The InterGroup (INTG) Q3 2024 Earnings Report

Revenue performance and profitability
- Revenue: $14,883,000, YoY +3.63%, QoQ +3.92%
- Gross Profit: $3,032,000; Gross Margin: 20.37%; YoY margin change: -4.62%; QoQ: +43.70%
- EBITDA: $1,115,000; EBITDA Margin: 7.49%
- Operating Income: $709,000; Operating Margin: 4.76%; YoY: -26.38%; QoQ: +152.67%
- Net Income: -$3,164,000; Net Margin: -21.26%; YoY: -788.76%; QoQ: -106.93%
- EPS: -$1.44; Diluted EPS: -$1.44; YoY: -800%; QoQ: -108.70%

Liquidity, cash flow and balance sheet health
- Net cash provided by operating activities: -$1,997,000; Free Cash Flow: -$2,728,000
- Cash and cash equivalents: $11,988,000; Short-term investments: $14,684,000; Total cash/cash equivalents and short-term investments: $26,672,000
- Total assets: $118,955,000; Total liabilities: $220,381,000; Total stockholders’ equity: -$76,360,000
- Long-term debt: $196,548,000; Total debt: $196,990,000; Net debt: $185,002,000
- Current ratio: 1.424; Quick ratio: 1.424; Interest coverage: 0.194

Capital structure and leverage
- Debt-to-capitalization: 1.633x; Debt-to-equity: -2.58x; Long-term debt to capitalization: 1.635x
- Equity multiplier: -1.558 (negative equity)
- Cash Flow Coverage: -0.0101; Free cash flow to operating cash flow ratio: 1.366 (positive cash flow of operations relative to FCF is weak given negative net income and high non-cash charges)

Valuation and relative positioning
- Price-to-sales: 3.07x; Price-to-book and price-to-earnings are negative due to negative book value and net income
- Enterprise value multiple: 206.97x; Price/Operating cash flow and price/FCF are highly negative or extreme due to losses and leverage
- Compared with peers (HTHT, IHG, HLT, etc.), INTG’s gross margin (roughly 20.4%) and net margin (-21.3%) lag peers with mid- to high-20s to 40s operating margins and positive earnings in many cases. Leverage is significantly higher for INTG with negative equity, versus peers that maintain healthier equity bases and debt structures.

Note: The earnings transcript content is not provided in the dataset. As a result, specific management quotes or thematic highlights from an QQ3 2024 call cannot be extracted. The analysis below relies on reported financials and the context they imply. Investors should seek the full earnings call transcript for direct management commentary on strategic priorities, cost-control initiatives, and any forward-looking guidance.

The QQ3 2024 results underscore a high-risk, high-leverage profile with constrained near-term liquidity and a fragile bottom line. The revenue growth is modest, but profits are eroded by heavy non-operating costs and interest expense, resulting in a substantial net loss. The core asset—a Hilton-branded hotel in San Francisco—offers a lever for value creation if the asset can be better utilized and if refinancing or asset monetization reduces the structural burden. Absent a credible deleveraging plan or a material improvement in hotel operations, the investment case remains challenged. For risk-tolerant investors with a long-term view, scenarios that include debt restructuring, asset sales, or significant occupancy/ADR expansion could unlock value; otherwise, the stock trades with weak profitability metrics and stretched balance sheet metrics relative to peers in Travel Lodging.