Belmond Results

Belmond Ltd. Reports First Quarter 2018 Results

Net losses attributable to Belmond Ltd. of $15.0 million, compared with net losses of $18.1 million for the prior-year quarter - Adjusted net losses from continuing operations of $18.3 million, compared with adjusted net losses of $16.8 million for the prior-year quarter

Belmond

Belmond Ltd. (NYSE: BEL), owners, part-owners or managers of 46 luxury hotel, restaurant, train and river cruise properties, which operate in 24 countries, today announced its results for the first quarter ended March 31, 2018.

Roeland Vos, president and chief executive officer, remarked: “I am encouraged by the performance posted in the first quarter. This is seasonally our smallest revenue-generating period, and with two of our properties closed that would normally contribute, the reported results came in slightly behind the prior-year quarter. That said, same store RevPAR growth of 10% serves as a helpful indicator of our performance across the remainder of the portfolio, and on a constant currency basis this translates to growth of 7%, which is slightly ahead of the guidance we provided earlier in the year.

Our underlying operational performance remained strong, as we continued to build on the solid foundations that were put in place last year. Excluding the two properties that were closed, Belmond La Samanna and '21' Club, both revenue and adjusted EBITDA were ahead of the same period last year by 9% and 22%, respectively.

As we look ahead, confirmed bookings for the remainder of the year are being secured at a faster pace than last year for almost all of our properties. We believe this acceleration is being fueled by the enhancements we have made to our commercial operation, as well as the strategic reinvestments we have made to improve our existing portfolio. As brand momentum continues to build, and with our new website in place, we expect all of these factors to be key drivers of our organic growth, particularly in the seasonally significant second and third quarters.

Meanwhile, we have maintained our focus on the execution of our long term strategic plan, which includes footprint expansion. To that end, we were pleased to announce the acquisition of the stunning historic Castello di Casole in rural Tuscany earlier this quarter, and look forward to assuming management control of the resort in May.

For all of these reasons, and bolstered by our ongoing marketing and PR initiatives, I feel confident about the year ahead. We are maintaining our guidance for full year 2018 same store, constant currency RevPAR growth for our owned hotels of between 2% and 6%, with additional revenue upside in our trains and cruises businesses. We expect to finish 2018 with full year adjusted EBITDA of between $140.0 million and $150.0 million, representing growth of between 13% and 21% over last year."

First Quarter 2018 Operating Results

Revenue for the first quarter of 2018 was $89.7 million, a $5.7 million decrease from revenue for the first quarter of 2017. In constant currency, revenue for the first quarter of 2018 decreased $7.2 million from the first quarter of 2017. The year-over-year decrease comes from Belmond La Samanna, St. Martin and '21' Club, New York, which were both closed during the first quarter of 2018 following hurricane and water damage, and had contributed combined revenues of $12.3 million in the first quarter of 2017. Excluding these two properties, revenue across the rest of the portfolio increased by $5.1 million or 5% over the first quarter of 2017.

Net losses attributable to Belmond Ltd. for the first quarter of 2018 were $15.0 million ($0.15 per common share), which compared to net losses attributable to Belmond Ltd. of $18.1 million ($0.18 per common share) for the first quarter of 2017.

Adjusted net losses from continuing operations for the first quarter of 2018 were $18.3 million ($0.18 per common share), compared to adjusted net losses from continuing operations of $16.8 million ($0.16 per common share) for the first quarter of 2017.

Same store RevPAR for owned hotels for the first quarter of 2018 increased 10% from the prior-year quarter. On a constant currency basis, same store RevPAR for owned hotels increased 7% from the prior-year quarter as a result of a one percentage point increase in occupancy and a 4% increase in average daily rate ("ADR").

Adjusted EBITDA for the first quarter of 2018 was a loss of $2.2 million, compared to an adjusted EBITDA loss of $0.5 million for the first quarter of 2017. In constant currency, adjusted EBITDA for the first quarter of 2018 was up $0.6 million compared to the first quarter of 2017. Additionally, the prior year quarter included adjusted EBITDA of $2.4 million from Belmond La Samanna and '21' Club which were closed in the first quarter of 2018.

