Playa Hotels & Resorts (NASDAQ: PLYA) reported Q1 EPS of $0.36, $0.18 better than the analyst estimate of $0.18. Revenue for the quarter came in at $195.8 million versus the consensus estimate of $181.6 million.

• Net Income was $43.0 million compared to $21.8 million in 2018
• Adjusted Net Income was $46.9 million compared to $35.1 million in 2018
• Net Package RevPAR decreased 10.7% over 2018 to $244.20, driven by a 2.4% decrease in Net Package ADR and a 750 basis points decrease in Occupancy
• Comparable Net Package RevPAR decreased 5.3% over 2018 to $264.55, driven by a 1.3% decrease in Net Package ADR and a 360 basis points decrease in Occupancy
• Owned Resort EBITDA decreased 0.3% over 2018 to $82.4 million
• Owned Resort EBITDA Margin decreased 4.1 percentage points over 2018 to 43.8%
• Adjusted EBITDA increased 0.3% over 2018 to $74.8 million
• Adjusted EBITDA Margin decreased 3.5 percentage points over 2018 to 39.6%

“Despite the unfavorable holiday shift, supply growth in a few key markets, and the last vestiges of group cancellations in Cabo, we exceeded the high-end of our implied first quarter EBITDA outlook primarily on higher property-level margins as proactive changes by our new regional management teams, and the power of our all-inclusive resort model enabled us to better flex our property-level costs during our peak season, more than offsetting the negative effects of the unfavorable shift in the timing of the Easter holiday.

With the holiday shift now behind us, we expect demand patterns and results to return to more normalized trends in May and beyond, and we are reiterating our full year outlook. We are just six short months away from the unveiling of five U.S. brand affiliated flagship resorts, which will attract new and repeat lower-cost-of- acquisition guests, while diversifying our cash flow streams, and once again drive returns in excess of our cost of capital.

I couldn't be more excited to introduce our loyal and future guests to these new Hyatt and Hilton all-inclusive experiences. I believe the growth in our EBITDA, combined with the diversification in our cash flow streams, the inflection in our free cash flow, and subsequent deleveraging, will be transformative for both our company, and the price of our shares.”

– Bruce D. Wardinski, Chairman and CEO of Playa Hotels & Resorts

Our 2019 outlook is predicated on the following assumptions:

• Comparable revenue growth: slightly negative to slightly positive;
• $25 - $30 million of forgone EBITDA owing to the rebranding and renovations at the Hilton La Romana All- Inclusive Resorts and the Hilton Playa del Carmen All-Inclusive Resort;
• $3 million in incremental electricity costs year-over-year;
• $1 - $2 million in incremental property-level environmental taxes and minimum wage related increases;
• A full year contribution from the Sagicor portfolio, which we acquired in June of 2018;
• Potential future acquisitions, dispositions, or management agreement changes are explicitly excluded from our outlook.
• The Company is unable to provide a reconciliation of our 2019 Adjusted EBITDA outlook to our anticipated 2019U.S. GAAP net income as we are unable to reasonably estimate the impact of our income tax provision, which could be significantly impacted by several factors including future fluctuations in foreign currencies.

For earnings history and earnings-related data on Playa Hotels & Resorts (PLYA) click here.