0001604738falsetrue00016047382023-11-082023-11-080001604738us-gaap:CommonStockMember2023-11-082023-11-080001604738ainc:PreferredStockPurchaseRightMember2023-11-082023-11-08

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): November 8, 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 November 8, 2023, Ashford Inc. (the “Company”) issued a press release announcing its financial results for the third quarter ended September 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: November 8, 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 THIRD QUARTER 2023 RESULTS
DALLAS, November 8, 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 third quarter ended September 30, 2023. Unless otherwise stated, all reported results compare the third quarter ended September 30, 2023, with the third quarter ended September 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

THIRD QUARTER 2023 FINANCIAL HIGHLIGHTS
Net loss attributable to common stockholders for the quarter was $(12.0) million, or $(3.87) per diluted share. Adjusted net income for the quarter was $7.8 million, or $0.96 per diluted share.
Total revenue, excluding cost reimbursement revenue, for the quarter was $73.3 million, reflecting a 7.9% growth rate over the prior year quarter.
Adjusted EBITDA for the quarter was $11.8 million.
At the end of the third quarter, the Company had approximately $7.9 billion of gross assets under management.
As of September 30, 2023, the Company had corporate cash of approximately $19.0 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 Hotels & Resorts Inc. (“Braemar”) (NYSE: BHR) 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 (“Texas Strategic Growth Fund”).



Ashford Reports Third Quarter Results
Page 2
November 8, 2023



Ashford Trust has issued $76.8 million of its Series J and Series K Redeemable Preferred Stock through Ashford Securities since the offering commenced, including $28.3 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 40 broker-dealers and RIA firms.
During the quarter, Ashford invested $2.5 million in the Texas Strategic Growth Fund. The proceeds from that investment, along with other funds raised, were used to make an equity investment in a multi-family property located in San Antonio.
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 third quarter, Remington generated hotel management fee revenue of $12.4 million, Net Income Attributable to the Company of $1.1 million, and Adjusted EBITDA of $4.7 million.
Remington continues to focus on growing its mix of third-party managed hotels, which currently account for approximately 40% of Remington’s managed hotels. At the end of the third quarter, Remington managed 121 properties that were open and operating – 49 under third-party management agreements and 72 for Ashford Trust and Braemar – located in 26 states and Washington, D.C. across 26 brands, including 13 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 as both corporate and social groups have been eager to gather. It has seen a similar recovery in its show services segment. In the third quarter, INSPIRE had audio visual revenue of $30.6 million, Net Loss Attributable to the Company of $(1.1) million, and Adjusted EBITDA of $0.8 million.
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 during the third quarter, Premier signed 5 third-party engagements, totaling $0.5 million in expected fees. In the third quarter, Premier generated $7.4 million of design and construction fee revenue, Net Loss Attributable to the Company of $(0.1) million, and Adjusted EBITDA of $2.7 million.



Ashford Reports Third Quarter Results
Page 3
November 8, 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 third quarter, RED Hospitality generated $8.4 million of revenue, Net Loss Attributable to the Company of $(0.3) million, and $0.9 million of Adjusted EBITDA.
FINANCIAL RESULTS
Net loss attributable to common stockholders for the quarter totaled $(12.0) million, or $(3.87) per diluted share. Adjusted net income for the quarter was $7.8 million, or $0.96 per diluted share.
For the quarter ended September 30, 2023, base advisory fee revenue was $11.5 million. The base advisory fee revenue in the third quarter was comprised of $8.1 million from Ashford Trust and $3.4 million from Braemar.
Adjusted EBITDA for the quarter was $11.8 million.
CAPITAL STRUCTURE
At the end of the third quarter, the Company had approximately $7.9 billion of gross assets under management from its advised platforms. The Company had corporate cash of $19.0 million and 8.2 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 $127.5 million of loans as of September 30, 2023.
QUARTERLY HIGHLIGHTS FOR ADVISED PLATFORMS
ASHFORD TRUST HIGHLIGHTS
Reported Adjusted EBITDAre of $82.5 million for the third quarter.
Third quarter Comparable RevPAR increased 4.0% over the prior year quarter.
During the quarter, Ashford Trust announced that its Crowne Plaza La Concha Hotel in Key West, Florida is on track to convert to a Marriott Autograph Collection® property in 2024 at which time it will be rebranded to La Concha Key West.
Subsequent to quarter end, Ashford Trust announced that it entered into a new franchise agreement with Marriott International to convert its Le Pavillon Hotel in New Orleans, Louisiana to a Tribute Portfolio property during the first quarter of 2024.
To date, Ashford Trust has issued approximately $76.8 million of its non-traded preferred stock.
BRAEMAR HOTELS & RESORTS HIGHLIGHTS
Reported Adjusted EBITDAre of $27.0 million for the third quarter.
Third quarter Comparable RevPAR was $264.
During the quarter, the Company announced the planned conversion of its Mr. C Beverly Hills Hotel to Hilton’s LXR brand under the new name, Cameo Beverly Hills.
During the quarter, Braemar completed a $200 million corporate financing consisting of a $150 million term loan and a $50 million credit facility.
During the quarter, the Company upsized and extended its loan secured by the Four Seasons Resort Scottsdale at Troon North.
Subsequent to quarter end, the Company extended its loan secured by the Ritz-Carlton Lake Tahoe.



