NYSE$APLE

Apple Hospitality REIT Inc · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

Apple Hospitality's Q1 2020 results were impacted by the COVID-19 pandemic, with significant declines in revenue and occupancy.

Apple Hospitality REIT reported a decline in revenue and operating results for the first quarter of 2020 due to the COVID-19 pandemic. The company has taken measures to mitigate the impact, including cost reductions, enhanced sales efforts, and drawing down its revolving credit facility.

  • Average occupancy for comparable hotels declined from approximately 76% in February to below 20% by the end of March.
  • Average daily rate (ADR) declined approximately 30% for the month of April compared to April 2019.
  • The company has implemented cost elimination and efficiency initiatives, estimating a 65% reduction in portfolio-wide hotel operating costs in April 2020 compared to the initial forecast.
  • All 233 hotels were open and receiving reservations as of May 15, 2020, with operations consolidated at 38 hotels in market clusters to maximize efficiencies.

Headline financials

Total Revenue

$238M

Previous: $304M-21.7%
EPS (adj)

$0.17

Previous: $0.38-55.3%
ADR

$136.87

No prior period
Occupancy

70.4%

No prior period
RevPAR

$96.38

No prior period
Capital Expenditures

$0.00

Previous: -$52.6M+100.0%
Free Cash Flow

-$2.77M

Previous: -$14.4M+80.8%
Net Income

-$2.77M

Previous: $38.2M-107.3%
Operating Income

$12.9M

Previous: $53.9M-76.0%
Gross Profit

$82.7M

Previous: $128M-35.5%
Cash & Equivalents

$437M

Previous: $0.00
Total Assets

$5.31B

Previous: $5.02B+5.6%

Revenue & EPS history

Apple Hospitality · Revenue · Quarterly

$238M

Q1 2020-21.7%vs Q1 2019
Beat estimate in 6 of 16 quarters(38%)
ActualEstimate

Revenue by segment

Apple Hospitality · $262M total across 2 segments · Q1 2020

  • Room Revenue
    $240M
  • Food & Beverage
    $21.9M

Forward guidance

Given the uncertainties related to the depth and duration of the COVID-19 pandemic and its impact on the travel industry and hotel operations, the Company does not expect to issue new guidance until operating fundamentals begin to stabilize.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2020

Historical avgQ1 2020

-0.2%

Avg return

Earnings day

+0.2%

Avg return

5 days after

+0.3%

Avg return

30 days after

47%

20 / 43 earnings

Positive

+19.1%

Q1 2020

Best reaction

-9.0%

Q4 2019

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-1.9%+5.5%+13.4%
Q4 2025-1.0%+0.4%-2.5%
Q3 2025-1.9%+2.3%+1.4%
Q1 2025-0.1%-3.1%-1.1%
Q4 2024-1.6%+1.3%-11.1%
Q3 2024+0.5%+8.5%+9.6%
Q2 2024-3.1%-3.0%-2.8%
Q1 2024+1.2%+1.1%-2.5%
Q4 2023+0.3%-1.2%+1.7%
Q3 2023-6.0%-5.3%+0.9%
Q2 2023+0.1%+0.8%+0.1%
Q1 2023+1.4%+4.2%-0.7%
Q4 2022-2.4%-1.9%-18.6%
Q3 2022-2.7%+1.6%+2.3%
Q2 2022-0.8%-0.4%-6.5%
Q1 2022-3.4%-5.1%-2.8%
Q4 2021-3.8%+1.5%+1.1%
Q3 2021+0.4%-1.9%-9.6%
Q2 2021+4.8%+3.6%+6.1%
Q1 2021+1.4%-2.1%+3.1%
Q4 2020+0.6%-4.1%+0.5%
Q3 2020+1.0%+16.1%+24.7%
Q2 2020+5.5%+11.1%+21.8%
Q1 2020+19.1%+12.1%+32.5%
Q4 2019-9.0%-13.4%-38.6%
Q3 2019+0.9%-1.0%-3.9%
Q2 2019+0.2%+1.7%+5.5%
Q1 2019-0.5%-0.1%-4.7%
Q4 2018-0.2%-1.6%-2.5%
Q3 2018-2.2%+0.4%-2.9%
Q2 2018-0.2%-3.5%-1.3%
Q1 2018+0.5%+1.0%+3.9%
Q4 2017-1.1%-4.9%-6.2%
Q3 2017+1.0%+1.4%+3.1%
Q2 2017-1.5%-1.7%+0.4%
Q1 2017+0.9%-2.1%-0.7%
Q4 2016-2.7%-5.6%-7.0%
Q3 2016+0.6%-1.0%+11.5%
Q2 2016-0.5%-2.1%-7.5%
Q1 2016+0.5%
Q4 2015-4.4%
Q3 2015+2.3%
Q2 2015+0.0%
Q1 2015
Q4 2014
Q3 2014
Q2 2014
Q1 2014
Q4 2013
Q3 2013
Q2 2013
Q1 2013
Q4 2012
Q3 2012
Q2 2012
Q1 2012
Q4 2011
Q3 2011
Q2 2011
Q1 2011
Q4 2010
Q3 2010
Q2 2010
Q1 2010

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