EX-99.1 2 ainc2022q4earningsrelease-.htm EX-99.1 Document
EXHIBIT 99.1

ashfordk150dpa08.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 FOURTH QUARTER
AND FULL YEAR 2022 RESULTS
DALLAS, February 22, 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 fourth quarter and full year ended December 31, 2022. Unless otherwise stated, all reported results compare the fourth quarter and full year ended December 31, 2022, with the fourth quarter and full year ended December 31, 2021 (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
Four paths to growth:
Recovery of the hospitality industry;
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

FOURTH QUARTER 2022 FINANCIAL HIGHLIGHTS
Net loss attributable to common stockholders for the quarter was $(10.8) million, or $(3.65) per diluted share. Adjusted net income for the quarter was $13.2 million, or $1.65 per diluted share.
Total revenue, excluding cost reimbursement revenue, for the quarter was $76.6 million, reflecting a 24% growth rate over the prior year quarter. In the prior year quarter, the Company recognized $5.5 million of Base Advisory Fee revenue from Ashford Hospitality Trust, Inc. (“Ashford Trust”) (NYSE: AHT) which had been deferred in previous quarters.
Total Advisory Fee revenue from Braemar Hotels & Resorts Inc. (“Braemar”) (NYSE: BHR) in the fourth quarter increased 27% over the prior year quarter.
Adjusted EBITDA for the quarter was $19.4 million.
During the quarter, the Company completed a transaction with Ashford Trust whereby the Company transferred its interest in the operating lease for the Hilton Atlanta/Marietta Hotel and Conference Center to Ashford Trust in exchange for the remaining ERFP obligation of $11.4 million.
At the end of the fourth quarter, the Company had approximately $8.2 billion of gross assets under management.



Ashford Reports Fourth Quarter Results
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February 22, 2023



At the end of the fourth quarter, the Company’s advised REITs had total net working capital of $763 million.
As of December 31, 2022, the Company had corporate cash of approximately $31.7 million.

FULL YEAR 2022 FINANCIAL HIGHLIGHTS
Net loss attributable to common stockholders for the year was $(32.8) million, or $(11.26) per diluted share. Adjusted net income for the year was $53.6 million, or $6.88 per diluted share. The per diluted share result reflects a growth rate of 32% over the prior year.
Total revenue, excluding cost reimbursement revenue, for the year was $282.7 million, reflecting a 57% growth rate over the prior year.
Adjusted EBITDA for the year was $75.7 million, reflecting a 56% growth rate over the prior year.
For the year, the Company earned an incentive fee under its advisory agreement with Braemar of approximately $0.8 million. The incentive fee will be paid and recognized over three years pursuant to the terms of the advisory agreement.
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 Trust, and (2) a growth oriented private offering that will target investments in all types of commercial real estate in the state of Texas.
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 fourth quarter, Remington generated hotel management fee revenue of $13.1 million, Net Income Attributable to the Company of $1.0 million, and Adjusted EBITDA of $6.8 million. Adjusted EBITDA in the fourth quarter reflected a growth rate of 93% over the prior year quarter.
Remington continues to focus on growing its mix of third-party managed hotels, which currently account for approximately 38% of Remington’s managed hotels. At the end of the fourth quarter, Remington managed 118 properties that were open and operating – 45 under third-party management agreements and 73 for Ashford Trust and Braemar – located in 27 states and Washington, D.C. across 23 brands, including 18 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, creative services, and design and integration, 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 two 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 fourth quarter, INSPIRE had revenue of $34.2 million, Net Income Attributable to the Company of $1.6 million, and Adjusted EBITDA of $4.6 million. Fourth quarter revenue growth was 57% over the prior year quarter.



Ashford Reports Fourth Quarter Results
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February 22, 2023



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 fourth quarter, Premier had signed 53 third-party engagements, totaling $18.8 million in fees. In the fourth quarter, Premier generated $6.6 million of design and construction fee revenue, Net Loss Attributable to the Company of $(0.1) million, and Adjusted EBITDA of $2.7 million.
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. Despite the short-term impact of Hurricanes Ian and Fiona in the fourth quarter, RED Hospitality generated $6.0 million of revenue, Net Loss Attributable to the Company of $(0.4) million, and $0.5 million of Adjusted EBITDA.
FINANCIAL RESULTS
Net loss attributable to common stockholders for the quarter totaled $(10.8) million, or $(3.65) per diluted share. Adjusted net income for the quarter was $13.2 million, or $1.65 per diluted share.
For the quarter ended December 31, 2022, base advisory fee revenue was $12.0 million. The base advisory fee revenue in the fourth quarter was comprised of $8.6 million from Ashford Trust and $3.4 million from Braemar.
Adjusted EBITDA for the quarter was $19.4 million.
CAPITAL STRUCTURE
At the end of the fourth quarter of 2022, the Company had approximately $8.2 billion of gross assets under management from its advised platforms. The Company had corporate cash of $31.7 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 $99.1 million of loans as of December 31, 2022, of which approximately $45,000 related to its joint venture partners’ share of such loans.
QUARTERLY HIGHLIGHTS FOR ADVISED PLATFORMS
ASHFORD TRUST HIGHLIGHTS
Reported Adjusted EBITDAre of $69.1 million for the fourth quarter.
Extended its JPMorgan Chase – 8 hotels loan for an additional year with a paydown of $50 million.
To date, has issued approximately $4 million of its non-traded preferred stock.
BRAEMAR HOTELS & RESORTS HIGHLIGHTS
Reported Adjusted EBITDAre of $39.2 million for the fourth quarter.
Fourth quarter RevPAR for Braemar was $301, which exceeded fourth quarter 2019 RevPAR by 20%.



