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Ashford Reports First Quarter 2020 Results

June 18, 2020

DALLAS—Ashford Inc. (NYSE American: AINC) (“Ashford” or the “Company”) today reported the following results and performance measures for the first quarter ended March 31, 2020. Unless otherwise stated, all reported results compare the first quarter ended March 31, 2020, with the first quarter ended March 31, 2019 (see discussion below). The reconciliation of non-GAAP financial measures is included in the financial tables accompanying this press release.

COVID-19 UPDATE

On March 11, 2020, the World Health Organization declared COVID-19 a global pandemic. In the United States, federal, state, and local government agencies implemented emergency declarations and issued restrictions on travel, implementation of social distancing protocols, stay at home orders, limitations on gatherings and mandates to close all non-essential businesses.

In response to the impact of COVID-19 on the hospitality industry, the Company is deploying numerous strategies and protocols to protect the health and safety of its employees, guests, partners, and communities where it operates. Additionally, the Company has taken steps to ensure that it has additional financial flexibility going forward to navigate this crisis, including:

The Company has taken proactive and aggressive actions to protect liquidity and reduce corporate expenses through compensation reductions and the curtailment of expenses resulting in an approximate 25% reduction in corporate G&A and will continue to take all necessary additional actions to preserve capital and liquidity.
During the quarter, the Company converted its existing credit agreement with Bank of America, N.A. into a $35 million term loan agreement.
The Company’s portfolio companies and advised REIT platforms have each taken action to enhance their financial flexibility including implementing workforce reductions and expense reductions.
The anticipated negative impact of the COVID-19 crisis on economic activity and the hospitality industry continues to evolve. The crisis is expected to continue to impact the Company’s financial results during the second quarter of 2020 and beyond.

STRATEGIC OVERVIEW

While COVID-19 has altered the Company’s short-term priorities, its long-term strategy remains unchanged:

High-growth, fee-based business model
Diversified platform of multiple fee generators
Seeks to grow in two primary areas:
Grow our existing REIT platforms accretively and create new platforms; and
Grow our service businesses via increased AUM and third-party business
Highly-aligned management team with superior long-term track record
Leader in asset and investment management for the real estate & hospitality sectors
FINANCIAL AND OPERATING HIGHLIGHTS

Net loss attributable to common stockholders for the first quarter of 2020 totaled $186.3 million, or $84.73 per diluted share. During the quarter, the Company recorded an impairment charge of $178.2 million primarily related to the goodwill associated with Remington and Premier.
Total revenue for the first quarter of 2020 was $133.8 million, reflecting a growth rate of 111% over the prior-year quarter.
Adjusted EBITDA for the first quarter was $12.0 million, reflecting a growth rate of 5.8% over the prior-year quarter.
At the end of the first quarter of 2020, the Company had approximately $8.0 billion of gross assets under management.
As of March 31, 2020, the Company had corporate cash of $50.0 million.

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