Delaware | 000-19989 | 72-1211572 | ||
(State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification Number) |
212 Lavaca St., Suite 300 | |
Austin, Texas | 78701 |
(Address of principal executive offices) | (Zip Code) |
Press release dated August 14, 2014, titled “Stratus Properties Inc. Reports Second-Quarter and Six-Month 2014 Results.” |
NEWS RELEASE | |
NASDAQ Symbol: “STRS” | |
Stratus Properties Inc. | Financial and Media Contact: |
212 Lavaca St., Suite 300 | William H. Armstrong III |
Austin, Texas 78701 | (512) 478-5788 |
• | Net income attributable to common stock for second-quarter 2014 totaled $0.2 million, $0.03 per share, compared with $0.6 million, $0.08 per share, for second-quarter 2013. Net income attributable to common stock for the first six months of 2014 totaled $1.3 million, $0.16 per share, compared with $1.8 million, $0.22 per share, for the first six months of 2013. |
• | As of June 30, 2014, sales of 153 of the 159 condominium units at the W Austin Residences had closed for $178.7 million (an average of $1.2 million per unit), including one unit for $2.7 million in second-quarter 2014, compared with 16 units for $23.8 million (an average of $1.4 million per unit) in second-quarter 2013. In July 2014, Stratus sold one additional condominium unit for $1.0 million and as of July 31, 2014, had five condominium units available for sale. |
• | Lot sales totaled 10 lots for $4.1 million in second-quarter 2014 and 18 lots for $7.7 million for the first six months of 2014, compared with 13 lots for $4.1 million in second-quarter 2013 and 22 lots for $6.7 million for the first six months of 2013. In July 2014, Stratus sold one lot for $0.4 million and as of July 31, 2014, had 12 lots under contract. |
• | Revenue per available room at the W Austin Hotel was $284 during second-quarter 2014 and $296 for the first six months of 2014, compared with $250 during second-quarter 2013 and $264 for the first six months of 2013. |
• | Austin City Limits Live at the Moody Theater (ACL Live) hosted 51 events during second-quarter 2014, compared with 49 events during second-quarter 2013. ACL Live hosted 96 events during the first six months of 2014 and 2013. |
• | Construction of the final two buildings at Parkside Village is expected to be completed in October 2014 and as of June 30, 2014, occupancy of the completed 77,641 square feet was 95 percent. The remaining buildings under development, the 8,043-square-foot building and the 4,500-square-foot building, are fully pre-leased. |
• | Expenditures for purchases and development of real estate properties totaled $24.8 million for the first six months of 2014, compared with $8.7 million for the first six months of 2013, as Stratus continues execution of its development plans, primarily for our Lakeway and Barton Creek properties. |
• | Stratus' consolidated debt was $168.9 million and consolidated cash was $24.3 million at June 30, 2014, compared with consolidated debt of $151.3 million and consolidated cash of $21.3 million at December 31, 2013. |
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
(In Thousands, Except Per Share Amounts) | ||||||||||||||||
Revenues | $ | 22,521 | $ | 42,525 | $ | 45,820 | $ | 75,984 | ||||||||
Operating income | 2,842 | 4,953 | a | 6,190 | a | 8,074 | a | |||||||||
Net income | 1,264 | 2,967 | a | 4,156 | a | 4,798 | a | |||||||||
Net income attributable to Stratus common stock | 219 | 632 | a | 1,316 | a | 1,785 | a | |||||||||
Diluted net income per share attributable to Stratus common stock | $ | 0.03 | $ | 0.08 | a | $ | 0.16 | a | $ | 0.22 | a | |||||
Diluted weighted average shares of common stock outstanding | 8,068 | 8,131 | 8,085 | 8,133 |
a. | Includes income of $1.8 million, $0.22 per share, for the second quarter and the first six months of 2013 and $0.6 million, $0.07 per share, for the first six months of 2014, related to an insurance settlement. |
