What costs were excluded from the revised definition of Adjusted EBITDA for Caption By Hyatt?
Caption_By_Hyatt Franchise · 2025 FDDAnswer from 2025 FDD Document
included earnings from a paid membership program offering benefits exclusively at certain all-inclusive resorts primarily in Latin America and the Caribbean. Adjusted EBITDA includes intercompany commission fee expenses paid to our management and franchising segment, which are eliminated in consolidation.
Within overhead, we include unallocated corporate expenses.
During the year ended December 31, 2024, we revised our definition of Adjusted EBITDA to exclude transaction and integration costs (see Note 1), and we recast prior-period results to provide comparability. The revised definition excludes integration costs, which were previously recognized in integration costs during the three months ended March 31, 2024 and general and administrative expenses during the years ended December 31, 2023 and December 31, 2022, and transaction costs, which were previously recognized in general and administrative expenses during the three months ended March 31, 2024 and the years ended December 31, 2023 and December 31, 2022. Previously, only transaction costs recognized in gains (losses) on sales of real estate and other and other income (loss), net were excluded from Adjusted EBITDA.
Source: Item 21 — Financial Statements (FDD pages 84–85)
What This Means (2025 FDD)
According to Caption By Hyatt's 2025 Franchise Disclosure Document, the company revised its definition of Adjusted EBITDA during the year ended December 31, 2024. The revised definition now excludes transaction and integration costs. This change was made to enhance the comparability of results and to provide a more representative measure of Caption By Hyatt's core operations, aligning with how management evaluates operating performance.
Previously, integration costs were recognized in integration costs during the three months ended March 31, 2024, and in general and administrative expenses during the years ended December 31, 2023, and December 31, 2022. Transaction costs were previously recognized in general and administrative expenses during the three months ended March 31, 2024, and the years ended December 31, 2023, and December 31, 2022. Before the revision, only transaction costs recognized in gains (losses) on sales of real estate and other and other income (loss), net were excluded from Adjusted EBITDA.
The exclusion of these costs from the Adjusted EBITDA calculation provides a clearer view of Caption By Hyatt's underlying operational performance. By removing costs that may vary significantly in frequency or amount, the revised definition aims to give a more consistent and reliable measure for assessing the company's financial health and operational efficiency. This adjustment helps in evaluating trends and comparing Caption By Hyatt's performance against its industry peers.