Executive Summary
Portsmouth Square Inc (PRSI) reported QQ3 2024 results reflecting a revenue uptick vs. the prior quarter but delivering a material net loss amid outsized financing costs and one-time non-operating items. Revenue reached $10.758 million, up 3.14% year-over-year and 5.21% quarter-over-quarter, while EBITDA stood at $1.167 million and operating income at $0.306 million, signaling a modestly positive operational footprint on an EBITDA basis. However, the company posted a net loss of $2.871 million and an EPS of -$3.91 driven largely by a heavy interest expense of $3.221 million and other income/expenses net of -$3.229 million, resulting in a net margin of -26.7% for the quarter. The balance sheet shows acute leverage with long-term debt of $128.674 million and negative equity of $110.632 million, producing a debt-to-capitalization metric of 7.13 and an interest-coverage ratio of 0.095x, highlighting meaningful financial distress even as cash from operations modestly covers near-term commitments.
Key Performance Indicators
QoQ: 1 052.31% | YoY:-53.25%
QoQ: 168.76% | YoY:-63.04%
QoQ: -11.89% | YoY:-171.62%
QoQ: -11.71% | YoY:-171.53%
Key Insights
Revenue: $10.758 million; YoY +3.14%, QoQ +5.21%. Gross Profit: $0.619 million; Gross Margin 5.75%; YoY -53.25%, QoQ +1052.31%. EBITDA: $1.167 million; EBITDA Margin 10.84% (EBITDA ratio 0.1084). Operating Income: $0.306 million; Operating Margin 2.84%; YoY -63.04%, QoQ +168.76%. Net Income: -$2.871 million; Net Margin -26.69%; YoY -171.62%, QoQ -11.89%. EPS: -$3.91; YoY -171.53%, QoQ -11.71%. Cash Flow: Operating cash flow ~$0.030 million; Capex -$0.731 million; Free cash flow -$0.701 million. ...
Financial Highlights
Revenue: $10.758 million; YoY +3.14%, QoQ +5.21%. Gross Profit: $0.619 million; Gross Margin 5.75%; YoY -53.25%, QoQ +1052.31%. EBITDA: $1.167 million; EBITDA Margin 10.84% (EBITDA ratio 0.1084). Operating Income: $0.306 million; Operating Margin 2.84%; YoY -63.04%, QoQ +168.76%. Net Income: -$2.871 million; Net Margin -26.69%; YoY -171.62%, QoQ -11.89%. EPS: -$3.91; YoY -171.53%, QoQ -11.71%. Cash Flow: Operating cash flow ~$0.030 million; Capex -$0.731 million; Free cash flow -$0.701 million. Balance Sheet: Total assets $41.655 million; Total liabilities $152.287 million; Total stockholders’ equity -$110.632 million. Cash and equivalents $3.572 million; Long-term debt $128.674 million; Net debt $125.102 million. Liquidity: Current ratio 0.253; Quick ratio 0.253; Cash ratio 0.221. Leverage: Debt-to-capitalization 7.13; Interest coverage 0.095x.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
10.76M |
3.14% |
5.21% |
| Gross Profit |
619.00K |
-53.25% |
1 052.31% |
| Operating Income |
306.00K |
-63.04% |
168.76% |
| Net Income |
-2.87M |
-171.62% |
-11.89% |
| EPS |
-3.91 |
-171.53% |
-11.71% |
Key Financial Ratios
operatingProfitMargin
2.84%
operatingCashFlowPerShare
$0.04
freeCashFlowPerShare
$-0.96
Management Commentary
transcriptHighlights: No earnings transcript data were provided in the available materials. As a result, there are no management quotes or theme-based highlights to accompany the QQ3 2024 results.
No transcript data available.
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No transcript data available.
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Forward Guidance
Forward guidance is not explicitly disclosed in the provided dataset. Given the severity of near-term leverage and negative equity, any meaningful improvement will hinge on (a) stabilization or growth in San Francisco hotel demand and room rates, (b) successful debt refinancing or covenant relief to materialize a sustainable interest burden, and (c) potential asset-level optimizations or capital restructuring. Key factors for investors to monitor include occupancy and average daily rate (ADR) trends for the PRSI property, management’s refinancing plan for the $128.7 million of long-term debt, potential asset divestitures or equity infusion, and any changes in branding, franchise fees, or operating expenses that could materially alter EBITDA and cash flow. Absent clearer guidance, the baseline assumes moderate revenue growth tempered by high financing costs and ongoing leverage constraints.