Ashford Reports Third Quarter Results
Page 4
November 8, 2023



TEXAS STRATEGIC GROWTH FUND HIGHLIGHTS
Including the Company’s $2.5 million investment, the fund has raised approximately $6 million of capital.
Completed first equity investment of $5 million in a 466-unit multi-family property in San Antonio, TX.

“The lodging industry continues to perform well despite a normalization of leisure travel and general macroeconomic concerns,” commented Monty J. Bennett, Ashford’s Chairman and Chief Executive Officer. “While we reported solid revenue growth at INSPIRE, Premier and RED Hospitality, our margins were negatively impacted as those businesses resume more normalized staffing levels compared to the prior year quarter, and we continue to be encouraged with the pace of capital raising at Ashford Securities.”

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, November 9, 2023, at 12:00 p.m. ET. The number to call for this interactive teleconference is (646) 960-0375. A replay of the conference call will be available through Thursday, November 16, 2023, by dialing (647) 362-9199 and entering the confirmation number, 1818099.

The Company will also provide an online simulcast and rebroadcast of its third 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, November 9, 2023, beginning at 12:00 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.



Ashford Reports Third Quarter Results
Page 5
November 8, 2023



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 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)
September 30, 2023December 31, 2022
ASSETS
Current assets:
Cash and cash equivalents$28,018 $44,390 
Restricted cash36,215 37,058 
Restricted investment88 303 
Accounts receivable, net of allowance of $1,251 and $175, respectively
31,038 17,615 
Due from affiliates575 463 
Due from Ashford Trust7,625 — 
Due from Braemar— 11,828 
Inventories2,544 2,143 
Prepaid expenses and other14,062 11,226 
Total current assets120,165 125,026 
Investments
7,542 4,217 
Property and equipment, net54,942 41,791 
Operating lease right-of-use assets22,140 23,844 
Goodwill61,013 58,675 
Intangible assets, net216,184 226,544 
Other assets, net1,118 2,259 
Total assets$483,104 $482,356 
LIABILITIES
Current liabilities:
Accounts payable and accrued expenses$42,067 $56,079 
Dividends payable28,318 27,285 
Due to affiliates49 15 
Due to Ashford Trust— 1,197 
Due to Braemar3,533 — 
Deferred income673 444 
Notes payable, net4,145 5,195 
Finance lease liabilities426 1,456 
Operating lease liabilities4,076 3,868 
Claims liabilities and other32,677 25,630 
Total current liabilities115,964 121,169 
Deferred income7,971 7,356 
Deferred tax liability, net27,613 27,873 
Deferred compensation plan1,370 2,849 
Notes payable, net119,241 89,680 
Finance lease liabilities2,947 1,962 
Operating lease liabilities20,180 20,082 
Other liabilities3,716 3,237 
Total liabilities299,002 274,208 
MEZZANINE EQUITY
Series D Convertible Preferred Stock, $0.001 par value, 19,120,000 shares issued and outstanding as of September 30, 2023 and December 31, 2022
478,000 478,000 
Redeemable noncontrolling interests1,764 1,614 
EQUITY (DEFICIT)
Common stock, 100,000,000 shares authorized, $0.001 par value, 3,317,786 and 3,181,585 shares issued and 3,213,975 and 3,110,044 shares outstanding at September 30, 2023 and December 31, 2022, respectively
Additional paid-in capital299,365 297,715 
Accumulated deficit(595,717)(568,482)
Accumulated other comprehensive income (loss)(30)78 
Treasury stock, at cost, 103,811 and 71,541 shares at September 30, 2023 and December 31, 2022, respectively
(1,331)(947)
Total equity (deficit) of the Company(297,710)(271,633)
Noncontrolling interests in consolidated entities2,048 167 
Total equity (deficit)(295,662)(271,466)
Total liabilities, mezzanine equity and equity (deficit)$483,104 $482,356 
6









