Braemar Hotels & Resorts Inc. (BHR): auditor change — Braemar Hotels restates Q3 2022 results; missed $4.8M preferred stock adjustment, EPS cut from $0.11 to $0.04

Braemar Hotels & Resorts Inc.

Audit committee concluded Q3 2022 financials misstated; non-cash redemption value adjustment for Series E and M preferred stock omitted.
For nine months ended Sept 30, 2022: net income to common stockholders revised from $7.6M to $2.8M; EPS from $0.11 to $0.04.
For three months ended Sept 30, 2022: net loss increased from $14.1M to $16.7M; loss per share from $(0.20) to $(0.24).
Company expects to report a material weakness in internal control over financial reporting in its Form 10-Q/A.
Deemed dividend adjustment was $2.6M for Q3 and $4.8M YTD; AFFO and Adjusted EBITDAre unaffected.

item 4.02

Key facts

Extracted from this filing and checked against the source text.

Auditor Changes SEC 8-K Item 4.01/4.02 confidence 0.9

Braemar Hotels & Resorts Inc. reported that prior financial statements should not be relied upon.

Action: non reliance

Exact text from the filing

lidated statements of equity for the three and nine months ended September 30, 2022, in the line item entitled “redemption value adjustment - preferred stock.” The effect of correcting this misstatement will result in a restatement of the Company’s condensed consolidated statement of operations for the nine months ended September 30, 2022 as shown in the table below (amounts in thousands except per share amounts): As Originally Reported Adjustment As Restated Condensed Consolidated Statement of Operations Deemed dividend on redeemable preferred stock $ — $ (4,802) $ (4,802) Net income (loss) attributable to common stockholders $ 7,594 $ (4,802) $ 2,792 Income (loss) per share - basic: Net income (loss) allocated to common stockholders per share $ 0.11 $ (0.07) $ 0.04 Income (loss) per share - diluted: Net income (loss) allocated to common stockholders per share $ 0.11 $ (0.07) $ 0.04 The

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Source: SEC EDGAR

accession 0001574085-23-000009

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