FAIRFAX, Va., Aug. 06, 2018 (GLOBE NEWSWIRE) -- Playa Hotels & Resorts N.V. (the “Company” or “Playa”) (NASDAQ:PLYA) today announced results of operations for the three and six months ended June 30, 2018.

Three Months Ended June 30, 2018 Results

-- Net Income was $16.8 million compared to a Net Loss of $10.5 million in 2017 -- Adjusted Net Income(1) was $13.4 million compared to Adjusted Net Income of $3.6 million in 2017 -- Net Package RevPARdecreased 1.8% over 2017 to $203.23, driven by a decrease in Net Package ADR of 4.1% and partially offset by Occupancy growth of 190 basis points -- Owned Resort EBITDA increased 1.9% over 2017 to $50.0 million -- Owned Resort EBITDA Margindecreased 0.5% over 2017 to 35.2% -- Adjusted EBITDAincreased 0.7% over 2017 to $41.3 million

Six Months Ended June 30, 2018 Results

-- Net Incomewas $38.6 million compared to $17.1 million in 2017 -- Adjusted Net Income(1)was $48.5 million compared to $37.2 million in 2017 -- Net Package RevPAR decreased 0.7% over the comparable 2017 period to $237.08, driven by a decrease in Net Package ADR of 1.8% and partially offset by Occupancy growth of 90 basis points -- Owned Resort EBITDA increased 0.9% over the comparable 2017 period to $132.5 million -- Owned Resort EBITDA Margin decreased 0.5% over the comparable 2017 period to 42.1% -- Adjusted EBITDA increased 0.3% over the comparable 2017 period to $115.9 million

(1) Adjusted Net Income/(Loss) excludes special items, which are those items deemed not to be reflective of ongoing operations.

“We are very excited about the Sagicor transaction which we completed in June and we are happy to welcome those resorts and their significant base of earnings and brand affiliations to Playa's portfolio. While only including one-month of contribution to our Second Quarter results, the portfolio is performing above our initial expectations and this is before implementing many of the value-enhancing initiatives we've identified. We are very encouraged by these early results and look forward to further enhancing value at these excellent resorts.”

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

-- On June 1, 2018 we completed a business combination with certain companies affiliated with Sagicor Group Jamaica Limited (collectively, “Sagicor”), whereby Sagicor contributed to Playa a portfolio of five all-inclusive resorts and two adjacent oceanfront developable land sites located on the desirable North Coast of Jamaica. The portfolio includes four existing resorts including the 495-room Hilton Rose Hall Resort & Spa, the 268-room Jewel Runaway Bay Beach & Golf Resort, the 250-room Jewel Dunn’s River Beach Resort and the 225-room Jewel Paradise Cove Beach Resort & Spa. It also includes an 88- room hotel tower and spa, two developable land sites with a potential density of up to 700 rooms and a hotel management contract for the Jewel Grande Montego Bay. The existing assets were previously managed by an external third-party operator but Playa assumed management of the assets on the closing of the transaction. Consideration for such assets, which was subject to certain post-closing adjustments, was comprised of 20,000,000 shares of Playa’s common stock and $93.1 million in net cash. In addition, two individuals nominated by Sagicor joined Playa’s Board of Directors upon the consummation of the transaction. -- On June 7, 2018 we entered into the Second Amendment (the “Amendment”) to our Amended & Restated Credit Agreement dated as of April 27, 2017 (the “Existing Credit Agreement”). The Amendment amended the Existing Credit Agreement to, among other things (i) effect an incremental term loan facility of $100.0 million (the “Incremental Term Loan” and, together with the existing terms loans that were in effect prior to the amendment, the “Term Loan”) pursuant to the exercise of our option to request incremental loans under the Existing Credit Agreement and (ii) decrease the interest rate applicable to the Term Loan by 0.50% to, at our option, at either a base rate plus a margin of 1.75% or LIBOR plus a margin of 2.75%. Other terms set forth in the Existing Credit Agreement, including those disclosed in our Annual Report on Form 10-K filed on March 1, 2018, were not effected by the Amendment.