ASHFORD INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited, in thousands, except per share amounts)
Three Months EndedNine Months Ended
September 30,September 30,
 2023202220232022
REVENUE 
Advisory services fees:
Base advisory fees$11,514 $12,124 $35,539 $35,637 
Incentive advisory fees67 — 201 — 
Other advisory revenue131 131 389 389 
Hotel management fees:
Base management fees9,159 9,285 28,557 24,943 
Incentive management fees925 2,242 3,966 6,113 
Other management fees2,307 1,349 6,933 2,418 
Design and construction fees7,430 6,276 21,964 15,538 
Audio visual 30,641 26,159 112,347 87,101 
Other11,175 10,391 32,057 33,902 
Cost reimbursement revenue107,866 96,651 317,094 259,979 
Total revenues181,215 164,608 559,047 466,020 
EXPENSES
Salaries and benefits22,268 19,454 66,727 51,686 
Stock/unit-based compensation464 1,921 1,944 3,591 
Cost of revenues for design and construction2,975 1,789 9,430 5,905 
Cost of revenues for audio visual 23,876 19,884 81,697 61,042 
Depreciation and amortization7,084 8,096 21,074 23,740 
General and administrative10,698 8,343 32,220 25,425 
Other5,377 5,750 17,163 16,886 
Reimbursed expenses107,869 96,576 317,023 259,665 
Total operating expenses180,611 161,813 547,278 447,940 
OPERATING INCOME (LOSS)604 2,795 11,769 18,080 
Equity in earnings (loss) of unconsolidated entities(327)(147)(1,174)110 
Interest expense(3,650)(2,966)(9,909)(6,781)
Amortization of loan costs(269)(219)(775)(524)
Interest income522 76 1,239 195 
Realized gain (loss) on investments(80)(3)(160)(74)
Other income (expense)(75)(22)259 (134)
INCOME (LOSS) BEFORE INCOME TAXES(3,275)(486)1,249 10,872 
Income tax (expense) benefit205 (617)(1,642)(5,971)
NET INCOME (LOSS)(3,070)(1,103)(393)4,901 
Net (income) loss from consolidated entities attributable to noncontrolling interests190 272 692 830 
Net (income) loss attributable to redeemable noncontrolling interests(111)(158)(399)(290)
NET INCOME (LOSS) ATTRIBUTABLE TO THE COMPANY(2,991)(989)(100)5,441 
Preferred dividends, declared and undeclared(9,054)(9,029)(27,132)(27,422)
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS$(12,045)$(10,018)$(27,232)$(21,981)
INCOME (LOSS) PER SHARE - BASIC AND DILUTED
Basic:
Net income (loss) attributable to common stockholders$(3.87)$(3.38)$(8.88)$(7.59)
Weighted average common shares outstanding - basic3,116 2,960 3,065 2,895 
Diluted:
Net income (loss) attributable to common stockholders$(3.87)$(3.38)$(9.18)$(7.64)
Weighted average common shares outstanding - diluted3,116 2,960 3,130 2,960 