Ashford Reports Fourth Quarter Results
Page 4
February 22, 2023



Recently completed the offering of its non-traded preferred stock, issuing approximately $460 million.
Completed the acquisition of the Four Seasons Resort Scottsdale at Troon North for $267.8 million.
Braemar’s Board increased its common stock dividend and authorized a $25 million share repurchase program, which has now been completed.
“Ashford delivered strong fourth quarter results, and we remain confident that the Ashford group of companies is well-positioned to capitalize on the recovery we continue to see in the hospitality industry,” commented Monty J. Bennett, Ashford’s Chairman and Chief Executive Officer. “Looking at our advised platforms, our REITs are well positioned, and both continue to benefit from the strong demand trends we are seeing across the lodging industry. Braemar has the highest quality portfolio in the public markets and has been benefiting from its resort-heavy focus while its urban hotels continue to significantly ramp up as corporate transient and group demand rebound. Ashford Trust’s high-quality, geographically diverse portfolio is also benefiting from increased demand and notable rate increases in many key markets. Looking ahead, we believe both of our advised REITs are poised for further growth in 2023 and beyond.”
Mr. Bennett continued, “Our growth in the quarter was led by Remington and INSPIRE. Premier, which continues to benefit from the ramp up in capital spending at our advised REITs and expansion of its third-party business, also realized strong growth during the quarter. We remain pleased that Ashford Securities continues to accelerate the pace at which our advised platforms can raise capital, and we are very excited about our first investment offering outside of the hospitality industry.” Mr. Bennett added, “Moving forward, we believe the lodging industry will continue to experience growth and our advised REITs remain well-positioned. Additionally, the corporate financing that we closed earlier this year gives us access to attractive capital to continue to grow our platform and consider additional strategic bolt-on acquisitions. With our talented and dedicated management team, I am excited about the future for our Company.”
INVESTOR CONFERENCE CALL AND SIMULCAST
The Company will conduct a conference call on Thursday, February 23, 2023, at 12:00 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, March 2, 2023, by dialing (412) 317-6671 and entering the confirmation number, 13734834.
The Company will also provide an online simulcast and rebroadcast of its fourth quarter 2022 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, February 23, 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



Ashford Reports Fourth Quarter Results
Page 5
February 22, 2023



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 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)
December 31, 2022December 31, 2021
ASSETS
Current assets:
Cash and cash equivalents$44,390 $37,571 
Restricted cash37,058 34,878 
Restricted investment303 576 
Accounts receivable, net17,615 10,502 
Due from affiliates463 165 
Due from Ashford Trust— 2,575 
Due from Braemar11,828 1,144 
Inventories2,143 1,555 
Prepaid expenses and other11,226 9,490 
Total current assets125,026 98,456 
Investments in unconsolidated entities4,217 3,581 
Property and equipment, net41,791 83,566 
Operating lease right-of-use assets23,844 26,975 
Goodwill58,675 56,622 
Intangible assets, net226,544 244,726 
Other assets, net2,259 870 
Total assets$482,356 $514,796 
LIABILITIES
Current liabilities:
Accounts payable and accrued expenses$56,079 $39,897 
Dividends payable27,285 34,574 
Due to affiliates15 — 
Due to Ashford Trust1,197 — 
Deferred income444 2,937 
Notes payable, net5,195 6,725 
Finance lease liabilities1,456 1,065 
Operating lease liabilities3,868 3,628 
Other liabilities25,630 25,899 
Total current liabilities121,169 114,725 
Deferred income7,356 7,968 
Deferred tax liability, net27,873 32,848 
Deferred compensation plan2,849 3,326 
Notes payable, net89,680 52,669 
Finance lease liabilities1,962 43,479 
Operating lease liabilities20,082 23,477 
Other liabilities3,237 — 
Total liabilities274,208 278,492 
MEZZANINE EQUITY
Series D Convertible Preferred Stock, $0.001 par value, 19,120,000 shares issued and outstanding as of December 31, 2022 and December 31, 2021
478,000 478,000 
Redeemable noncontrolling interests1,614 69 
EQUITY (DEFICIT)
Common stock, 100,000,000 shares authorized, $0.001 par value, 3,181,585 and 3,072,688 shares issued and 3,110,044 and 3,023,002 shares outstanding at December 31, 2022 and December 31, 2021, respectively
Additional paid-in capital297,715 294,395 
Accumulated deficit(568,482)(534,999)
Accumulated other comprehensive income (loss)78 (1,206)
Treasury stock, at cost, 71,541 and 49,686 shares at December 31, 2022 and December 31, 2021, respectively
(947)(596)
Total equity (deficit) of the Company(271,633)(242,403)
Noncontrolling interests in consolidated entities167 638 
Total equity (deficit)(271,466)(241,765)
Total liabilities, mezzanine equity and equity (deficit)$482,356 $514,796 
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ASHFORD INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited, in thousands, except per share amounts)
Three Months EndedYear Ended
December 31,December 31,
 2022202120222021
REVENUE 
Advisory services fees:
Base advisory fees$11,955 $17,302 $47,592 $47,045 
Incentive advisory fees268 — 268 — 
Other advisory revenue132 132 521 521 
Hotel management fees:
Base management fees9,129 5,960 34,072 21,291 
Incentive management fees2,420 1,563 8,533 4,969 
Other management fees1,525 — 3,943 — 
Design and construction fees6,629 3,946 22,167 9,557 
Audio visual 34,160 21,710 121,261 49,880 
Other10,410 11,430 44,312 47,329 
Cost reimbursement revenue101,784 66,558 361,763 203,975 
Total revenues178,412 128,601 644,432 384,567 
EXPENSES
Salaries and benefits21,302 17,436 72,988 61,392 
Stock/unit-based compensation454 903 4,045 4,553 
Cost of revenues for design and construction2,454 1,293 8,359 4,105 
Cost of revenues for audio visual 23,944 15,632 84,986 38,243 
Depreciation and amortization8,026 8,144 31,766 32,598 
General and administrative8,067 6,795 33,492 25,594 
Impairment— — — 1,160 
Other8,942 4,771 25,828 18,199 
Reimbursed expenses101,710 66,802 361,375 203,956 
Total operating expenses174,899 121,776 622,839 389,800 
OPERATING INCOME (LOSS)3,513 6,825 21,593 (5,233)
Equity in earnings (loss) of unconsolidated entities282 34 392 (126)
Interest expense(3,215)(1,299)(9,996)(5,144)
Amortization of loan costs(237)(113)(761)(322)
Interest income176 78 371 285 
Realized gain (loss) on investments(47)— (121)(3)
Other income (expense)109 (181)(25)(437)
INCOME (LOSS) BEFORE INCOME TAXES581 5,344 11,453 (10,980)
Income tax (expense) benefit(2,559)(1,388)(8,530)162 
NET INCOME (LOSS)(1,978)3,956 2,923 (10,818)
(Income) loss from consolidated entities attributable to noncontrolling interests341 169 1,171 678 
Net (income) loss attributable to redeemable noncontrolling interests(158)(448)215 
NET INCOME (LOSS) ATTRIBUTABLE TO THE COMPANY(1,795)4,132 3,646 (9,925)
Preferred dividends, declared and undeclared(9,036)(8,999)(36,458)(35,000)
Amortization of preferred stock discount— (120)— (1,053)
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS$(10,831)$(4,987)$(32,812)$(45,978)
INCOME (LOSS) PER SHARE - BASIC AND DILUTED
Basic:
Net income (loss) attributable to common stockholders$(3.65)$(1.79)$(11.26)$(16.68)
Weighted average common shares outstanding - basic2,968 2,785 2,915 2,756 
Diluted:
Net income (loss) attributable to common stockholders$(3.65)$(1.79)$(11.26)$(16.68)
Weighted average common shares outstanding - diluted2,968 2,785 2,915 2,756 

