UPDATE: GreenTree Hospitality Group Ltd. (GHG) Misses Q3 EPS by 1c, Revenues Beat; Maintains FY18 Revenue Growth Guidance of 20-25%

GreenTree Hospitality Group Ltd. (NYSE: GHG) reported Q3 EPS of $0.18, $0.01 worse than the analyst estimate of $0.19. Revenue for the quarter came in at $37.39 million versus the consensus estimate of $35.67 million.

• A total of 2,558 hotels with 209,463 hotel rooms were in operation as of September 30, 2018, as compared to 2,434 hotels and 201,275 hotel rooms as of June 30, 2018.
• Total revenues increased 21.6% year-over-year to RMB256.8 million (US$37.4 million) [1] for the third quarter of 2018. Total revenues increased 21.7% year-over-year to RMB695.1 million (US$101.2 million)[1] for the first nine months of 2018.
• Adjusted EBITDA (non-GAAP) increased 24.2% year-over-year to RMB156.5 million (US$22.8 million) [1] for the third quarter of 2018. Adjusted EBITDA (non-GAAP) increased 24.6% year-over-year to RMB409.2 million (US$59.6 million) [1] for the first nine months of 2018.
• Net income increased 36.3% year-over-year to RMB152.4 million (US$22.2 million)[1] for the third quarter of 2018. Net income increased 15.2% year-over-year to RMB339.8 million (US$49.5 million) [1] for the first nine months of 2018.
• Core net income (non-GAAP) increased 30.3% year-over-year to RMB125.3 million (US$ 18.2 million) [1] for the third quarter of 2018. Core net income (non-GAAP) increased 27.6% year-over-year to RMB320.1 million (US$46.6 million) [1] for the first nine months of 2018.
• Basic and diluted net income per ADS were RMB1.50 (US$0.22)[1] for the third quarter of 2018. Basic and diluted net income per ADS were RMB3.46 (US$0.50)[1] for the first nine months of 2018.
• Basic and diluted core net income per ADS (non-GAAP) were RMB1.23 (US$0.18)[1] for the third quarter of 2018. Basic and diluted core net income per ADS (non-GAAP) were RMB3.26 (US$0.47) [1] for the first nine months of 2018.
• As of September 30, 2018, the Company had a strong pipeline with a total of 504 hotels contracted for or under development. For the third quarter of 2018, the Company opened 145 F&M hotels and one L&O hotel, compared to 109 F&M hotels for the third quarter of 2017.
• The Company reaffirmed guidance for growth in full year 2018 total revenues of 20-25% from 2017.

"We remain committed to a steady and stable growth strategy as we explore the growing consumption trends in second and third tier cities and expand our geographical coverage across China, covering 278 cities at the end of September 2018, " commented Mr. Alex Xu, Chairman and Chief Executive Officer of GreenTree. "During the third quarter, we opened 146 new hotels and continued to grow our pipeline. We are on track to open more new hotels in the remaining part of this year. We also started to explore ways to grow our service apartment business recently. Finally, we remain interested in exploring appropriate value-enhancing acquisition opportunities to help strengthen our hotel platform and increase long-term shareholder value."

For earnings history and earnings-related data on GreenTree Hospitality Group Ltd. (GHG) click here.

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