NYSE$CLDT

Chatham Lodging Trust · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Chatham's Q3 2020 performance reflected resilience amidst the pandemic, with positive EBITDA and strategic asset management fortifying the balance sheet.

Chatham Lodging Trust announced Q3 2020 results, demonstrating resilience with positive EBITDA of $5.1 million and a strategic focus on balance sheet strength. RevPAR declined by 61% to $58 compared to Q3 2019, but showed a positive rebound from Q2 2020. The company is under contract to sell a hotel for $67 million, further enhancing liquidity.

  • Chatham achieved positive adjusted EBITDA of $5.1 million, a significant rebound from the previous quarter's loss.
  • RevPAR decreased by 61% year-over-year to $58, but improved compared to the second quarter of 2020.
  • The company maintained positive GOP margins of 36% despite the challenging environment.
  • A pending hotel sale is expected to generate $36 million in net proceeds, strengthening the balance sheet.

Headline financials

Total Revenue

$35M

Previous: $90.1M-61.2%
EPS (adj)

-$0.09

Previous: $0.60-115.0%
Capital Expenditures

-$13.9M

Previous: -$30.3M+54.2%
Free Cash Flow

-$32M

Previous: -$20.3M-57.1%
Net Income

-$18.1M

Previous: $10M-280.5%
Operating Income

-$10.2M

Previous: $19.9M-151.5%
Gross Profit

$13.1M

Previous: $44.2M-70.3%
Cash & Equivalents

$31.6M

Previous: $10.3M+207.8%
Total Assets

$1.43B

Previous: $1.45B-1.7%
Stock-Based Comp

$1.12M

Previous: $1.21M-7.2%

Revenue & EPS history

Chatham · Revenue · Quarterly

$35M

Q3 2020-61.2%vs Q3 2019
Beat estimate in 7 of 16 quarters(44%)
ActualEstimate

Forward guidance

Chatham anticipates continued recovery and is strategically managing its portfolio and liquidity to navigate the ongoing pandemic.

Tailwinds

  • The company expects to complete the renovation of the Residence Inn in Anaheim, Calif., in the fourth quarter, including the addition of a new bar.
  • Construction of the hotel in the Warner Center submarket of Los Angeles is ahead of schedule and expected to be completed in the 2021 fourth quarter.
  • Chatham closed on a $40.0 million construction loan for the Warner Center development.
  • The company has estimated liquidity of $109 million as of September 30, 2020.
  • Pro forma total liquidity will rise to $145 million upon completion of the sale of the Mission Valley Residence Inn.

Headwinds

  • The timing and shape of a RevPAR recovery is unknown.
  • All remaining renovations planned to commence later in 2020 have been deferred until at least 2021.
  • All remaining capital projects, other than the Warner Center development, have been suspended.
  • The company expects to spend approximately $1.7 million on capital expenditures for the last three months of 2020.
  • Defaults under the joint venture debt do not trigger cross-defaults under any Chatham debt.

Historical earnings impact

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

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q3 2020

Historical avgQ3 2020

-0.9%

Avg return

Earnings day

-0.3%

Avg return

5 days after

+0.2%

Avg return

30 days after

48%

30 / 63 earnings

Positive

+12.5%

Q1 2026

Best reaction

-21.4%

Q1 2020

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+12.5%+11.8%
Q4 2025+1.2%+4.5%+5.6%
Q3 2025+1.1%+5.3%+1.7%
Q1 2025+0.3%-0.4%-0.1%
Q4 2024+1.9%+0.5%-10.8%
Q3 2024+6.8%+9.5%+14.1%
Q2 2024-7.7%-9.2%-1.3%
Q1 2024+0.1%-1.6%-4.5%
Q4 2023+0.0%+1.3%-1.5%
Q3 2023+10.1%+5.7%+8.4%
Q2 2023-1.5%+2.0%+3.6%
Q1 2023+0.9%-0.5%-3.0%
Q4 2022-3.9%-7.1%-24.9%
Q3 2022-0.2%+8.3%+8.3%
Q2 2022+6.9%+7.6%-0.6%
Q1 2022-6.3%-13.1%-6.3%
Q4 2021-1.7%-5.8%-3.8%
Q3 2021+3.1%-0.2%-10.1%
Q2 2021-5.8%+0.5%+4.2%
Q1 2021-9.7%-7.3%-6.7%
Q4 2020+2.4%+3.7%+5.1%
Q3 2020+3.4%+12.2%+57.5%
Q2 2020+7.7%+21.8%+39.0%
Q1 2020-21.4%-26.6%+17.6%
Q4 2019-9.3%-8.0%-61.5%
Q3 2019+1.6%+2.1%+1.7%
Q2 2019-7.9%-9.2%-11.9%
Q1 2019+2.3%+3.6%-3.3%
Q4 2018-5.4%-8.2%-10.5%
Q3 2018-0.5%+1.5%+1.5%
Q2 2018+1.7%+0.7%-0.4%
Q1 2018-0.3%+1.9%+9.1%
Q4 2017-14.0%-14.0%-8.8%
Q3 2017+5.1%+5.9%+7.1%
Q2 2017-1.7%-0.7%-1.1%
Q1 2017+0.8%-1.9%+3.5%
Q4 2016-1.0%-1.7%-5.6%
Q3 2016-2.0%-0.4%+9.1%
Q2 2016-11.3%-7.5%-14.3%
Q1 2016+1.2%
Q4 2015+2.4%
Q3 2015-3.9%
Q2 2015-10.5%
Q1 2015-1.6%
Q4 2014-3.9%
Q3 2014-1.6%
Q2 2014+2.4%
Q1 2014+0.7%
Q4 2013+1.7%
Q3 2013+10.8%
Q2 2013+0.6%
Q1 2013-0.7%
Q4 2012-1.5%
Q3 2012+0.2%
Q2 2012+0.4%
Q1 2012+0.2%
Q4 2011+1.2%
Q3 2010-5.0%
Q3 2011-5.0%
Q4 2010-1.9%
Q2 2011-1.9%
Q2 2010-1.9%
Q1 2011-0.4%

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