Three Months Ended June 30, | |||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
Units/Lots | Revenues | Average Cost per Unit/Lot | Units/Lots | Revenues | Average Cost Per Unit/Lot | ||||||||||||||||
W Austin Residences | |||||||||||||||||||||
Condominium Units | 1 | $ | 2,700 | $ | 2,295 | 16 | $ | 23,777 | $ | 1,236 | |||||||||||
Barton Creek | |||||||||||||||||||||
Calera: | |||||||||||||||||||||
Verano Drive | 6 | 2,370 | 179 | 8 | 2,486 | 180 | |||||||||||||||
Calera Drive | — | — | — | 3 | 680 | 142 | |||||||||||||||
Amarra Drive: | |||||||||||||||||||||
Phase I Lots | — | — | — | 1 | 300 | 259 | |||||||||||||||
Phase II Lots | 4 | 1,707 | 163 | 1 | 600 | 264 | |||||||||||||||
Total Residential | 11 | $ | 6,777 | 29 | $ | 27,843 |
Six Months Ended June 30, | |||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
Units/Lots | Revenues | Average Cost per Unit/Lot | Units/Lots | Revenues | Average Cost per Unit/Lot | ||||||||||||||||
W Austin Residences | |||||||||||||||||||||
Condominium Units | 3 | $ | 4,420 | $ | 1,230 | 26 | $ | 37,763 | $ | 1,229 | |||||||||||
Barton Creek | |||||||||||||||||||||
Calera: | |||||||||||||||||||||
Verano Drive | 9 | 3,524 | 181 | 15 | 4,535 | 176 | |||||||||||||||
Calera Drive | — | — | — | 4 | 898 | 139 | |||||||||||||||
Amarra Drive: | |||||||||||||||||||||
Phase I Lots | — | — | — | 1 | 300 | 259 | |||||||||||||||
Phase II Lots | 9 | 4,182 | 185 | 1 | 600 | 264 | |||||||||||||||
Mirador Estate | — | — | — | 1 | 405 | 264 | |||||||||||||||
Total Residential | 21 | $ | 12,126 | 48 | $ | 44,501 |
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Revenues: | ||||||||||||||||
Real estate operations | $ | 6,824 | $ | 28,043 | $ | 12,255 | $ | 46,905 | ||||||||
Hotel | 10,560 | 9,816 | 21,372 | 19,895 | ||||||||||||
Entertainment | 3,513 | 3,424 | 9,000 | 6,632 | ||||||||||||
Commercial leasing | 1,624 | 1,242 | 3,193 | 2,552 | ||||||||||||
Total revenues | 22,521 | 42,525 | 45,820 | 75,984 | ||||||||||||
Cost of sales: | ||||||||||||||||
Real estate operations | 4,682 | 23,833 | 8,500 | 39,785 | ||||||||||||
Hotel | 7,641 | 7,538 | 15,273 | 14,812 | ||||||||||||
Entertainment | 2,515 | 2,979 | 6,536 | 5,435 | ||||||||||||
Commercial leasing | 703 | 685 | 1,404 | 1,347 | ||||||||||||
Depreciation | 2,225 | 2,308 | 4,472 | 4,538 | ||||||||||||
Total cost of sales | 17,766 | 37,343 | 36,185 | 65,917 | ||||||||||||
Insurance settlement | (46 | ) | (1,785 | ) | (576 | ) | (1,785 | ) | ||||||||
General and administrative expenses | 1,959 | 2,014 | 4,021 | 3,778 | ||||||||||||
Total costs and expenses | 19,679 | 37,572 | 39,630 | 67,910 | ||||||||||||
Operating income | 2,842 | 4,953 | 6,190 | 8,074 | ||||||||||||
Interest expense, net | (974 | ) | (2,008 | ) | (1,823 | ) | (4,307 | ) | ||||||||
Loss on interest rate cap agreement | (170 | ) | — | (251 | ) | — | ||||||||||
Other income, net | 3 | 95 | 22 | 1,345 | a | |||||||||||
Income before income taxes and equity in unconsolidated affiliates' income (loss) | 1,701 | 3,040 | 4,138 | 5,112 | ||||||||||||
Equity in unconsolidated affiliates' (loss) income | (243 | ) | 149 | 438 | 111 | |||||||||||
Provision for income taxes | (194 | ) | (222 | ) | (420 | ) | (425 | ) | ||||||||
Net income | 1,264 | 2,967 | 4,156 | 4,798 | ||||||||||||
Net income attributable to noncontrolling interests in subsidiaries | (1,045 | ) | (2,335 | ) | (2,840 | ) | (3,013 | ) | ||||||||
Net income attributable to Stratus common stock | $ | 219 | $ | 632 | $ | 1,316 | $ | 1,785 | ||||||||
Basic and diluted net income per share attributable to Stratus common stock | $ | 0.03 | $ | 0.08 | $ | 0.16 | $ | 0.22 | ||||||||
Weighted-average shares of common stock outstanding: | ||||||||||||||||
Basic | 8,030 | 8,099 | 8,040 | 8,102 | ||||||||||||
Diluted | 8,068 | 8,131 | 8,085 | 8,133 | ||||||||||||
a. | Includes $0.7 million of interest collected in connection with a municipal utility district reimbursement and $0.5 million for a gain on recovery of land previously sold. |
