Stratus Properties (STRS) Reports Q2 EPS of $0.50

Stratus Properties (NASDAQ: STRS) reported Q2 EPS of $0.50, versus ($0.29) reported last year.

Highlights:

• Net income attributable to common stockholders totaled $4.1 million, $0.50 per share, in second-quarter 2020, compared to a net loss attributable to common stockholders of $2.4 million, $0.29 per share, in second-quarter 2019. Second-quarter 2020 includes $15.0 million ($10.9 million to net income attributable to common stockholders or $1.32 per share) in income from Block 21 earnest money forfeited by Ryman Hospitality Properties, Inc. (Ryman) upon its May 2020 termination of agreements to purchase Block 21.
• Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) totaled $12.3 million in second-quarter 2020, compared to $3.0 million in second-quarter 2019. Second-quarter 2020 EBITDA includes the Block 21 earnest money discussed above. For a reconciliation of net income (loss) attributable to common stockholders to EBITDA, see the supplemental schedule, "EBITDA," on page VI.
• Consolidated revenue totaled $8.9 million in second-quarter 2020, compared to $23.7 million in second-quarter 2019 as the COVID-19 pandemic significantly impacted hotel and entertainment operations in second-quarter 2020.
• Sold two Amarra Drive Phase II lots and one Amarra Drive Phase III lot for a total of $1.8 million during second-quarter 2020. As of August 4, 2020, Stratus had contracts to sell Amarra Drive lots totaling $4.7 million, not yet recognized in revenue.
• The COVID-19 pandemic has continued to have a significant adverse impact on Stratus' business and operations. Stratus is continuing to defer progress on certain development projects pending improvements in health and market conditions, but Stratus continues to focus on protecting existing cash flows from its Leasing Operations properties, advancing its land planning, engineering and permitting activities for its development projects, ramping up operations at Block 21 as health and market conditions permit and assessing new opportunities for future projects.

William H. Armstrong III, Chairman, President and Chief Executive Officer, stated, “The pandemic continues to impact our communities across the United States, including the Texas markets. We continue to focus on the health and safety of our people. We had hoped that the pandemic trends would show signs of improvement by now, but as the city of Austin and much of Texas move forward through this difficult period, we at Stratus must carefully manage our resources to effectively keep Stratus in a position to operate during these current market conditions and a potential prolonged recovery. Importantly, at this time we believe that we have ample liquidity to manage these challenging times."

Mr. Armstrong continued, “Our hotel and entertainment segments remain severely impacted as government restrictions are extended or re-imposed and cases of COVID-19 increase. Nevertheless, throughout the pandemic, demand for our single-family lots and multi-family units has remained fairly strong. We are continuing our longer-term value creation efforts, such as planning for Sections KLO and N in Barton Creek, despite the negative impact the pandemic is having on our W Hotel and ACL Live venue. We remain optimistic about the Texas markets where we operate, our diverse and unique portfolio and our team’s resilience and ability to perform.”

For earnings history and earnings-related data on Stratus Properties (STRS) click here.

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