7









ASHFORD INC. AND SUBSIDIARIES
RECONCILIATION OF NET INCOME (LOSS) TO EBITDA AND ADJUSTED EBITDA
(unaudited, in thousands)
 Three Months EndedNine Months Ended
September 30,September 30,
 2023202220232022
Net income (loss)$(3,070)$(1,103)$(393)$4,901 
Net (income) loss from consolidated entities attributable to noncontrolling interests190 272 692 830 
Net (income) loss attributable to redeemable noncontrolling interests(111)(158)(399)(290)
Net income (loss) attributable to the company(2,991)(989)(100)5,441 
Interest expense3,657 2,967 9,914 6,783 
Amortization of loan costs268 219 773 524 
Depreciation and amortization8,998 9,603 26,222 27,782 
Income tax expense (benefit)(205)617 1,642 5,971 
Net income (loss) attributable to unitholders redeemable noncontrolling interests111 158 399 290 
EBITDA9,838 12,575 38,850 46,791 
Deferred compensation plans(689)(78)(1,479)(567)
Stock/unit-based compensation465 1,912 1,944 3,663 
Change in contingent consideration fair value130 300 430 300 
Transaction costs685 501 1,307 2,369 
Loss on disposal of assets13 58 1,032 822 
Reimbursed software costs, net— (75)(74)(312)
Legal, advisory and settlement costs117 300 1,043 1,163 
Severance and executive recruiting costs785 731 3,061 1,459 
Amortization of hotel signing fees and lock subsidies334 160 879 511 
Other (gain) loss89 27 214 156 
Adjusted EBITDA$11,767 $16,411 $47,207 $56,355 