The following table sets forth information with respect to our Occupancy, Net Package ADR, Net Package RevPAR, Total Net Revenue, Owned Resort EBITDA, Corporate Expenses, and Adjusted EBITDA for the three and six months ended June 30, 2018 and 2017 for our portfolio (in thousands):

Playa Hotels & Resorts N.V. --------------------------- -------- -------- --------- -------- -------- --------- Total Portfolio Summary Three Months Ended Six Months Ended June 30, June 30, ------------------ ------------------ 2018 2017 Change 2018 2017 Change -------- -------- --------- -------- -------- --------- Occupancy 83.8% 81.9% 1.9 pts 85.6% 84.7% 0.9 pts Net Package ADR $242.43 $252.68 -4.1% $276.86 $281.94 -1.8% Net Package RevPAR $203.23 $207.04 -1.8% $237.08 $238.71 -0.7% Total Net Revenue (1) $141,753 $137,415 3.2% $314,905 $307,925 2.3% Owned Resort Revenue (2) $141,707 $137,413 3.1% $314,211 $307,923 2.0% Owned Resort EBITDA (3) $49,951 $49,020 1.9% $132,534 $131,302 0.9% Owned Resort EBITDA Margin 35.2% 35.7% (0.5) pts 42.2% 42.6% (0.4) pts Corporate Expenses $8,689 $8,001 8.6% $17,009 $15,810 7.6% Management Fee Revenue $55 $0 100.0% $351 $0 100.0% Adjusted EBITDA (4) $41,317 $41,019 0.7% $115,876 $115,492 0.3% Adjusted EBITDA Margin 29.1% 29.9% (0.8) pts 36.8% 37.5% (0.7) pts Comparable Portfolio Summary Three Months Ended Six Months Ended June 30, June 30, ------------------ ------------------ 2018 2017 Change 2018 2017 Change -------- -------- --------- -------- -------- --------- Occupancy 83.4% 81.9% 1.5 pts 85.5% 84.7% 0.8 pts Net Package ADR $244.55 $252.68 -3.2% $279.09 $281.94 -1.0% Net Package RevPAR $203.86 $207.04 -1.5% $238.49 $238.71 -0.1% Total Net Revenue (1) $133,817 $137,415 -2.6% $306,968 $307,925 -0.3% Owned Resort Revenue (2) $133,771 $137,413 -2.7% $306,275 $307,923 -0.5% Owned Resort EBITDA (3) $47,166 $49,020 -3.8% $129,748 $131,302 -1.2% Owned Resort EBITDA Margin 35.3% 35.7% (0.4) pts 42.4% 42.6% (0.2) pts Corporate Expenses $8,689 $8,001 8.6% $17,009 $15,810 7.6% Management Fee Revenue $55 $0 100.0% $351 $0 100.0% Adjusted EBITDA (4) $38,530 $41,019 -6.1% $113,091 $115,492 -2.1% Adjusted EBITDA Margin 28.8% 29.9% (1.1) pts 36.8% 37.5% (0.7) pts

(1) Total Net Revenue represents revenue from the sale of all-inclusive packages, which include room accommodations, food and beverage services and entertainment activities, net of compulsory tips paid to employees in Mexico and Jamaica, as well as revenue from other goods, services and amenities not included in the all-inclusive package. Government mandated compulsory tips in the Dominican Republic are not included in this adjustment as they are already excluded from revenue in accordance with U.S. GAAP. A description of how we compute Total Net Revenue and a reconciliation of Total Net Revenue to total revenue can be found in the section “Definitions of Non-U.S. GAAP Measures and Operating Statistics” below.

(2) Owned Resort Revenue excludes Management Fee Revenue, Jamaica delayed opening accrual reversal and MICE (meetings, incentives, conventions and events) income.

(3) A description of how we compute Owned Resort EBITDA and a reconciliation of Net Income to Owned Resort EBITDA can be found in the section “Definitions of Non-U.S. GAAP Measures and Operating Statistics” below.

(4) A description of how we compute Adjusted EBITDA and a reconciliation of Net Income to Adjusted EBITDA can be found in the section “Definitions of Non-U.S. GAAP Measures and Operating Statistics” below.

Balance Sheet

As of June 30, 2018, the Company held $145.9 million in cash and cash equivalents. Total interest-bearing debt was$1.0 billion, comprised fully of Term Loan B secured debt due 2024. As of June 30, 2018, there were no amounts outstanding on the Company’s $100.0 million Revolving Credit Facility.

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