Recent Company Highlights

  • Expands Italian portfolio with acquisition of Castello di Casole, in Tuscany - On February 7, 2018, the Company completed the acquisition of the Castello di Casole resort and estate in Tuscany, Italy, for approximately €39 million ($48 million). The property is the latest addition to Belmond’s family of ‘Italian Icons’, which includes Belmond Hotel Cipriani, in Venice, and Belmond Hotel Splendido, in Portofino and is located within easy access of both Florence and Siena, making a visit to the property the perfect addition to a trip to Belmond Villa San Michele. This acquisition marks another step towards achieving the Company’s strategic goal to double in size, and consolidates the Company's position as the leader in luxury travel experiences in Italy’s most exceptional locations. Starting in 2018, the Company expects to invest €7.3 million ($9.0 million) in a phased refurbishment of the hotel, including the addition of two new villas, over four years, bringing the resort’s total key count to 41. Over that same time period the Company intends to sell 14 remaining land plots on the estate to reduce its net investment in the hotel property.
  • Launches three new ‘Grand Suites’ on board the Venice Simplon-Orient-Express - On March 21, 2018, the Company launched three new private ‘Grand Suites’ aboard its legendary Venice Simplon-Orient-Express train. Named after the romantic cities to which the train travels - Paris, Venice and Istanbul - the interior design of each cabin reflects the spirit of the destination while staying true to the original 1920s Art-Deco design. Led by a team of craftsmen, the Grand Suites have undergone a one-of-a-kind restoration project, ensuring that each carriage’s unique features and details are retained and enhanced. This includes the use of traditional Venetian mirrors, crystal barware and Lalique crystal panels.
  • Opens Belmond Cap Juluca for 2018 reservations - In March 2018, the Company reported that its marquee asset in the Caribbean would reopen before the end of 2018 and activated reservation channels across its network, including its website. Belmond Cap Juluca is the first property to be fully reimagined under the brand’s ambitious strategic growth plan. Through timeless and sophisticated art direction, the resort will be restored to its legendary status and support Belmond’s brand position for offering authentic escapes that connect guests with nature and celebrate local culture.

First Quarter 2018 Business Unit Results

Owned hotels:

Europe:

For the first quarter of 2018, revenue from owned hotels for the region was $16.0 million, an increase of $4.0 million or 33% from $12.0 million for the first quarter of 2017. In constant currency, revenue for the region for the first quarter of 2018 increased $2.7 million or 20% from the prior year quarter due to growth across the portfolio. This was led by increases of $0.5 million and $0.4 million at Belmond Reid's Palace, Madeira and Belmond Grand Hotel Europe, St Petersburg, Russia, respectively, which have both benefited from recent capital investments and $0.4 million at Belmond Le Manoir aux Quat'Saisons, Oxfordshire, United Kingdom, following a new rate strategy and successful promotions.

In constant currency, same store RevPAR for owned hotels in the region increased 13% from the prior-year quarter as a result of a 6% increase in ADR and 3 percentage point increase in occupancy.

Adjusted EBITDA for the region for the quarter was a loss of $10.0 million, compared to a loss of $8.1 million for the first quarter of 2017. In constant currency, adjusted EBITDA for the region for the first quarter of 2018 decreased $0.7 million or 8% from the prior year quarter. This was due to a $1.2 million off-season loss at Castello di Casole, offset by a $0.4 million increase in adjusted EBITDA at Belmond Reid's Palace.

North America:

Revenue from owned hotels for the first quarter of 2018 was $29.2 million, down $10.7 million or 27% from $39.9 million for the first quarter of 2017. In constant currency, revenue for the region for the first quarter of 2018 decreased $10.7 million from the prior-year quarter. The decrease is attributable to an $8.4 million fall in revenue at Belmond La Samanna and $3.9 million at '21' Club, which were both closed for the entire quarter following hurricane and water damage, respectively. This decline was offset by improvements against the prior-year period of $1.2 million at Belmond Maroma Resort and Spa, Riviera Maya, Mexico, which has benefited from displaced revenue from the Caribbean and $0.7 million at Belmond El Encanto, Santa Barbara, California, which faced reduced competition as two competitor hotels remained closed after the December 2017 mudslides that occurred in the area.