8









ASHFORD INC. AND SUBSIDIARIES
RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED NET INCOME (LOSS)
(unaudited, in thousands, except per share amounts)
 Three Months EndedNine Months Ended
September 30,September 30,
2023202220232022
Net income (loss)$(3,070)$(1,103)$(393)$4,901 
Net (income) loss from consolidated entities attributable to noncontrolling interests190 272 692 830 
Net (income) loss attributable to redeemable noncontrolling interests(111)(158)(399)(290)
Preferred dividends, declared and undeclared(9,054)(9,029)(27,132)(27,422)
Net income (loss) attributable to common stockholders(12,045)(10,018)(27,232)(21,981)
Amortization of loan costs268 219 773 524 
Depreciation and amortization8,998 9,603 26,222 27,782 
Net income (loss) attributable to unitholders redeemable noncontrolling interests111 158 399 290 
Preferred dividends, declared and undeclared9,054 9,029 27,132 27,422 
Deferred compensation plans(689)(78)(1,479)(567)
Stock/unit-based compensation465 1,912 1,944 3,663 
Change in contingent consideration fair value130 300 430 300 
Transaction costs685 501 1,307 2,369 
Loss on disposal of assets13 58 1,032 822 
Non-cash interest from finance lease— 160 — 487 
Reimbursed software costs, net— (75)(74)(312)
Legal, advisory and settlement costs117 300 1,043 1,163 
Severance and executive recruiting costs785 731 3,061 1,459 
Amortization of hotel signing fees and lock subsidies334 160 879 511 
Other (gain) loss89 27 214 156 
GAAP income tax expense (benefit)(205)617 1,642 5,971 
Adjusted income tax (expense) benefit (1)
(311)(1,825)(3,468)(9,593)
Adjusted net income available to common stockholders, unitholders and Series D convertible preferred stockholders on an "as converted" basis$7,799 $11,779 $33,825 $40,466 
Adjusted net income per diluted share available to common stockholders, unitholders and Series D convertible preferred stockholders on an "as converted" basis$0.96 $1.48 $4.19 $5.24 
Weighted average diluted shares8,154 7,932 8,066 7,729 
Components of weighted average diluted shares
Common shares3,116 2,960 3,065 2,895 
Series D convertible preferred stock4,234 4,221 4,230 4,218 
Deferred compensation plan223 205 214 203 
Acquisition related shares472 376 443 269 
Restricted shares and units109 170 114 144 
Weighted average diluted shares8,154 7,932 8,066 7,729 
Reconciliation of income tax expense (benefit) to adjusted income tax (expense) benefit
GAAP income tax (expense) benefit$205 $(617)$(1,642)$(5,971)
Less deferred income tax (expense) benefit516 1,208 1,826 3,622 
Adjusted income tax (expense) benefit (1)
$(311)$(1,825)$(3,468)$(9,593)
(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 September 30, 2023Three Months Ended September 30, 2022
Advisory
Products & ServicesCorporate/ OtherAshford Inc. Consolidated
Advisory
Products & ServicesCorporate/ OtherAshford Inc. Consolidated
REVENUE
Advisory services fees:
Base advisory fees - Trust$8,121 $— $— $8,121 $8,855 $— $— $8,855 
Base advisory fees - Braemar3,393 — — 3,393 3,269 — — 3,269 
Incentive advisory fees - Braemar67 — — 67 — — — — 
Other advisory revenue - Braemar131 — — 131 131 — — 131 
Hotel management fees:
Base management fees— 9,159 — 9,159 — 9,285 — 9,285 
Incentive management fees— 925 — 925 — 2,242 — 2,242 
Other management fees— 2,307 — 2,307 — 1,349 — 1,349 
Design and construction fees— 7,430 — 7,430 — 6,276 — 6,276 
Audio visual— 30,641 — 30,641 — 26,159 — 26,159 
Other40 11,135 — 11,175 — 10,391 — 10,391 
Cost reimbursement revenue7,386 97,672 2,808 107,866 7,798 84,232 4,621 96,651 
Total revenues19,138 159,269 2,808 181,215 20,053 139,934 4,621 164,608 
EXPENSES
Salaries and benefits— 13,480 9,477 22,957 — 11,099 8,433 19,532 
Deferred compensation plans— (696)(689)— 17 (95)(78)
Stock/unit-based compensation— 49 415 464 — 93 1,828 1,921 
Cost of audio visual revenues— 23,876 — 23,876 — 19,884 — 19,884 
Cost of design and construction revenues— 2,975 — 2,975 — 1,789 — 1,789 
Depreciation and amortization368 6,689 27 7,084 853 7,179 64 8,096 
General and administrative— 8,416 2,282 10,698 — 6,593 1,750 8,343 
Other— 5,377 — 5,377 — 5,750 — 5,750 
Reimbursed expenses4,402 97,630 2,808 104,840 3,147 84,170 4,621 91,938 
REIT stock/unit-based compensation2,987 42 — 3,029 4,576 62 — 4,638 
Total operating expenses7,757 158,541 14,313 180,611 8,576 136,636 16,601 161,813 
OPERATING INCOME (LOSS)11,381 728 (11,505)604 11,477 3,298 (11,980)2,795 
Other— (1,369)(2,510)(3,879)— (1,386)(1,895)(3,281)
