LONDON, UK / ACCESSWIRE / December 14, 2017 / Active-Investors free earnings report on Hyatt Hotels Corp. (NYSE: H) ("Hyatt") has freshly been issued to its members, and you can also sign up to view this report at www.active-investors.com/registration-sg/?symbol=H. The Company released its financial results on November 02, 2017, for the third quarter of the fiscal year 2017. The Chicago, Illinois-based Company reported a y-o-y growth in its total revenues of 2.8% during Q3 FY17, topping analysts' estimates. Register today and get free access to our complimentary member's area where many more reports are available:
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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Hyatt Hotels most recent news is on our radar and we have decided to include it on our blog post. Today's free coverage is available at:
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Earnings Highlights and Summary
Hyatt reported total revenues of $1.12 billion in Q3 FY17, which came in above the $1.09 billion recorded in Q3 FY16, and beating market expectations of $1.09 billion. The Company's Other revenues from managed properties were up 3.1% to $463 million in Q3 FY17 from $448 million in the prior year's same period.
The multinational hotels Company reported a net income of $16 million, or $0.13 per diluted share, in Q3 FY17 versus $62 million, or $0.47 per diluted share, in Q3 FY16. The Company's adjusted net income came in at $32 million, or $0.26 per diluted share, compared to $61 million, or $0.47 per diluted share, in Q3 FY16. Meanwhile, Wall Street had expected the Company to report an adjusted net income of $0.17 per diluted share.
Operational Metrics
For the reported quarter, the Company's direct and selling, general, and administrative expenses were $1.06 billion versus $1.02 billion in the prior year's comparable quarter. The Company's income before income taxes came in at $31 million for Q3 FY17 compared to $90 million in Q3 FY16. The Company reported adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) of $180 million, or 27.5% of total revenues, for Q3 FY17 versus $192 million, or 30.1% of total revenues, in the last year's corresponding quarter. Additionally, the Company's comparable system-wide revenue per available room (RevPAR) increased 1.6% during Q3 FY17.
Segment Results
Hyatt's Owned and Leased Hotels segment's revenues came in at $505 million for Q3 FY17, which was 2.7% lower than the $519 million reported in Q3 FY16. The segment's adjusted EBITDA also fell to $89 million in Q3 FY17 from $97 million in Q3 FY16. The segment's average daily rate (ADR) was $223.50 for the reported quarter, up from $220.01 in Q3 FY16. However, the segment's occupancy was down by 160 basis points y-o-y, while RevPAR fell 0.5% y-o-y in Q3 FY17.
For Q3 FY17, Hyatt's Americas Management and Franchising segment recorded revenues of $95 million, which was 5.9% above the $90 million reported in Q3 FY16. The segment's adjusted EBITDA was $82 million in Q3 FY17 compared to $77 million in Q3 FY16.
The Company's ASPAC Management and Franchising segment reported revenues of $27 million in Q3 FY17 versus $23 million in Q3 FY16. Furthermore, the segment's adjusted EBITDA came in at $17 million for Q3 FY17 versus $14 million reported in Q3 FY16.
Hyatt's EAME/SW Asia Management and Franchising segment's revenues came in at $18 million during Q3 FY17, up from $15 million in the last year's same quarter. Meanwhile, the segment's adjusted EBITDA surged 41.3% to $11 million in the reported period from $8 million in the last year's comparable period.
Cash Flow and Cash Matters
During the nine months ended September 30, 2017, Hyatt generated net cash from operating activities of $450 million versus $351 million in the previous year's corresponding period. The Company had cash and cash equivalents worth $383 million at the close of its books on September 30, 2017, compared to $482 million as on December 31, 2016. Furthermore, the Company had a long-term debt balance amounting to $1.44 billion as on September 30, 2017, compared to $1.45 billion as on December 31, 2016.
Share Repurchase
During Q3 FY17, the Company repurchased 4,012,093 shares of its common stock for an aggregate purchase price of approximately $247 million. Furthermore, the Company had approximately $302 million remaining under its share repurchase authorization as of October 27, 2017.
Outlook
In its guidance for the full year FY17, the Company revised comparable system-wide RevPAR growth to a new range of 2.5% to 3%. The Company now projects net income to be in the range of $193 million to $210 million, and adjusted EBITDA to be in the band of $805 million to $815 million.
Stock Performance Snapshot
December 13, 2017 - At Wednesday's closing bell, Hyatt Hotels' stock ended the trading session flat at $70.75.
Volume traded for the day: 630.02 thousand shares.
Stock performance in the last month – up 1.45%; previous three-month period – up 17.04%; past twelve-month period – up 24.12%; and year-to-date – up 28.03%
After yesterday's close, Hyatt Hotels' market cap was at $8.35 billion.
Price to Earnings (P/E) ratio was at 42.65.
The stock is part of the Services sector, categorized under the Lodging industry. This sector was up 0.2% at the end of the session.
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