In constant currency, same store RevPAR for owned hotels in the region increased 11% from the prior-year quarter due to a 10% increase in ADR and one percentage point increase in occupancy.

Adjusted EBITDA for the region for the quarter was $9.7 million, a decrease of $0.2 million or 2% from $9.9 million for the first quarter of 2017. In constant currency, adjusted EBITDA for the region for the first quarter of 2018 decreased $0.2 million or 2% as a result of the closure of Belmond La Samanna, which recorded adjusted EBITDA of $2.3 million in the first quarter of 2017 offset by increases of $1.0 million at Belmond El Encanto, $0.8 million at Belmond Maroma Resort and Spa and $0.6 million at Belmond Charleston Place, Charleston, South Carolina. Operating losses of $2.1 million at Belmond La Samanna, $1.1 million at Belmond Cap Juluca and $0.9 million at '21' Club have been added back to adjusted EBITDA for the first quarter of 2018 while the properties are closed for renovation. The '21' Club restaurant re-opened earlier this month and the wine cellar is expected to re-open in June followed by the rest of the banqueting rooms later in the summer.

Rest of world:

Revenue from owned hotels for the first quarter of 2018 was $37.3 million, an increase of $1.3 million or 4% from $36.0 million for the first quarter of 2017. In constant currency, revenue for the first quarter of 2018 increased $0.9 million or 3% from the prior year quarter, principally as a result of a $1.5 million increase in revenue at Belmond Hotel das Cataratas, Iguassu Falls, Brazil, which saw a 12 percentage point increase in occupancy, largely from domestic business as the economy in Brazil shows signs of a return to growth, offset by a decrease in revenue of $0.5 million at Belmond Governor's Residence, Yangon, Myanmar where visitor numbers continued to be depressed.

In constant currency, same store RevPAR for owned hotels increased 3% from the prior-year quarter as a result of a two percentage point increase in occupancy and 1% increase in ADR.

Adjusted EBITDA for the region for the quarter of $10.3 million increased $0.4 million or 4% from adjusted EBITDA of $9.9 million for the prior-year quarter. In constant currency, adjusted EBITDA for the region remained flat as a result of adjusted EBITDA decreases of $0.6 million at Belmond Copacabana Palace, Rio de Janeiro, Brazil, where a high-spending group last year did not recur this year, and $0.3 million at Belmond Governor's Residence, offset by a $0.9 million increase in adjusted EBITDA at Belmond Hotel das Cataratas.

Owned trains & cruises:

Revenue for the first quarter of 2018 was $4.6 million, down $0.5 million or 10% from $5.1 million for the first quarter of 2017. In constant currency, revenue decreased $0.8 million or 15% primarily as a result of the sale of the Belmond Northern Belle train and termination of the lease for Belmond Orcaella, which together contributed revenues of $1.3 million in the first quarter of 2017. This decline was offset by a $0.4 million increase in revenue for Venice Simplon-Orient-Express driven by enhanced revenue management strategies and the launch of the Grand Suites, along with the addition of wifi and air-conditioning to the train.

Adjusted EBITDA for the quarter was a loss of $4.2 million, unchanged from the first quarter of 2017. In constant currency, adjusted EBITDA for the segment increased by $0.6 million or 12% primarily due to the comparative rise at Venice Simplon-Orient-Express, and the removal of Belmond Northern Belle, which was loss making in the first quarter of 2017.

Management fees:

Adjusted EBITDA from management fees for the first quarter of 2018 was $2.8 million, an increase of $0.4 million or 17% from $2.4 million for the first quarter of 2017 due to occupancy-driven growth at the Company's Peru hotel joint venture and increased revenue from passenger business at the Company's PeruRail joint venture.

Share of pre-tax earnings from unconsolidated companies:

Adjusted share of pre-tax earnings from unconsolidated companies for the first quarter of 2018 was $2.0 million, an increase of $1.4 million compared to $0.6 million for the first quarter of 2017 due to an insurance recovery at the Company's PeruRail joint venture and improved operating performance at both PeruRail and Peru hotel joint ventures.