June 30, 2014 | December 31, 2013 | |||||||
ASSETS | ||||||||
Cash and cash equivalents | $ | 24,260 | a | $ | 21,307 | |||
Restricted cash | 4,550 | 5,077 | ||||||
Real estate held for sale | 20,233 | 18,133 | ||||||
Real estate under development | 93,973 | 76,891 | ||||||
Land available for development | 21,351 | 21,404 | ||||||
Real estate held for investment, net | 178,577 | 182,530 | ||||||
Investment in unconsolidated affiliates | 3,520 | 4,427 | ||||||
Other assets | 17,068 | 17,174 | ||||||
Total assets | $ | 363,532 | $ | 346,943 | ||||
LIABILITIES AND EQUITY | ||||||||
Accounts payable | $ | 6,133 | $ | 5,143 | ||||
Accrued liabilities | 6,617 | 9,360 | ||||||
Debt | 168,937 | 151,332 | ||||||
Other liabilities and deferred gain | 12,996 | 11,792 | ||||||
Total liabilities | 194,683 | 177,627 | ||||||
Commitments and contingencies | ||||||||
Equity: | ||||||||
Stratus stockholders' equity: | ||||||||
Common stock | 91 | 91 | ||||||
Capital in excess of par value of common stock | 203,944 | 203,724 | ||||||
Accumulated deficit | (59,408 | ) | (60,724 | ) | ||||
Accumulated other comprehensive loss | (326 | ) | (22 | ) | ||||
Common stock held in treasury | (20,275 | ) | (19,448 | ) | ||||
Total Stratus stockholders' equity | 124,026 | 123,621 | ||||||
Noncontrolling interests in subsidiariesb | 44,823 | 45,695 | ||||||
Total equity | 168,849 | 169,316 | ||||||
Total liabilities and equity | $ | 363,532 | $ | 346,943 | ||||
a. | Includes $6.9 million available to Stratus, $0.8 million available to the Parkside Village project and $16.5 million available to the W Austin Hotel & Residences project. |
b. | Primarily relates to Canyon-Johnson's interest in the W Austin Hotel & Residences project. |
Six Months Ended | ||||||||
June 30, | ||||||||
2014 | 2013 | |||||||
Cash flow from operating activities: | ||||||||
Net income | $ | 4,156 | $ | 4,798 | ||||
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | ||||||||
Depreciation | 4,472 | 4,538 | ||||||
Cost of real estate sold | 6,081 | 31,375 | ||||||
Stock-based compensation | 220 | 157 | ||||||
Equity in unconsolidated affiliates' income | (438 | ) | (111 | ) | ||||
Deposits | (101 | ) | (113 | ) | ||||
Purchases and development of real estate properties | (24,817 | ) | (8,728 | ) | ||||
Recovery of land previously sold | — | (485 | ) | |||||
Municipal utility district reimbursement | — | 208 | ||||||
Decrease (increase) in other assets | 1,093 | (12,631 | ) | |||||
(Decrease) increase in accounts payable, accrued liabilities and other | (1,233 | ) | 1,366 | |||||
Net cash (used in) provided by operating activities | (10,567 | ) | 20,374 | |||||
Cash flow from investing activities: | ||||||||
Capital expenditures | (953 | ) | (632 | ) | ||||
Return of investment in (investment in) unconsolidated affiliates | 1,345 | (700 | ) | |||||
Net cash provided by (used in) investing activities | 392 | (1,332 | ) | |||||
Cash flow from financing activities: | ||||||||
Borrowings from credit facility | 23,500 | 9,000 | ||||||
Payments on credit facility | (6,828 | ) | (23,368 | ) | ||||
Borrowings from project loans | 6,000 | 1,568 | ||||||
Payments on project and term loans | (5,067 | ) | (443 | ) | ||||
Noncontrolling interests distributions | (3,581 | ) | (103 | ) | ||||
Repurchase of treasury stock | (637 | ) | (623 | ) | ||||
Net payments for stock-based awards | (190 | ) | (72 | ) | ||||
Financing costs | (69 | ) | — | |||||
Net cash provided by (used in) financing activities | 13,128 | (14,041 | ) | |||||
Net increase in cash and cash equivalents | 2,953 | 5,001 | ||||||
Cash and cash equivalents at beginning of year | 21,307 | 12,784 | ||||||
Cash and cash equivalents at end of period | $ | 24,260 | $ | 17,785 |
Real Estate Operationsa | Hotel | Entertainment | Commercial Leasing | Eliminations and Otherb | Total | ||||||||||||||||||
