GreenTree Hospitality Group Ltd. (GHG) Reports Q4 EPS of $0.18 on Revenues of $41.57M; Expects 1Q Revenue Decline of 30%-35% and FY20 Revenue Decline of 10%-15%

GreenTree Hospitality Group Ltd. (NYSE: GHG) reported Q4 EPS of $0.18. Revenue for the quarter came in at $41.57 million.

• A total of 3,957 hotels with 290,026 hotel rooms were in operation as of December 31, 2019, compared to 3,102 hotels and 245,705 hotel rooms as of September 30, 2019, and compared to 2,757 hotels and 221,529 hotel rooms as of December 31, 2018.
• Total revenues increased 20.4% to RMB289.4 million (US$41.6 million) [1] for the fourth quarter of 2019. Total revenues increased 20.6% to RMB1,091.8 million (US$156.8 million)[2] for the full year 2019.
• Adjusted EBITDA (non-GAAP) increased 11.4% to RMB162.3million (US$23.3 million) [1] for the fourth quarter of 2019. Adjusted EBITDA (non-GAAP) increased 12.1% to RMB594.1 million (US$85.3 million)[1] for the full year 2019.
• Net income increased 48.9% to RMB74.5 million (US$10.7 million)[1] for the fourth quarter of 2019. Net income increased 17.9% to RMB437.8 million (US$62.9 million)[1] for the full year 2019.
• Core net income (non-GAAP) increased 15.8% to RMB129.9 million (US$18.7 million)[1] for the fourth quarter of 2019. Core net income (non-GAAP) increased 16.7% to RMB482.7 million (US$69.3 million)[1] for the full year 2019.
• Net income per ADS (basic and diluted) totaled RMB0.75 (US$0.11)[1] for the fourth quarter of 2019. Net income per ADS (basic and diluted) totaled RMB4.34 (US$0.62)[1] for the full year 2019.
• Core net income per ADS (basic and diluted) (non-GAAP) of the Company totaled RMB1.27 (US$0.18)[1] for the fourth quarter of 2019. Core net income per ADS (basic and diluted) (non-GAAP) totaled RMB4.73 (US$0.68)[1] for the full year 2019.
• The Company expects total revenue for the full year 2020 to decline 10%-15% from 2019, with consideration of COVID-19.

"Last year we completed a number of strategic investments which resulted in a number of joint venture investments for our Company," said Mr. Alex Xu, Chairman and Chief Executive Officer of GreenTree. "In Q4, we completed the merger of Urban Hotels in December, and restructured our development team. By year end, our pipeline growth had increased by 120% over 2018. During the first quarter of 2020, we have taken further initiatives to improve our technology for our users, to improve the health and safety of our hotels for our guests and employees, to refine our sales and marketing focus, and to provide flexible franchise terms and support. With these combined efforts, our hotels should be able to continue to outperform in 2020.

"No words can express our gratitude and appreciation for the sacrifices and hard work made by our employees and our franchisees during the COVID-19 crisis. We owe our deepest thanks to our employees, guests, medical professionals, police, firefighters, and community leaders for their heroic support during the crisis. Thanks to all of them, our operations are recovering rapidly.

"Our mission has always been to support our franchisees and employees, and to create value for our shareholders. With almost 4,000 hotels in operation and almost 1,000 under construction, our foundation is stronger, our pipeline is bigger, our teams are more focused, and we are better positioned to grow, in spite of the current crisis. We are confident that we will deliver another year of outstanding services to our guests and strong performance to our franchisees and shareholders."

Guidance

Due to the impact of COVID-19, the Company expects a decline in total revenues in the first quarter of 2020 of 30%-35% year-over-year (37-39% excluding the impact of newly consolidated companies), and a decline in total revenues of 10%-15% for the full year 2020, compared to 2019.

The guidance set forth above reflects the Company\'s current and preliminary view based on our recovery speed and may not be indicative of the final financial results for future interim periods and the full year.

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

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