Central overheads:

For the first quarter of 2018, adjusted central overheads of $8.1 million were $0.4 million or 5% higher than adjusted central overheads of $7.7 million in the prior-year quarter, mainly due to increased development and other corporate headcount to support the Company's strategic growth plan.

Investments

In addition to the acquisition of Castello di Casole in February 2018 for $48 million, during the first quarter of 2018, the Company also invested a total of $30.6 million in its portfolio, including $9.1 million on the refurbishment of Belmond Cap Juluca; $2.6 million at Belmond Grand Hotel Europe for improvements to the hotel's elevators and renovation of its deluxe rooms; $2.5 million on the full refurbishment of Belmond Savute Elephant Lodge, Chobe Reserve, Botswana; $2.4 million on refurbishment and the addition of new suites at Belmond Hotel Splendido, Portofino, Italy; and $1.5 million for the construction of two new barges for Belmond Afloat in France, Burgundy.

Balance Sheet

Following the February 2018 acquisition of Castello di Casole, at March 31, 2018, the Company had total debt of $752.3 million and cash balances of $141.8 million, resulting in net debt of $610.5 million and a ratio of net debt to trailing-twelve-months adjusted EBITDA of 5.0 times, which compared to net debt of $523.1 million and a ratio of net debt to trailing-twelve-months adjusted EBITDA of 4.2 times at December 31, 2017.

Outlook

The Company is providing the following guidance for the second quarter and full year 2018:

  Second Quarter 2018   Full Year 2018

   

Same store worldwide owned hotel RevPAR growth guidance (1)

 
On a constant currency basis

0% - 4%

2% - 6%
In U.S. dollars

8% - 12%

7% - 11%

 
Statement of operations guidance ($ millions)

(Losses)/earnings from continuing operations

($3.6) - $15.4
Adjusted EBITDA (2)

$140.0 - $150.0

 
Depreciation and amortization (3)

$15.2 - $16.2

$62.2 - $65.2
Interest expense (4)

$7.3 - $8.3

$29.9 - $32.9
Tax expense (5)

$9.2 - $10.2

$14.9 - $18.9

 
Cash flow guidance ($ millions)

 
Cash interest expense (4)

$8.1 - $9.1

$31.9 - $34.9
Cash tax expense (6)

$2.8 - $3.8

$18.5 - $21.5
Scheduled loan repayments (4)

$1.4 - $1.8

$5.8 - $6.8
The Company’s guidance as provided above is based on its current expectations, beliefs and assumptions regarding future developments, and are subject to a number of uncertainties and risks outside the Company’s control that could cause the Company’s guidance to change. Accordingly, there can be no assurance that the Company will achieve these results.
 

(1) Projected same store RevPAR growth for the second quarter ending June 30, 2018 and full year ending December 31, 2018 excludes the operations of Castello di Casole, which was acquired in February 2018, Belmond Cap Juluca, which was acquired in May 2017, Belmond La Samanna, which is closed for refurbishment following Hurricanes Jose and Irma in September 2017 and Belmond Savute Elephant Lodge, Chobe Reserve, Botswana which closed for refurbishment in November 2017.
 
(2) The Company's policy commencing this quarter is to provide adjusted EBITDA guidance solely on a full year basis.
 
(3) Projected depreciation and amortization expense for the second quarter ending June 30, 2018 and full year ending December 31, 2018 includes forecast accelerated depreciation related to expected renovations at the Company's properties.
 
(4) Interest expense, cash interest expense and scheduled loan repayments guidance includes the impact of the Company's corporate credit facility refinancing, which closed on July 3, 2017.
 
(5) Tax expense guidance includes the Company's share of provision for income taxes of unconsolidated companies.
 
(6) Cash tax expense guidance does not include the Company's share of provision for income taxes of unconsolidated companies.

BELMOND LTD.

EARNINGS RELEASE SCHEDULES

TABLE OF CONTENTS

 

Statements of Condensed Consolidated Operations

8

Segment Information - Revenue and Adjusted EBITDA

9
Summary of Operating Information for Owned Hotels

10
Condensed Consolidated Balance Sheets

11
Reconciliations - Adjusted EBITDA and Outlook Adjusted EBITDA

12
Reconciliations - Adjusted Net Earnings / (Losses) and Adjusted Share of Pre-Tax Earnings from Unconsolidated Companies

13
Net Debt to Adjusted EBITDA

14

BELMOND LTD.