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ASHFORD INC. AND SUBSIDIARIES
RECONCILIATION OF NET INCOME (LOSS) TO EBITDA AND ADJUSTED EBITDA
(unaudited, in thousands)
 Three Months EndedYear Ended
December 31,December 31,
 2022202120222021
Net income (loss)$(1,978)$3,956 $2,923 $(10,818)
(Income) loss from consolidated entities attributable to noncontrolling interests341 169 1,171 678 
Net (income) loss attributable to redeemable noncontrolling interests(158)(448)215 
Net income (loss) attributable to the company(1,795)4,132 3,646 (9,925)
Interest expense3,214 1,303 9,997 5,150 
Amortization of loan costs237 113 761 327 
Depreciation and amortization9,276 9,263 37,058 37,609 
Income tax expense (benefit)2,559 1,388 8,530 (162)
Net income (loss) attributable to unitholders redeemable noncontrolling interests158 (7)448 (63)
EBITDA13,649 16,192 60,440 32,936 
Deferred compensation plans90 481 (477)1,671 
Stock/unit-based compensation454 897 4,117 4,949 
Change in contingent consideration fair value350 — 650 22 
Transaction costs113 1,187 2,451 3,424 
Loss on disposal of assets2,230 272 3,052 1,595 
Reimbursed software costs, net(74)(187)(386)(507)
Legal, advisory and settlement costs135 168 1,298 1,820 
Severance and executive recruiting costs1,009 285 2,468 1,330 
Amortization of hotel signing fees and lock subsidies85 141 596 518 
Other (gain) loss1,320 52 1,476 (553)
Impairment— — — 1,160 
Adjusted EBITDA$19,361 $19,488 $75,685 $48,365 