Three Months Ended June 30, 2014: | |||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||
Unaffiliated customers | $ | 6,824 | $ | 10,560 | $ | 3,513 | $ | 1,624 | $ | — | $ | 22,521 | |||||||||||
Intersegment | 24 | 99 | 11 | 132 | (266 | ) | — | ||||||||||||||||
Cost of sales, excluding depreciation | 4,696 | 7,642 | 2,598 | 727 | (122 | ) | 15,541 | ||||||||||||||||
Depreciation | 57 | 1,457 | 311 | 438 | (38 | ) | 2,225 | ||||||||||||||||
Insurance settlement | (46 | ) | — | — | — | — | (46 | ) | |||||||||||||||
General and administrative expenses | 1,465 | 143 | 52 | 445 | (146 | ) | 1,959 | ||||||||||||||||
Operating income | $ | 676 | $ | 1,417 | $ | 563 | $ | 146 | $ | 40 | $ | 2,842 | |||||||||||
Capital expendituresc | $ | 16,826 | $ | 27 | $ | — | $ | 438 | $ | — | $ | 17,291 | |||||||||||
Total assets at June 30, 2014 | 156,604 | 113,048 | 50,054 | 49,587 | (5,761 | ) | 363,532 |
Three Months Ended June 30, 2013: | |||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||
Unaffiliated customers | $ | 28,043 | $ | 9,816 | $ | 3,424 | $ | 1,242 | $ | — | $ | 42,525 | |||||||||||
Intersegment | 26 | 50 | 15 | 150 | (241 | ) | — | ||||||||||||||||
Cost of sales, excluding depreciation | 23,861 | 7,532 | 3,000 | 705 | (63 | ) | 35,035 | ||||||||||||||||
Depreciation | 59 | 1,558 | 310 | 418 | (37 | ) | 2,308 | ||||||||||||||||
Insurance settlement | (1,785 | ) | — | — | — | — | (1,785 | ) | |||||||||||||||
General and administrative expenses | 1,661 | 116 | 51 | 325 | (139 | ) | 2,014 | ||||||||||||||||
Operating income (loss) | $ | 4,273 | $ | 660 | $ | 78 | $ | (56 | ) | $ | (2 | ) | $ | 4,953 | |||||||||
Capital expendituresc | $ | 5,060 | $ | 2 | $ | 110 | $ | 450 | $ | — | $ | 5,622 | |||||||||||
Total assets at June 30, 2013 | 165,902 | 116,750 | 45,804 | 46,820 | (6,082 | ) | 369,194 |
Real Estate Operationsa | Hotel | Entertainment | Commercial Leasing | Eliminations and Otherb | Total | ||||||||||||||||||
Six Months Ended June 30, 2014: | |||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||
Unaffiliated customers | $ | 12,255 | $ | 21,372 | $ | 9,000 | $ | 3,193 | $ | — | $ | 45,820 | |||||||||||
Intersegment | 47 | 229 | 18 | 255 | (549 | ) | — | ||||||||||||||||
Cost of sales, excluding depreciation | 8,566 | 15,274 | 6,667 | 1,452 | (246 | ) | 31,713 | ||||||||||||||||
Depreciation | 113 | 2,930 | 630 | 873 | (74 | ) | 4,472 | ||||||||||||||||
Insurance settlement | (576 | ) | — | — | — | — | (576 | ) | |||||||||||||||
General and administrative expenses | 3,093 | 215 | 79 | 946 | (312 | ) | 4,021 | ||||||||||||||||
Operating income | $ | 1,106 | $ | 3,182 | $ | 1,642 | $ | 177 | $ | 83 | $ | 6,190 | |||||||||||
Capital expendituresc | $ | 24,817 | $ | 76 | $ | 32 | $ | 845 | $ | — | $ | 25,770 |
Six Months Ended June 30, 2013: | |||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||
Unaffiliated customers | $ | 46,905 | $ | 19,895 | $ | 6,632 | $ | 2,552 | $ | — | $ | 75,984 | |||||||||||
Intersegment | 40 | 132 | 23 | 281 | (476 | ) | — | ||||||||||||||||
Cost of sales, excluding depreciation | 39,841 | 14,812 | 5,489 | 1,387 | (150 | ) | 61,379 | ||||||||||||||||
Depreciation | 123 | 3,035 | 617 | 837 | (74 | ) | 4,538 | ||||||||||||||||
Insurance settlement | (1,785 | ) | — | — | — | — | (1,785 | ) | |||||||||||||||
General and administrative expenses | 3,164 | 190 | 74 | 627 | (277 | ) | 3,778 | ||||||||||||||||
Operating income (loss) | $ | 5,602 | $ | 1,990 | $ | 475 | $ | (18 | ) | $ | 25 | $ | 8,074 | ||||||||||
Capital expendituresc | $ | 8,728 | $ | 3 | $ | 119 | $ | 510 | $ | — | $ | 9,360 |
a. | Includes sales commissions and other revenues together with related expenses. |
b. | Includes eliminations of intersegment amounts, including the deferred development fee income between Stratus and the joint venture with Canyon-Johnson. |
c. | Also includes purchases and development of residential real estate held for sale. |