STATEMENTS OF CONDENSED CONSOLIDATED OPERATIONS

(Unaudited)

         
$ millions – except per share amounts   Three months ended March 31,

2018   2017

 
Revenue

89.7

95.4

 
Expenses:

Cost of services

43.0

46.0

Selling, general and administrative (1)

56.3

51.8

Depreciation and amortization

15.9

13.7

 

 
Total operating costs and expenses

115.2

111.5

 
Gain on disposal of property, plant and equipment

0.2

0.2

 

 
Losses from operations

(25.3 )

(15.9 )

 
Other income

1.1

Interest income

0.3

0.1

Interest expense

(8.1 )

(7.7 )
Foreign currency, net

(0.2 )

 

 
Losses before income taxes and earnings from unconsolidated companies, net of tax

(32.0 )

(23.7 )

 
Benefit from income taxes

15.7

5.3

 

 
Losses before earnings from unconsolidated companies, net of tax

(16.3 )

(18.4 )

 
Earnings from unconsolidated companies, net of tax provision of $0.6 and $0.2

1.4

0.4

 

 
Losses from continuing operations

(14.9 )

(18.0 )

 
Net earnings from discontinued operations, net of tax provision of $Nil and $Nil

 

 
Net losses

(14.9 )

(18.0 )

 
Net earnings attributable to non-controlling interests

(0.1 )

(0.1 )

 

 
Net losses attributable to Belmond Ltd.

(15.0 )

(18.1 )

 
EPS attributable to Belmond Ltd.

(0.15 )

(0.18 )
Weighted average number of shares – millions   102.42     101.86  
(1) Selling, general and administrative expenses include operating costs of businesses plus central overheads, share-based compensation and central marketing costs.

BELMOND LTD.

SEGMENT INFORMATION

(Unaudited)

         
$ millions   Three months ended March 31,

2018   2017

 
Revenue

 
Owned hotels

- Europe

16.0

12.0

- North America

29.2

39.9

- Rest of world

37.3  

36.0  
Total owned hotels

82.5

87.9

Owned trains & cruises

4.6

5.1

Management fees

2.6

2.4

 

 
Revenue

89.7

95.4

 
Adjusted EBITDA

 
Owned hotels

- Europe

(10.0 )

(8.1 )
- North America

9.7

9.9

- Rest of world

10.3  

9.9  
Total owned hotels

10.0

11.7

Owned trains & cruises

(4.2 )

(4.2 )
Management fees

2.8

2.4

Share of pre-tax earnings from unconsolidated companies

2.0  

0.6  

10.6

10.5

 
Central overheads

(8.1 )

(7.7 )
Share-based compensation

(1.3 )

(1.5 )
Central marketing costs

(3.4 )

(1.8 )

 

 
Adjusted EBITDA   (2.2 )   (0.5 )

BELMOND LTD.

SUMMARY OF OPERATING INFORMATION FOR OWNED HOTELS

     

  Three months ended March 31,

2018   2017

 
Room Nights Available

Europe

44,516

43,040
North America

56,340

64,170
Rest of world

91,260

92,880
Worldwide

192,116

200,090

 
Room Nights Sold

Europe

20,398

18,477
North America

39,360

43,983
Rest of world

57,673

56,654
Worldwide

117,431

119,114

 
Occupancy

Europe

46%

43%
North America

70%

69%
Rest of world

63%

61%
Worldwide

61%

60%

 
ADR (in U.S. dollars)

Europe

376

319
North America

428

466
Rest of world

419

410
Worldwide

415

417

 
RevPAR (in U.S. dollars)

Europe

172

137
North America

299

320
Rest of world

265

250
Worldwide

253

248

 
Same Store RevPAR (in U.S. dollars) (1)

Europe

172

137

North America

299

269
Rest of world

265

252
Worldwide

253

231

Same Store RevPAR (% change)

U.S. dollar

Constant

currency

Europe

26%

13%
North America

11%

11%
Rest of world

5%

3%
Worldwide   10%   7%
(1) Same store RevPAR data for the three months ended March 31, 2018 and 2017 excludes the operations of Belmond Cap Juluca, which was acquired in May 2017, Belmond La Samanna which is closed for refurbishment following Hurricanes Jose and Irma in September 2017, Belmond Savute Elephant Lodge, which closed for refurbishment from November 2017, and Castello di Casole that was acquired in February 2018.