INCOME (LOSS) BEFORE INCOME TAXES11,381 (641)(14,015)(3,275)11,477 1,912 (13,875)(486)
Income tax (expense) benefit(2,780)267 2,718 205 (2,849)(119)2,351 (617)
NET INCOME (LOSS)8,601 (374)(11,297)(3,070)8,628 1,793 (11,524)(1,103)
Net (income) loss from consolidated entities attributable to noncontrolling interests— 177 13 190 — 272 — 272 
Net (income) loss attributable to redeemable noncontrolling interests— — (111)(111)— — (158)(158)
NET INCOME (LOSS) ATTRIBUTABLE TO THE COMPANY8,601 (197)(11,395)(2,991)8,628 2,065 (11,682)(989)
Preferred dividends, declared and undeclared— — (9,054)(9,054)— — (9,029)(9,029)
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS$8,601 $(197)$(20,449)$(12,045)$8,628 $2,065 $(20,711)$(10,018)
(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 September 30, 2023Three Months Ended September 30, 2022
Advisory
Products & ServicesCorporate/ OtherAshford Inc. Consolidated
Advisory
Products & ServicesCorporate/ OtherAshford Inc. Consolidated
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS$8,601 $(197)$(20,449)$(12,045)$8,628 $2,065 $(20,711)$(10,018)
Preferred dividends, declared and undeclared— — 9,054 9,054 — — 9,029 9,029 
NET INCOME (LOSS) ATTRIBUTABLE TO THE COMPANY8,601 (197)(11,395)(2,991)8,628 2,065 (11,682)(989)
Interest expense— 901 2,756 3,657 — 1,166 1,801 2,967 
Amortization of loan costs— 51 217 268 — 33 186 219 
Depreciation and amortization368 8,603 27 8,998 853 8,686 64 9,603 
Income tax expense (benefit)2,780 (267)(2,718)(205)2,849 119 (2,351)617 
Net income (loss) attributable to unitholders redeemable noncontrolling interests— — 111 111 — — 158 158 
EBITDA11,749 9,091 (11,002)9,838 12,330 12,069 (11,824)12,575 
Deferred compensation plans— (696)(689)— 17 (95)(78)
Stock/unit-based compensation— 50 415 465 — 84 1,828 1,912 
Change in contingent consideration fair value— 130 — 130 — 300 — 300 
Transaction costs— 224 461 685 — 682 (181)501 
Loss on disposal of assets— 13 — 13 — 58 — 58 
Reimbursed software costs, net— — — — (75)— — (75)
Legal, advisory and settlement costs— 20 97 117 — 78 222 300 
Severance and executive recruiting costs— 15 770 785 — 24 707 731 
Amortization of hotel signing fees and lock subsidies— 334 — 334 — 160 — 160 
Other (gain) loss— 89 — 89 — 27 — 27 
Adjusted EBITDA11,749 9,973 (9,955)11,767 12,255 13,499 (9,343)16,411 
Interest expense— (901)(2,756)(3,657)— (1,166)(1,801)(2,967)
Non-cash interest from finance lease— — — — — 160 — 160 
Adjusted income tax (expense) benefit(2,609)(949)3,247 (311)(3,022)(1,817)3,014 (1,825)
Adjusted net income (loss) available to common stockholders, unitholders and Series D convertible preferred stockholders on an "as converted" basis$9,140 $8,123 $(9,464)$7,799 $9,233 $10,676 $(8,130)$11,779 
INCOME (LOSS) PER SHARE - DILUTED
Net income (loss) per diluted share attributable to common stockholders (1)
$2.76 $(0.06)$(6.56)$(3.87)$2.91 $0.70 $(7.00)$(3.38)
Weighted average common shares outstanding - diluted3,116 3,116 3,116 3,116 2,960 2,960 2,960 2,960 
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)
$1.12 $1.00 $(1.16)$0.96 $1.16 $1.35 $(1.02)$1.48 
Weighted average diluted shares8,154 8,154 8,154 8,154 7,932 7,932 7,932 7,932 
(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)
Nine Months Ended September 30, 2023Nine Months Ended September 30, 2022
Advisory
Products & ServicesCorporate/ OtherAshford Inc. Consolidated
Advisory
Products & ServicesCorporate/ OtherAshford Inc. Consolidated
REVENUE
Advisory services fees:
Base advisory fees - Trust$24,839 $— $— $24,839 $26,202 $— $— $26,202 
Base advisory fees - Braemar10,700 — — 10,700 9,435 — — 9,435 
Incentive advisory fees - Braemar201 — — 201 — — — — 
Other advisory revenue - Braemar389 — — 389 389 — — 389 
Hotel management fees:
Base management fees— 28,557 — 28,557 — 24,943 — 24,943 
Incentive management fees— 3,966 — 3,966 — 6,113 — 6,113 
Other management fees— 6,933 — 6,933 — 2,418 — 2,418 
Design and construction fees— 21,964 — 21,964 — 15,538 — 15,538 
Audio visual— 112,347 — 112,347 — 87,101 — 87,101 
Other220 31,837 — 32,057 16 33,886 — 33,902 
Cost reimbursement revenue23,967 284,039 9,088 317,094 22,626 228,919 8,434 259,979 
Total revenues60,316 489,643 9,088 559,047 58,668 398,918 8,434 466,020 
EXPENSES
Salaries and benefits— 39,660 28,546 68,206 — 28,785 23,468 52,253 
Deferred compensation plans— 30 (1,509)(1,479)— 53 (620)(567)
Stock/unit-based compensation— 157 1,787 1,944 — 270 3,321 3,591 
