Thu, May 15, 6:32 PM (37 days ago)
**Portsmouth Square, Inc. (PORTS) Q1 2025 Financial Summary** **Financial Health & Performance:** - **Revenue:** Q1 2025 hotel revenue increased by 13% YoY to $12.21M, driven by a 13% increase in room revenue and a 11% increase in occupancy. However, food and beverage revenue decreased by 19.6%. - **Profit Margins:** Q1 2025 operating income before interest, depreciation, and amortization increased by 66.7% YoY to $2.53M. However, net loss decreased by 75.2% YoY to $0.71M due to increased interest expenses and a gain on debt extinguishment. - **Cash Flow:** Q1 2025 net cash used in operating activities was $5.24M, compared to $0.55M in Q1 2024. The company invested $0.91M in property improvements. - **Earnings Changes:** Q1 2025 basic and diluted net loss per share decreased by 75.3% YoY to $0.97. **Trends & Uncertainties:** - The company faces challenges in the San Francisco hospitality market, including elevated interest rates, reduced business travel demand, and increased labor costs. - The company successfully refinanced its senior mortgage loan and modified its mezzanine loan in March 2025, improving its near-term liquidity position. - The company continues to operate under a lender-controlled lockbox cash management system and has substantial doubt about its ability to continue as a going concern within one year. **Future Operations & Impact:** - The company plans to continue cost controls, selective capital expenditure deferrals, and strategic use of related party financing to preserve liquidity. - The company is evaluating strategic alternatives and operational adjustments in response to ongoing macroeconomic and market-specific challenges. - The company expects to complete the lobby renovation and restoration of 14 guest rooms by June 30, 2025, enhancing asset competitiveness and supporting revenue growth.