BELMOND LTD.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

         
$ millions   March 31,   December 31,

2018

2017

 

Assets

Cash

134.6

180.2
Restricted cash

6.5

3.1
Accounts receivable

51.1

34.4
Due from unconsolidated companies

14.6

12.8
Prepaid expenses and other

13.4

13.3
Inventories

22.4

23.1

 

 
Total current assets

242.6

266.9

 
Property, plant & equipment, net of accumulated depreciation

1,238.9

1,168.0
Investments in unconsolidated companies

62.0

64.6
Goodwill

122.0

120.2
Other intangible assets

22.4

19.8
Other assets

16.9

14.1

 

 
Total assets (1)

1,704.8

1,653.6

 
Liabilities and Equity

Accounts payable

15.8

15.8
Accrued liabilities

80.3

79.5
Deferred revenue

56.1

32.8
Current portion of long-term debt and capital leases

6.5

6.4

 

 
Total current liabilities

158.7

134.5

 
Long-term debt and obligations under capital leases

745.8

700.8
Liability for pension benefit

0.5

0.6
Deferred income taxes

98.1

115.4
Other liabilities

2.9

3.0
Liability for uncertain tax positions

0.6

0.5

 

 
Total liabilities (2)

1,006.6

954.8

 
Shareholders’ equity

697.9

698.5
Non-controlling interests

0.3

0.3
Total equity

698.2

698.8

 

 
Total liabilities and equity   1,704.8   1,653.6
(1) Balance at March 31, 2018 includes $204.9 million (December 31, 2017 - $206.3 million) of assets of consolidated variable interest entities ("VIEs") that can only be used to settle obligations of the VIEs.
(2) Balance at March 31, 2018 includes $120.7 million (December 31, 2017 - $123.0 million) of liabilities of consolidated VIEs whose creditors have no recourse to Belmond Ltd.

BELMOND LTD.

RECONCILIATIONS - ADJUSTED EBITDA AND OUTLOOK ADJUSTED EBITDA

(Unaudited)

     
$ millions

Three months ended

March 31,

2018   2017

 
Adjusted EBITDA reconciliation:

 
Losses from continuing operations

(14.9 )

(18.0 )
Depreciation and amortization 15.9

13.7

Interest income

(0.3 )

(0.1 )
Interest expense

8.1

7.8

Foreign currency, net

0.2

Benefit from income taxes (15.7 )

(5.3 )
Share of provision for income taxes of unconsolidated companies 0.6  

0.2  

(6.3 )

(1.5 )

 
Restructuring and other special items (1) 4.3

1.2

Gain on disposal of property, plant and equipment (0.2 )

(0.2 )

 

 
Adjusted EBITDA   (2.2 )   (0.5 )
(1) Represents adjustments for insurance deductibles and losses while Belmond Cap Juluca and Belmond La Samanna are closed following the impact of Hurricanes Irma and Jose, restructuring, severance and redundancy costs, pre-opening costs and other items, net.
     
$ millions

Twelve months ended

December 31, 2018

Low case   High case

 
Reconciliation of outlook adjusted EBITDA:

 
(Losses)/earnings from continuing operations

(3.6 )

15.4

Depreciation and amortization

65.2

62.2

Net interest expense

32.9

29.9

Foreign currency, net

Provision for income taxes

10.6

12.6

Share of provision for income taxes of unconsolidated companies

4.3  

6.3  

109.4

126.4

Restructuring and other special items

4.2

1.2

Net operating losses at two Caribbean properties

27.0

23.0

Gain on disposal of property, plant and equipment

(0.6 )

(0.6 )

 

 
Adjusted EBITDA   140.0     150.0  

BELMOND LTD.