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ASHFORD INC. AND SUBSIDIARIES
RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED NET INCOME (LOSS)
(unaudited, in thousands, except per share amounts)
 Three Months EndedYear Ended
December 31,December 31,
2022202120222021
Net income (loss)$(1,978)$3,956 $2,923 $(10,818)
(Income) loss from consolidated entities attributable to noncontrolling interests341 169 1,171 678 
Net (income) loss attributable to redeemable noncontrolling interests(158)(448)215 
Preferred dividends, declared and undeclared(9,036)(8,999)(36,458)(35,000)
Amortization of preferred stock discount— (120)— (1,053)
Net income (loss) attributable to common stockholders(10,831)(4,987)(32,812)(45,978)
Amortization of loan costs237 113 761 327 
Depreciation and amortization9,276 9,263 37,058 37,609 
Net income (loss) attributable to unitholders redeemable noncontrolling interests158 (7)448 (63)
Preferred dividends, declared and undeclared9,036 8,999 36,458 35,000 
Amortization of preferred stock discount— 120 — 1,053 
Deferred compensation plans90 481 (477)1,671 
Stock/unit-based compensation454 897 4,117 4,949 
Change in contingent consideration fair value350 — 650 22 
Transaction costs113 1,187 2,451 3,424 
Loss on disposal of assets2,230 272 3,052 1,595 
Non-cash interest from finance lease246 142 733 643 
Reimbursed software costs, net(74)(187)(386)(507)
Legal, advisory and settlement costs135 168 1,298 1,820 
Severance and executive recruiting costs1,009 285 2,468 1,330 
Amortization of hotel signing fees and lock subsidies85 141 596 518 
Other (gain) loss1,320 52 1,476 (553)
Impairment— — — 1,160 
GAAP income tax expense (benefit)2,559 1,388 8,530 (162)
Adjusted income tax (expense) benefit (1)
(3,195)(1,275)(12,788)(4,893)
Adjusted net income available to common stockholders, unitholders and Series D convertible preferred stockholders on an "as converted" basis$13,198 $17,052 $53,633 $38,965 
Adjusted net income per diluted share available to common stockholders, unitholders and Series D convertible preferred stockholders on an "as converted" basis$1.65 $2.24 $6.88 $5.20 
Weighted average diluted shares7,976 7,623 7,793 7,492 
Components of weighted average diluted shares
Common shares2,968 2,785 2,915 2,756 
Series D convertible preferred stock4,223 4,324 4,219 4,265 
Deferred compensation plan206 196 204 198 
Acquisition related shares383 122 298 145 
Restricted shares and units196 196 157 128 
Weighted average diluted shares7,976 7,623 7,793 7,492 
Reconciliation of income tax expense (benefit) to adjusted income tax (expense) benefit
GAAP income tax (expense) benefit$(2,559)$(1,388)$(8,530)$162 
Less deferred income tax (expense) benefit636 (113)4,258 5,055 
Adjusted income tax (expense) benefit (1)
$(3,195)$(1,275)$(12,788)$(4,893)
(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 16 to our consolidated financial statements in our Annual Report on Form 10-K for the year ended December 31, 2021.
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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 December 31, 2022Three Months Ended December 31, 2021
REIT AdvisoryProducts & ServicesCorporate/ OtherAshford Inc. ConsolidatedREIT AdvisoryProducts & ServicesCorporate/ OtherAshford Inc. Consolidated
REVENUE
Advisory services fees:
Base advisory fees - Trust$8,600 $— $— $8,600 $14,477 $— $— $14,477 
Base advisory fees - Braemar3,355 — — 3,355 2,825 — — 2,825 
Incentive advisory fees - Braemar268 — — 268 — — — — 
Other advisory revenue - Braemar132 — — 132 132 — — 132 
Hotel management fees:
Base management fees— 9,129 — 9,129 — 5,960 — 5,960 
Incentive management fees— 2,420 — 2,420 — 1,563 — 1,563 
Other management fees— 1,525 — 1,525 — — — — 
Design and construction fees— 6,629 — 6,629 — 3,946 — 3,946 
Audio visual— 34,160 — 34,160 — 21,710 — 21,710 
Other142 10,268 — 10,410 20 11,410 — 11,430 
Cost reimbursement revenue6,183 91,056 4,545 101,784 7,412 58,298 848 66,558 
Total revenues18,680 155,187 4,545 178,412 24,866 102,887 848 128,601 
EXPENSES
Salaries and benefits— 12,556 8,656 21,212 — 8,897 8,058 16,955 
Deferred compensation plans— 12 78 90 — 70 411 481 
Stock/unit-based compensation— 54 400 454 — 77 826 903 
Cost of audio visual revenues— 23,944 — 23,944 — 15,632 — 15,632 
Cost of design and construction revenues— 2,454 — 2,454 — 1,293 — 1,293 
Depreciation and amortization852 7,105 69 8,026 986 7,006 152 8,144 
General and administrative— 7,689 378 8,067 — 4,693 2,102 6,795 
Other2,122 6,820 — 8,942 — 4,798 (27)4,771 
Reimbursed expenses3,166 91,009 4,545 98,720 2,346 58,186 848 61,380 
REIT stock/unit-based compensation2,943 47 — 2,990 5,310 112 — 5,422 
Total operating expenses9,083 151,690 14,126 174,899 8,642 100,764 12,370 121,776 
OPERATING INCOME (LOSS)9,597 3,497 (9,581)3,513 16,224 2,123 (11,522)6,825 
Other— (752)(2,180)(2,932)— (1,199)(282)(1,481)
INCOME (LOSS) BEFORE INCOME TAXES9,597 2,745 (11,761)581 16,224 924 (11,804)5,344 
Income tax (expense) benefit(2,210)(2,255)1,906 (2,559)(3,953)(348)2,913 (1,388)
NET INCOME (LOSS)7,387 490 (9,855)(1,978)12,271 576 (8,891)3,956 
(Income) loss from consolidated entities attributable to noncontrolling interests— 341 — 341 — 169 — 169 
Net (income) loss attributable to redeemable noncontrolling interests— — (158)(158)— — 
NET INCOME (LOSS) ATTRIBUTABLE TO THE COMPANY7,387 831 (10,013)(1,795)12,271 745 (8,884)4,132 
Preferred dividends, declared and undeclared— — (9,036)(9,036)— — (8,999)(8,999)
Amortization of preferred stock discount— — — — — — (120)(120)
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS$7,387 $831 $(19,049)$(10,831)$12,271 $745 $(18,003)$(4,987)
(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 December 31, 2022Three Months Ended December 31, 2021
REIT AdvisoryProducts & ServicesCorporate/ OtherAshford Inc. ConsolidatedREIT AdvisoryProducts & ServicesCorporate/ OtherAshford Inc. Consolidated
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS$7,387 $831 $(19,049)$(10,831)$12,271 $745 $(18,003)$(4,987)
Preferred dividends, declared and undeclared— — 9,036 9,036 — — 8,999 8,999 
Amortization of preferred stock discount— — — — — — 120 120 
NET INCOME (LOSS) ATTRIBUTABLE TO THE COMPANY7,387 831 (10,013)(1,795)12,271 745 (8,884)4,132 
Interest expense— 1,155 2,059 3,214 — 1,040 263 1,303 
Amortization of loan costs— 47 190 237 — 91 22 113 
Depreciation and amortization852 8,355 69 9,276 986 8,125 152 9,263 
Income tax expense (benefit)2,210 2,255 (1,906)2,559 3,953 348 (2,913)1,388 
Net income (loss) attributable to unitholders redeemable noncontrolling interests— — 158 158 — — (7)(7)
EBITDA10,449 12,643 (9,443)13,649 17,210 10,349 (11,367)16,192 
Deferred compensation plans— 12 78 90 — 70 411 481 
Stock/unit-based compensation— 55 399 454 — 70 827 897 
Change in contingent consideration fair value— 350 — 350 — — — — 
Transaction costs— 751 (638)113 — 427 760 1,187 
Loss on disposal of assets2,122 108 — 2,230 — 272 — 272 
Reimbursed software costs, net(74)— — (74)(187)— — (187)
Legal, advisory and settlement costs— 53 82 135 — 86 82 168 
Severance and executive recruiting costs— 19 990 1,009 — 17 268 285 
Amortization of hotel signing fees and lock subsidies— 85 — 85 — 141 — 141 
Other (gain) loss— 1,320 — 1,320 — 52 — 52 
Adjusted EBITDA12,497 15,396 (8,532)19,361 17,023 11,484 (9,019)19,488 
Interest expense— (1,155)(2,059)(3,214)— (1,040)(263)(1,303)
Non-cash interest from finance lease— 246 — 246 — 142 — 142 
Adjusted income tax (expense) benefit(3,098)(2,736)2,639 (3,195)(4,332)(1,318)4,375 (1,275)
Adjusted net income (loss) available to common stockholders, unitholders and Series D convertible preferred stockholders on an "as converted" basis$9,399 $11,751 $(7,952)$13,198 $12,691 $9,268 $(4,907)$17,052 
INCOME (LOSS) PER SHARE - DILUTED
Net income (loss) per diluted share attributable to common stockholders (1)
$2.49 $0.28 $(6.42)$(3.65)$4.41 $0.27 $(6.46)$(1.79)
Weighted average common shares outstanding - diluted2,968 2,968 2,968 2,968 2,785 2,785 2,785 2,785 
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)
$1.18 $1.47 $(1.00)$1.65 $1.66 $1.22 $(0.64)$2.24 
Weighted average diluted shares7,976 7,976 7,976 7,976 7,623 7,623 7,623 7,623 
(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)
Year Ended December 31, 2022Year Ended December 31, 2021
REIT AdvisoryProducts & ServicesCorporate/ OtherAshford Inc. ConsolidatedREIT AdvisoryProducts & ServicesCorporate/ OtherAshford Inc. Consolidated
REVENUE
Advisory services fees:
Base advisory fees - Trust$34,802 $— $— $34,802 $36,239 $— $— $36,239 
Base advisory fees - Braemar12,790 — — 12,790 10,806 — — 10,806 
Incentive advisory fees - Braemar268 — — 268 — — — — 
Other advisory revenue - Braemar521 — — 521 521 — — 521 
Hotel management fees:
Base management fees— 34,072 — 34,072 — 21,291 — 21,291 
Incentive management fees— 8,533 — 8,533 — 4,969 — 4,969 
Other management fees— 3,943 — 3,943 — — — — 
Design and construction fees— 22,167 — 22,167 — 9,557 — 9,557 
Audio visual— 121,261 — 121,261 — 49,880 — 49,880 
Other157 44,155 — 44,312 81 47,248 — 47,329 
Cost reimbursement revenue28,809 319,975 12,979 361,763 26,968 174,398 2,609 203,975 
Total revenues77,347 554,106 12,979 644,432 74,615 307,343 2,609 384,567 
EXPENSES
Salaries and benefits— 41,341 32,124 73,465 — 28,590 31,131 59,721 
Deferred compensation plans— 65 (542)(477)— 70 1,601 1,671 
Stock/unit-based compensation— 324 3,721 4,045 — 520 4,033 4,553 
Cost of audio visual revenues— 84,986 — 84,986 — 38,243 — 38,243 
Cost of design and construction revenues— 8,359 — 8,359 — 4,105 — 4,105 
Depreciation and amortization3,410 27,953 403 31,766 4,039 27,966 593 32,598 
General and administrative— 26,017 7,475 33,492 — 16,373 9,221 25,594 
Impairment— — — — — 1,160 — 1,160 
Other2,828 22,970 30 25,828 645 17,555 (1)18,199 
Reimbursed expenses12,576 319,714 12,979 345,269 8,271 173,978 2,609 184,858 
REIT stock/unit-based compensation15,845 261 — 16,106 18,678 420 — 19,098 
Total operating expenses34,659 531,990 56,190 622,839 31,633 308,980 49,187 389,800 
OPERATING INCOME (LOSS)42,688 22,116 (43,211)21,593 42,982 (1,637)(46,578)(5,233)
Other— (4,086)(6,054)(10,140)— (4,517)(1,230)(5,747)
INCOME (LOSS) BEFORE INCOME TAXES42,688 18,030 (49,265)11,453 42,982 (6,154)(47,808)(10,980)
Income tax (expense) benefit(10,406)(7,950)9,826 (8,530)(10,097)(1,339)11,598 162 
NET INCOME (LOSS)32,282 10,080 (39,439)2,923 32,885 (7,493)(36,210)(10,818)
(Income) loss from consolidated entities attributable to noncontrolling interests— 1,171 — 1,171 — 678 — 678 
Net (income) loss attributable to redeemable noncontrolling interests— — (448)(448)— 152 63 215 
NET INCOME (LOSS) ATTRIBUTABLE TO THE COMPANY32,282 11,251 (39,887)3,646 32,885 (6,663)(36,147)(9,925)
Preferred dividends, declared and undeclared— — (36,458)(36,458)— — (35,000)(35,000)
Amortization of preferred stock discount— — — — — — (1,053)(1,053)
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS$32,282 $11,251 $(76,345)$(32,812)$32,885 $(6,663)$(72,200)$(45,978)
(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)
Year Ended December 31, 2022Year Ended December 31, 2021
REIT AdvisoryProducts & ServicesCorporate/ OtherAshford Inc. ConsolidatedREIT AdvisoryProducts & ServicesCorporate/ OtherAshford Inc. Consolidated
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS$32,282 $11,251 $(76,345)$(32,812)$32,885 $(6,663)$(72,200)$(45,978)
Preferred dividends, declared and undeclared— — 36,458 36,458 — — 35,000 35,000 
Amortization of preferred stock discount— — — — — — 1,053 1,053 
NET INCOME (LOSS) ATTRIBUTABLE TO THE COMPANY32,282 11,251 (39,887)3,646 32,885 (6,663)(36,147)(9,925)
Interest expense— 4,437 5,560 9,997 — 4,053 1,097 5,150 
Amortization of loan costs— 182 579 761 — 207 120 327 
Depreciation and amortization3,410 33,245 403 37,058 4,039 32,977 593 37,609 
Income tax expense (benefit)10,406 7,950 (9,826)8,530 10,097 1,339 (11,598)(162)
Net income (loss) attributable to unitholders redeemable noncontrolling interests— — 448 448 — — (63)(63)
EBITDA46,098 57,065 (42,723)60,440 47,021 31,913 (45,998)32,936 
Deferred compensation plans— 65 (542)(477)— 70 1,601 1,671 
Stock/unit-based compensation— 397 3,720 4,117 — 831 4,118 4,949 
Change in contingent consideration fair value— 650 — 650 — 22 — 22 
Transaction costs— 2,528 (77)2,451 — 968 2,456 3,424 
Loss on disposal of assets2,828 224 — 3,052 645 950 — 1,595 
Reimbursed software costs, net(386)— — (386)(507)— — (507)
Legal, advisory and settlement costs— 47 1,251 1,298 — 391 1,429 1,820 
Severance and executive recruiting costs— 174 2,294 2,468 — 143 1,187 1,330 
Amortization of hotel signing fees and lock subsidies— 596 — 596 — 518 — 518 
Other (gain) loss— 1,389 87 1,476 — (475)(78)(553)
Impairment— — — — — 1,160 — 1,160 
Adjusted EBITDA48,540 63,135 (35,990)75,685 47,159 36,491 (35,285)48,365 
Interest expense— (4,437)(5,560)(9,997)— (4,053)(1,097)(5,150)
Non-cash interest from finance lease— 733 — 733 — 643 — 643 
Adjusted income tax (expense) benefit(12,350)(11,998)11,560 (12,788)(11,978)(5,691)12,776 (4,893)
Adjusted net income (loss) available to common stockholders, unitholders and Series D convertible preferred stockholders on an "as converted" basis$36,190 $47,433 $(29,990)$53,633 $35,181 $27,390 $(23,606)$38,965 
INCOME (LOSS) PER SHARE - DILUTED
Net income (loss) per diluted share attributable to common stockholders (1)
$11.07 $3.86 $(26.19)$(11.26)$11.93 $(2.42)$(26.20)$(16.68)
Weighted average common shares outstanding - diluted2,915 2,915 2,915 2,915 2,756 2,756 2,756 2,756 
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)
$4.64 $6.09 $(3.85)$6.88 $4.70 $3.66 $(3.15)$5.20 
Weighted average diluted shares7,793 7,793 7,793 7,793 7,492 7,492 7,492 7,492 
(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 December 31, 2022
RemingtonPremierINSPIREREDOpenKey
Other (1)
Products & Services
REVENUE
Hotel management fees:
Base management fees$9,129 $— $— $— $— $— $9,129 
Incentive management fees2,420 — — — — — 2,420 
Other management fees1,525 — — — — — 1,525 
Design and construction fees— 6,629 — — — — 6,629 
Audio visual— — 34,160 — — — 34,160 
Other— — — 5,972 300 3,996 10,268 
Cost reimbursement revenue88,299 2,725 23 — — 91,056 
Total revenues101,373 9,354 34,183 5,981 300 3,996 155,187 
EXPENSES
Salaries and benefits5,011 594 4,527 1,169 972 283 12,556 
Deferred compensation plans— — — 12 — — 12 
Stock/unit-based compensation24 20 — — 54 
Cost of audio visual revenues— — 23,944 — — — 23,944 
Cost of design and construction revenues— 2,454 — — — — 2,454 
Depreciation and amortization3,255 2,985 445 155 262 7,105 
General and administrative1,665 838 2,667 1,639 697 183 7,689 
Other498 — — 3,302 65 2,955 6,820 
Reimbursed expenses88,285 2,699 16 — — 91,009 
REIT stock/unit-based compensation14 26 — — — 47 
Total operating expenses98,752 9,616 31,611 6,291 1,737 3,683 151,690 
OPERATING INCOME (LOSS)2,621 (262)2,572 (310)(1,437)313 3,497 
Other(47)— (214)(249)— (242)(752)
INCOME (LOSS) BEFORE INCOME TAXES2,574 (262)2,358 (559)(1,437)71 2,745 
Income tax (expense) benefit(1,594)150 (755)123 — (179)(2,255)
NET INCOME (LOSS)980 (112)1,603 (436)(1,437)(108)490 
(Income) loss from consolidated entities attributable to noncontrolling interests— — — — 328 13 341 
NET INCOME (LOSS) ATTRIBUTABLE TO THE COMPANY$980 $(112)$1,603 $(436)$(1,109)$(95)$831 
Interest expense— — 401 232 — 522 1,155 
Amortization of loan costs— — 36 11 — — 47 
Depreciation and amortization3,255 2,985 1,617 523 (27)8,355 
Income tax expense (benefit)1,594 (150)755 (123)— 179 2,255 
EBITDA5,829 2,723 4,412 207 (1,107)579 12,643 
Deferred compensation plans— — — 12 — — 12 
Stock/unit-based compensation25 20 — — 55 
Change in contingent consideration fair value350 — — — — — 350 
Transaction costs542 — — 209 — — 751 
Loss on disposal of assets— — 99 — — 108 
Legal, advisory and settlement costs— — 50 — — 53 
Severance and executive recruiting costs19 — — — — — 19 
Amortization of hotel signing fees and lock subsidies— — 66 — 19 — 85 
Other (gain) loss44 — 32 — — 1,244 1,320 
Adjusted EBITDA6,812 2,743 4,614 492 (1,088)1,823 15,396 
Interest expense— — (401)(232)— (522)(1,155)
Non-cash interest from finance lease— — — — — 246 246 
Adjusted income tax (expense) benefit(1,281)(884)(471)323 — (423)(2,736)
Adjusted net income (loss) available to common stockholders, unitholders and Series D convertible preferred stockholders on an "as converted" basis$5,531 $1,859 $3,742 $583 $(1,088)$1,124 $11,751 
INCOME (LOSS) PER SHARE - DILUTED
Net income (loss) per diluted share attributable to common stockholders (2)
$0.33 $(0.04)$0.54 $(0.15)$(0.37)$(0.03)$0.28 
Weighted average common shares outstanding - diluted2,968 2,968 2,968 2,968 2,968 2,968 2,968 
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 (2)
$0.69 $0.23 $0.47 $0.07 $(0.14)$0.14 $1.47 
Weighted average diluted shares7,976 7,976 7,976 7,976 7,976 7,976 7,976 
(1) Represents Pure Wellness, Lismore Capital and Marietta Leasehold L.P. Marietta Leasehold L.P. was acquired by Ashford Hospitality Trust, Inc. on December 16, 2022.
(2) The sum of net income (loss) per diluted share and adjusted net income (loss) per diluted share, as calculated for the subsidiaries, may differ from the Products & Services total due to rounding.
14


