ASHFORD DECLARES PAYMENT OF HALF OF THE COMPANY'S ACCRUED PREFERRED DIVIDENDS

Rhea-AI Summary

Ashford announced a cash dividend of $0.932 per share for its Series D Convertible Preferred Stock, representing approximately 50% of accrued dividends for the quarters ending June 30, 2020, and December 31, 2020. The dividends will be paid on April 15, 2022. Chairman and CEO Monty J. Bennett expressed optimism about the company's future, hoping to pay the remaining accrued dividends in 2023, contingent on the lodging industry's recovery.

Positive

• Declaration of cash dividends of $0.932 per share.
• Payment represents approximately 50% of accrued preferred dividends.
• Company expresses confidence in the recovery of the lodging industry.

Negative

• Only half of the accrued preferred dividends are being paid, indicating previous cash flow constraints.

DALLAS, April 12, 2022 /PRNewswire/ -- Ashford Inc. (NYSE American: AINC) ("Ashford" or the "Company") today announced that its Board of Directors declared cash dividends for the Company's Series D Convertible Preferred Stock ("Preferred Stock") reflecting accrued and unpaid dividends for the quarters ending June 30, 2020 and December 31, 2020.  The Company will pay an aggregate cash dividend of $0.932 per share of Preferred Stock, representing approximately 50% of the accrued dividends.  The Preferred Stock dividends will be paid on April 15, 2022.

"Our business and advised platforms continue to benefit from the recovery in the lodging industry, and we're pleased to be in a position to pay half of our accrued preferred dividends," commented Monty J. Bennett, Ashford's Chairman and Chief Executive Officer. "We remain excited about the future prospects for the Company and, contingent on the pace of the continued recovery, hope to be in a position to pay the remaining accrued preferred dividends sometime during 2023." 

Ashford is an alternative asset management company with a portfolio of strategic operating businesses that provides global asset management, investment management and related services to the real estate and hospitality sectors.

Forward-Looking Statements

Certain statements and assumptions in this press release contain or are based upon "forward-looking" information and are being made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements in this press release include, among others, statements about the Company's strategy and future plans. These forward-looking statements are subject to risks and uncertainties. When we use the words "will likely result," "may," "anticipate," "estimate," "should," "expect," "believe," "intend," or similar expressions, we intend to identify forward-looking statements. Such statements are subject to numerous assumptions and uncertainties, many of which are outside Ashford Inc.'s control.

These forward-looking statements are subject to known and unknown risks and uncertainties, which could cause actual results to differ materially from those anticipated, including, without limitation: the impact of COVID-19, including one or more possible recurrences of COVID-19 case surges that would cause state and local governments to reinstate travel restrictions and the rate of adoption and efficacy of vaccines to prevent COVID-19, on our business and investment strategy; our ability to maintain compliance with NYSE American LLC continued listing standards; our ability to regain Form S-3 eligibility; our ability to repay, refinance or restructure our debt and the debt of certain of our subsidiaries; anticipated or expected purchases or sales of assets; our projected operating results; completion of any pending transactions; our understanding of our competition; market trends; projected capital expenditures; the impact of technology on our operations and business; general volatility of the capital markets and the market price of our common stock and preferred stock; availability, terms and deployment of capital; availability of qualified personnel; changes in our industry and the markets in which we operate, interest rates or the general economy; and the degree and nature of our competition. These and other risk factors are more fully discussed in the Company's filings with the Securities and Exchange Commission.

The forward-looking statements included in this press release are only made as of the date of this press release. Such forward-looking statements are based on our beliefs, assumptions, and expectations of our future performance taking into account all information currently known to us. These beliefs, assumptions, and expectations can change as a result of many potential events or factors, not all of which are known to us. If a change occurs, our business, financial condition, liquidity, results of operations, plans, and other objectives may vary materially from those expressed in our forward-looking statements. You should carefully consider this risk when you make an investment decision concerning our securities. Investors should not place undue reliance on these forward-looking statements. The Company can give no assurance that these forward-looking statements will be attained or that any deviation will not occur. We are not obligated to publicly update or revise any forward-looking statements, whether as a result of new information, future events or circumstances, changes in expectations, or otherwise, except to the extent required by law.

View original content:https://www.prnewswire.com/news-releases/ashford-declares-payment-of-half-of-the-companys-accrued-preferred-dividends-301524297.html

SOURCE Ashford Inc.

FAQ

What is the dividend amount declared by Ashford on April 12, 2022?

Ashford declared a cash dividend of $0.932 per share for its Series D Convertible Preferred Stock.

When will Ashford pay the declared dividends?

The dividends will be paid on April 15, 2022.

Why is Ashford only paying half of the accrued preferred dividends?

Ashford is paying half due to previous cash flow constraints but is optimistic about future payments.

What is the significance of the declared dividends for shareholders?

The declared dividends signify a partial recovery in cash flow and a commitment to return value to shareholders.

Is Ashford likely to pay the remaining preferred dividends in the future?

The company hopes to pay the remaining accrued preferred dividends sometime during 2023, depending on the ongoing recovery.