RECONCILIATIONS - ADJUSTED NET EARNINGS / (LOSSES) AND ADJUSTED SHARE OF PRE-TAX EARNINGS FROM UNCONSOLIDATED COMPANIES

(Unaudited)

     
$ millions – except per share amounts

Three months ended

March 31,

2018   2017

 
Adjusted net earnings reconciliation:

 
Losses from continuing operations

(14.9 )

(18.0 )
Restructuring and other special items (1)

4.3

1.2

Gain on disposal of property, plant and equipment

(0.2 )

(0.2 )
Accelerated depreciation

1.3

Foreign currency, net (2)

0.2

Tax-related adjustments

(8.1 )

Income tax effect of adjusting items (3)

(0.7 )

 

 
Adjusted net (losses)/earnings from continuing operations

(18.3 )

(16.8 )

 
EPS from continuing operations

(0.15 )

(0.18 )
Adjusted EPS from continuing operations

(0.18 )

(0.16 )
Weighted average number of shares (millions)   102.42     101.86  
(1) Represents adjustments for insurance deductibles and losses while Belmond Cap Juluca and Belmond La Samanna are closed following the impact of Hurricanes Irma and Jose, restructuring, severance and redundancy costs, pre-opening costs and other items, net.
(2) Non-cash item arising from the translation of certain assets and liabilities denominated in currencies other than the functional currency of the respective entity.
(3) Represents income tax effect of adjusting items by applying the applicable statutory tax rate to the adjusting items.
         
$ millions  

Three months ended

March 31,

2018   2017

 
Adjusted share of pre-tax earnings from unconsolidated companies reconciliation:

 
Earnings from unconsolidated companies (1)

1.4

0.4
Share of provision for income taxes of unconsolidated companies

0.6

0.2

 
Adjusted share of pre-tax earnings from unconsolidated companies   2.0   0.6
(1) Represents the Company's share of earnings from unconsolidated companies.

BELMOND LTD.

NET DEBT TO ADJUSTED EBITDA

(Unaudited)

           
$ millions - except ratios   Twelve months ended and as at

March 31,

2018

 

December 31,

2017

 
Cash

Cash and cash equivalents

134.6

180.2
Restricted cash (including $0.7 million and $0.8 million classified within long-term other assets on the balance sheet for 2018 and 2017, respectively)

7.2

3.9

   

 
Total cash

141.8

184.1

 
Total debt

Current portion of long-term debt and capital leases

6.5

6.4
Long-term debt and obligations under capital leases (1)

745.8

700.8

   

 
Total debt

752.3

707.2

 
Net debt

610.5  

523.1

 
Adjusted EBITDA

(2.2 )

128.2

 
Net debt / adjusted EBITDA   5.0     4.2
(1) Long-term debt is after the deduction of unamortized debt issuance costs and discount on secured term loans.
$ millions

 

For the twelve months ended

March 31, 2018

 
Trailing twelve months adjusted EBITDA calculation:

 
Adjusted EBITDA for the twelve months ended December 31, 2017 (1)

124.0

Less: Adjusted EBITDA for the three months ended March 31, 2017

0.5

Plus: Adjusted EBITDA for the three months ended March 31, 2018

(2.2 )

 
Adjusted EBITDA for the trailing twelve months   122.3  
(1) As disclosed in the Company's 2017 earnings news release issued on February 26, 2018.

About Belmond Ltd.

Belmond (belmond.com) is a global collection of exceptional hotel and luxury travel adventures in some of the world’s most inspiring and enriching destinations. Established over 40 years ago with the acquisition of Belmond Hotel Cipriani in Venice, its unique and distinctive portfolio now embraces 46 hotel, rail and river cruise experiences, excluding one scheduled for a 2018 opening in London, in many of the world’s most celebrated destinations. From city landmarks to intimate resorts, the collection includes Belmond Grand Hotel Europe, St. Petersburg; Belmond Copacabana Palace, Rio de Janeiro; Belmond Maroma Resort & Spa, Riviera Maya; and Belmond El Encanto, Santa Barbara. Belmond also encompasses safaris, seven luxury tourist trains, including the Venice Simplon-Orient-Express, and two river cruises. Belmond also operates ‘21’ Club, one of New York’s most storied restaurants.



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