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 December 31, 2021
RemingtonPremierINSPIREREDOpenKey
Other (1)
Products & Services
REVENUE
Hotel management fees:
Base management fees$5,960 $— $— $— $— $— $5,960 
Incentive management fees1,563 — — — — — 1,563 
Design and construction fees— 3,946 — — — — 3,946 
Audio visual— — 21,710 — — — 21,710 
Other— — — 5,708 529 5,173 11,410 
Cost reimbursement revenue57,232 1,046 20 — — — 58,298 
Total revenues64,755 4,992 21,730 5,708 529 5,173 102,887 
EXPENSES
Salaries and benefits3,707 716 2,969 689 592 224 8,897 
Deferred compensation plans— — — 70 — — 70 
Stock/unit-based compensation38 17 18 — — 77 
Cost of audio visual revenues— — 15,632 — — — 15,632 
Cost of design and construction revenues— 1,293 — — — — 1,293 
Depreciation and amortization3,037 3,059 472 109 326 7,006 
General and administrative410 598 1,945 1,119 491 130 4,693 
Other— 19 — 3,125 153 1,501 4,798 
Reimbursed expenses57,182 1,004 — — — — 58,186 
REIT stock/unit-based compensation50 42 20 — — — 112 
Total operating expenses64,424 6,748 21,056 5,116 1,239 2,181 100,764 
OPERATING INCOME (LOSS)331 (1,756)674 592 (710)2,992 2,123 
Other72 — (438)(248)(593)(1,199)
INCOME (LOSS) BEFORE INCOME TAXES403 (1,756)236 344 (702)2,399 924 
Income tax (expense) benefit(274)366 (101)146 — (485)(348)
NET INCOME (LOSS)129 (1,390)135 490 (702)1,914 576 
(Income) loss from consolidated entities attributable to noncontrolling interests— — — 173 (5)169 
NET INCOME (LOSS) ATTRIBUTABLE TO THE COMPANY$129 $(1,390)$135 $491 $(529)$1,909 $745 
Interest expense— — 240 162 — 638 1,040 
Amortization of loan costs— — 34 57 — — 91 
Depreciation and amortization3,037 3,059 1,676 296 54 8,125 
Income tax expense (benefit)274 (366)101 (146)— 485 348 
EBITDA3,440 1,303 2,186 860 (526)3,086 10,349 
Stock/unit-based compensation35 17 18 — — — 70 
Deferred compensation plans— — — 70 — — 70 
Transaction costs— 407 18 — — 427 
Loss on disposal of assets— — 193 79 — — 272 
Legal, advisory and settlement costs28 — 58 — — — 86 
Severance and executive recruiting costs17 — — — — — 17 
Amortization of hotel signing fees and lock subsidies— — 133 — — 141 
Other (gain) loss— — 52 — — — 52 
Adjusted EBITDA3,522 1,320 3,047 1,027 (518)3,086 11,484 
Interest expense— — (240)(162)— (638)(1,040)
Non-cash interest from finance lease— — — — — 142 142 
Adjusted income tax (expense) benefit(752)(164)(124)239 — (517)(1,318)
Adjusted net income (loss) available to common stockholders, unitholders and Series D convertible preferred stockholders on an "as converted" basis$2,770 $1,156 $2,683 $1,104 $(518)$2,073 $9,268 
INCOME (LOSS) PER SHARE - DILUTED
Net income (loss) per diluted share attributable to common stockholders (2)
$0.05 $(0.50)$0.05 $0.18 $(0.19)$0.69 $0.27 
Weighted average common shares outstanding - diluted2,785 2,785 2,785 2,785 2,785 2,785 2,785 
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 (2)
$0.36 $0.15 $0.35 $0.14 $(0.07)$0.27 $1.22 
Weighted average diluted shares7,623 7,623 7,623 7,623 7,623 7,623 7,623 
(1) Represents Pure Wellness, Lismore Capital, Marietta Leasehold L.P. Marietta Leasehold L.P. was acquired by Ashford Hospitality Trust, Inc. on December 16, 2022.
(2) The sum of net income (loss) per diluted share and adjusted net income (loss) per diluted share, as calculated for the subsidiaries, may differ from the Products & Services total due to rounding.
15


