 41,349 
Other— — 9,794 422 1,536 11,755