Hyatt sees FY18 adjusted EBITDA $805M-$825M
The company provided the following information for the 2018 fiscal year: Net income is expected to be approximately $176M to $215M. Adjusted EBITDA is expected to be approximately $805M to $825M. These estimates also include a favorable impact from foreign currency of approximately $0 to $5M. Comparable systemwide RevPAR is expected to increase approximately 1% to 3%, as compared to fiscal year 2017. Adjusted selling, general, and administrative expenses are expected to be approximately $300M. This excludes approximately $35M to $36M of stock-based compensation expense and any potential expenses related to benefit programs funded through rabbi trusts. Capital expenditures are expected to be approximately $350M. Depreciation and amortization expense is expected to be approximately $367M to $371M. Interest expense is expected to be approximately $75M to $76M. Other income, net is expected to be negatively impacted by approximately $65M to $75M related to performance guarantee expense for the four managed hotels in France. The effective tax rate is expected to be approximately 27% to 31%, reflecting estimated impacts from recent U.S. tax reform. The company expects to grow units, on a net rooms basis, by approximately 6.0% to 6.5%, reflecting approximately 60 new hotel openings. The company expects to return at least $300M to shareholders through a combination of cash dividends on its common stock and share repurchases. The above does not reflect anticipated changes resulting from the adoption of the new revenue recognition standard in 2018. The company is in the process of finalizing the adoption impact and restatement of prior year results. As previously disclosed, the most material non-cash impact to Adjusted EBITDA relates to the change in accounting for deferred gains which would result in a reduction of $25M in 2017 and an anticipated reduction of approximately $31M in 2018.