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)
Year Ended December 31, 2022
RemingtonPremierINSPIREREDOpenKey
Other (1)
Products & Services
REVENUE
Hotel management fees:
Base management fees$34,072 $— $— $— $— $— $34,072 
Incentive management fees8,533 — — — — — 8,533 
Other management fees3,943 — — — — — 3,943 
Design and construction fees— 22,167 — — — — 22,167 
Audio visual— — 121,261 — — — 121,261 
Other181 — — 26,309 1,480 16,185 44,155 
Cost reimbursement revenue309,706 10,080 157 26 319,975 
Total revenues356,435 32,247 121,418 26,335 1,484 16,187 554,106 
EXPENSES
Salaries and benefits18,931 2,139 13,084 3,283 2,873 1,031 41,341 
Deferred compensation plans— — — 65 — — 65 
Stock/unit-based compensation185 72 49 18 — — 324 
Cost of audio visual revenues— — 84,986 — — — 84,986 
Cost of design and construction revenues— 8,359 — — — — 8,359 
Depreciation and amortization12,362 11,899 1,803 656 12 1,221 27,953 
General and administrative4,500 3,123 9,401 5,617 2,603 773 26,017 
Other798 — — 13,777 282 8,113 22,970 
Reimbursed expenses309,626 9,962 94 26 319,714 
REIT stock/unit-based compensation80 118 63 — — — 261 
Total operating expenses346,482 35,672 109,480 23,442 5,774 11,140 531,990 
OPERATING INCOME (LOSS)9,953 (3,425)11,938 2,893 (4,290)5,047 22,116 
Other42 — (1,262)(868)(2,002)(4,086)
INCOME (LOSS) BEFORE INCOME TAXES9,995 (3,425)10,676 2,025 (4,286)3,045 18,030 
Income tax (expense) benefit(1,845)(528)(4,073)(557)— (947)(7,950)
NET INCOME (LOSS)8,150 (3,953)6,603 1,468 (4,286)2,098 10,080 
(Income) loss from consolidated entities attributable to noncontrolling interests— — — — 1,005 166 1,171 
NET INCOME (LOSS) ATTRIBUTABLE TO THE COMPANY$8,150 $(3,953)$6,603 $1,468 $(3,281)$2,264 $11,251 
Interest expense— — 1,262 769 — 2,406 4,437 
Amortization of loan costs— — 130 52 — — 182 
Depreciation and amortization12,362 11,899 6,660 2,010 305 33,245 
Income tax expense (benefit)1,845 528 4,073 557 — 947 7,950 
EBITDA22,357 8,474 18,728 4,856 (3,272)5,922 57,065 
Deferred compensation plans— — — 65 — — 65 
Stock/unit-based compensation258 72 49 18 — — 397 
Change in contingent consideration fair value650 — — — — — 650 
Transaction costs1,929 — 55 544 — — 2,528 
Loss on disposal of assets— — 167 48 — 224 
Legal, advisory and settlement costs12 — (60)95 — — 47 
Severance and executive recruiting costs69 77 19 — 174 
Amortization of hotel signing fees and lock subsidies— — 556 — 40 — 596 
Other (gain) loss13 87 45 — — 1,244 1,389 
Adjusted EBITDA25,288 8,710 19,559 5,595 (3,183)7,166 63,135 
Interest expense— — (1,262)(769)— (2,406)(4,437)
Non-cash interest from finance lease— — — — — 733 733 
Adjusted income tax (expense) benefit(5,007)(2,468)(3,155)(90)— (1,278)(11,998)
Adjusted net income (loss) available to common stockholders, unitholders and Series D convertible preferred stockholders on an "as converted" basis$20,281 $6,242 $15,142 $4,736 $(3,183)$4,215 $47,433 
INCOME (LOSS) PER SHARE - DILUTED
Net income (loss) per diluted share attributable to common stockholders (2)
$2.80 $(1.36)$2.27 $0.50 $(1.13)$0.78 $3.86 
Weighted average common shares outstanding - diluted2,915 2,915 2,915 2,915 2,915 2,915 2,915 
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 (2)
$2.60 $0.80 $1.94 $0.61 $(0.41)$0.54 $6.09 
Weighted average diluted shares7,793 7,793 7,793 7,793 7,793 7,793 7,793 
(1) Represents Pure Wellness, Lismore Capital and Marietta Leasehold L.P. Marietta Leasehold L.P. was acquired by Ashford Hospitality Trust, Inc. on December 16, 2022.
(2) The sum of net income (loss) per diluted share and adjusted net income (loss) per diluted share, as calculated for the subsidiaries, may differ from the Products & Services total due to rounding.
16