Cost of audio visual revenues— 81,697 — 81,697 — 61,042 — 61,042 
Cost of design and construction revenues— 9,430 — 9,430 — 5,905 — 5,905 
Depreciation and amortization1,253 19,694 127 21,074 2,558 20,848 334 23,740 
General and administrative— 25,004 7,216 32,220 — 18,328 7,097 25,425 
Other1,032 16,131 — 17,163 706 16,150 30 16,886 
Reimbursed expenses13,872 283,896 9,088 306,856 9,410 228,705 8,434 246,549 
REIT stock/unit-based compensation10,024 143 — 10,167 12,902 214 — 13,116 
Total operating expenses26,181 475,842 45,255 547,278 25,576 380,300 42,064 447,940 
OPERATING INCOME (LOSS)34,135 13,801 (36,167)11,769 33,092 18,618 (33,630)18,080 
Other— (3,345)(7,175)(10,520)— (3,334)(3,874)(7,208)
INCOME (LOSS) BEFORE INCOME TAXES34,135 10,456 (43,342)1,249 33,092 15,284 (37,504)10,872 
Income tax (expense) benefit(8,244)(4,844)11,446 (1,642)(8,196)(5,695)7,920 (5,971)
NET INCOME (LOSS)25,891 5,612 (31,896)(393)24,896 9,589 (29,584)4,901 
Net (income) loss from consolidated entities attributable to noncontrolling interests— 679 13 692 — 830 — 830 
Net (income) loss attributable to redeemable noncontrolling interests— — (399)(399)— — (290)(290)
NET INCOME (LOSS) ATTRIBUTABLE TO THE COMPANY25,891 6,291 (32,282)(100)24,896 10,419 (29,874)5,441 
Preferred dividends, declared and undeclared— — (27,132)(27,132)— — (27,422)(27,422)
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS$25,891 $6,291 $(59,414)$(27,232)$24,896 $10,419 $(57,296)$(21,981)
(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)
Nine Months Ended September 30, 2023Nine Months Ended September 30, 2022
Advisory
Products & ServicesCorporate/ OtherAshford Inc. Consolidated
Advisory
Products & ServicesCorporate/ OtherAshford Inc. Consolidated
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS$25,891 $6,291 $(59,414)$(27,232)$24,896 $10,419 $(57,296)$(21,981)
Preferred dividends, declared and undeclared— — 27,132 27,132 — — 27,422 27,422 
NET INCOME (LOSS) ATTRIBUTABLE TO THE COMPANY25,891 6,291 (32,282)(100)24,896 10,419 (29,874)5,441 
Interest expense— 2,274 7,640 9,914 — 3,282 3,501 6,783 
Amortization of loan costs— 149 624 773 — 135 389 524 
Depreciation and amortization1,253 24,842 127 26,222 2,558 24,890 334 27,782 
Income tax expense (benefit)8,244 4,844 (11,446)1,642 8,196 5,695 (7,920)5,971 
Net income (loss) attributable to unitholders redeemable noncontrolling interests— — 399 399 — — 290 290 
EBITDA35,388 38,400 (34,938)38,850 35,650 44,421 (33,280)46,791 
Deferred compensation plans— 30 (1,509)(1,479)— 53 (620)(567)
Stock/unit-based compensation— 157 1,787 1,944 — 342 3,321 3,663 
Change in contingent consideration fair value— 430 — 430 — 300 — 300 
Transaction costs— 589 718 1,307 — 1,777 592 2,369 
Loss on disposal of assets1,032 — — 1,032 706 116 — 822 
Reimbursed software costs, net(74)— — (74)(312)— — (312)
Legal, advisory and settlement costs— 619 424 1,043 — (6)1,169 1,163 
Severance and executive recruiting costs— 260 2,801 3,061 — 155 1,304 1,459 
Amortization of hotel signing fees and lock subsidies— 879 — 879 — 511 — 511 
Other (gain) loss— 185 29 214 — 69 87 156 
Adjusted EBITDA36,346 41,549 (30,688)47,207 36,044 47,738 (27,427)56,355 
Interest expense— (2,274)(7,640)(9,914)— (3,282)(3,501)(6,783)
Non-cash interest from finance lease— — — — — 487 — 487 
Adjusted income tax (expense) benefit(8,063)(6,325)10,920 (3,468)(9,252)(9,262)8,921 (9,593)
Adjusted net income (loss) available to common stockholders, unitholders and Series D convertible preferred stockholders on an "as converted" basis$28,283 $32,950 $(27,408)$33,825 $26,792 $35,681 $(22,007)$40,466 
INCOME (LOSS) PER SHARE - DILUTED
Net income (loss) per diluted share attributable to common stockholders (1)
$8.27 $2.01 $(19.46)$(9.18)$8.41 $3.52 $(19.57)$(7.64)
Weighted average common shares outstanding - diluted3,130 3,130 3,130 3,130 2,960 2,960 2,960 2,960 
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)
$3.51 $4.09 $(3.40)$4.19 $3.47 $4.62 $(2.85)$5.24 
Weighted average diluted shares8,066 8,066 8,066 8,066 7,729 7,729 7,729 7,729 
(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 September 30, 2023
RemingtonPremierINSPIREREDOpenKey
Other (1)
Products & Services
REVENUE
Hotel management fees:
Base management fees$9,159 $— $— $— $— $— $9,159 
Incentive management fees925 — — — — — 925 
Other management fees2,307 — — — — — 2,307 
Design and construction fees— 7,430 — — — — 7,430 
Audio visual— — 30,641 — — — 30,641 
Other—