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)
Year Ended December 31, 2021
RemingtonPremierINSPIREREDOpenKey
Other (1)
Products & Services
REVENUE
Hotel management fees:
Base management fees$21,291 $— $— $— $— $— $21,291 
Incentive management fees4,969 — — — — — 4,969 
Design and construction fees— 9,557 — — — — 9,557 
Audio visual— — 49,880 — — — 49,880 
Other20 — — 23,867 1,965 21,396 47,248 
Cost reimbursement revenue171,522 2,856 20 — — — 174,398 
Total revenues197,802 12,413 49,900 23,867 1,965 21,396 307,343 
EXPENSES
Salaries and benefits12,309 2,981 7,732 2,394 2,349 825 28,590 
Deferred compensation plans— — — 70 — — 70 
Stock/unit-based compensation335 64 104 12 — 520 
Cost of audio visual revenues— — 38,243 — — — 38,243 
Cost of design and construction revenues— 4,105 — — — — 4,105 
Depreciation and amortization12,141 12,230 1,880 400 15 1,300 27,966 
General and administrative1,881 1,677 6,127 4,080 2,204 404 16,373 
Impairment— — 1,160 — — — 1,160 
Other— 19 22 11,991 612 4,911 17,555 
Reimbursed expenses171,288 2,690 — — — — 173,978 
REIT stock/unit-based compensation234 166 20 — — — 420 
Total operating expenses198,188 23,932 55,288 18,947 5,185 7,440 308,980 
OPERATING INCOME (LOSS)(386)(11,519)(5,388)4,920 (3,220)13,956 (1,637)
Other145 — (1,186)(961)(2,522)(4,517)
INCOME (LOSS) BEFORE INCOME TAXES(241)(11,519)(6,574)3,959 (3,213)11,434 (6,154)
Income tax (expense) benefit(1,406)2,414 1,326 (1,025)— (2,648)(1,339)
NET INCOME (LOSS)(1,647)(9,105)(5,248)2,934 (3,213)8,786 (7,493)
(Income) loss from consolidated entities attributable to noncontrolling interests— — — (51)799 (70)678 
Net (income) loss attributable to redeemable noncontrolling interests— — — — 152 — 152 
NET INCOME (LOSS) ATTRIBUTABLE TO THE COMPANY$(1,647)$(9,105)$(5,248)$2,883 $(2,262)$8,716 $(6,663)
Interest expense— — 876 616 — 2,561 4,053 
Amortization of loan costs— — 121 86 — — 207 
Depreciation and amortization12,141 12,230 6,830 1,275 11 490 32,977 
Income tax expense (benefit)1,406 (2,414)(1,326)1,025 — 2,648 1,339 
EBITDA11,900 711 1,253 5,885 (2,251)14,415 31,913 
Stock/unit-based compensation696 64 68 — — 831 
Deferred compensation plans— — — 70 — — 70 
Change in contingent consideration fair value— — 22 — — — 22 
Transaction costs161 — 483 324 — — 968 
Loss on disposal of assets— — 897 53 — — 950 
Legal, advisory and settlement costs53 — 338 — — — 391 
Severance and executive recruiting costs96 — — 39 — 143 
Amortization of hotel signing fees and lock subsidies— — 488 — 30 — 518 
Other (gain) loss(375)114 (213)— (1)— (475)
Impairment— — 1,160 — — — 1,160 
Adjusted EBITDA12,531 889 4,496 6,340 (2,180)14,415 36,491 
Interest expense— — (876)(616)— (2,561)(4,053)
Non-cash interest from finance lease— — — — — 643 643 
Adjusted income tax (expense) benefit(2,522)(340)407 (150)— (3,086)(5,691)
Adjusted net income (loss) available to common stockholders, unitholders and Series D convertible preferred stockholders on an "as converted" basis$10,009 $549 $4,027 $5,574 $(2,180)$9,411 $27,390 
INCOME (LOSS) PER SHARE - DILUTED
Net income (loss) per diluted share attributable to common stockholders (2)
$(0.60)$(3.30)$(1.90)$1.05 $(0.82)$3.16 $(2.42)
Weighted average common shares outstanding - diluted2,756 2,756 2,756 2,756 2,756 2,756 2,756 
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 (2)
$1.34 $0.07 $0.54 $0.74 $(0.29)$1.26 $3.66 
Weighted average diluted shares7,492 7,492 7,492 7,492 7,492 7,492 7,492 
(1) Represents Pure Wellness, Lismore Capital and Marietta Leasehold L.P. Marietta Leasehold L.P. was acquired by Ashford Hospitality Trust, Inc. on December 16, 2022.
(2) The sum of net income (loss) per diluted share and adjusted net income (loss) per diluted share, as calculated for the subsidiaries, may differ from the Products & Services total due to rounding.
17




ASHFORD INC. AND SUBSIDIARIES
RECONCILIATION OF NET INCOME (LOSS) TO EBITDA AND ADJUSTED EBITDA
(unaudited, in thousands)

2022202220222022December 31, 2022
 4th Quarter3rd Quarter2nd Quarter1st QuarterTTM
Net income (loss)$(1,978)$(1,103)$5,325 $679 $2,923 
(Income) loss from consolidated entities attributable to noncontrolling interests341 272 298 260 1,171 
Net (income) loss attributable to redeemable noncontrolling interests(158)(158)(141)(448)
Net income (loss) attributable to the company(1,795)(989)5,482 948 3,646 
Interest expense3,214 2,967 2,537 1,279 9,997 
Amortization of loan costs237 219 232 73 761 
Depreciation and amortization9,276 9,603 9,297 8,882 37,058 
Income tax expense (benefit)2,559 617 4,076 1,278 8,530 
Net income (loss) attributable to unitholders redeemable noncontrolling interests158 158 141 (9)448 
EBITDA13,649 12,575 21,765 12,451 60,440 
Deferred compensation plans90 (78)(600)111 (477)
Stock/unit-based compensation454 1,912 920 831 4,117 
Change in contingent consideration fair value350 300 — — 650 
Transaction costs113 501 1,308 529 2,451 
Loss on disposal of assets2,230 58 10 754 3,052 
Reimbursed software costs, net(74)(75)(94)(143)(386)
Legal, advisory and settlement costs135 300 751 112 1,298 
Severance and executive recruiting costs1,009 731 368 360 2,468 
Amortization of hotel signing fees and lock subsidies85 160 199 152 596 
Other (gain) loss1,320 27 291 (162)1,476 
Adjusted EBITDA$19,361 $16,411 $24,918 $14,995 $75,685 
18