Stratus Properties Inc. (NASDAQ:STRS) Q2 2020 Earnings Conference Call - Final Transcript

Aug 10, 2020 • 11:00 am ET

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Stratus Properties Inc. (NASDAQ:STRS) Q2 2020 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good day and welcome to the Stratus Properties' Second Quarter 2020 Financial and Operational Conference Call. Earlier this morning, Stratus released a press release announcing its second quarter 2020 financial results. The press release is available on Stratus' website at stratusproperties.com.

Following management's remarks, we will host a question-and-answer session. Please note this call is being recorded and will be available for telephone replay on Stratus' website through August 15, 2020. Anyone listening to the taped replay should note that all information presented is current as of today, August 10, 2020 and should be considered valid only as of this date.

As a reminder, today's press release and certain comments that will be made on this call include forward-looking statements and actual results may differ materially. Please review and refer to the cautionary language included in Stratus' press release issued today and the risk factors described in Stratus' 2019 Form 10-K and second quarter 2020 Form 10-Q that could cause actual results to differ materially from those projected by Stratus.

In addition, management will discuss earnings before interest, taxes, depreciation and amortization, also referred to as EBITDA, which is a financial measure not recognized under U.S. generally accepted accounting principles, also referred to as GAAP. As required by SEC rules and regulations, this non-GAAP financial measure is reconciled to its most comparable GAAP financial measure in a supplemental schedule of Stratus' press release issued today.

I would now like to turn the conference over to. Mr. Beau Armstrong, Chairman, President and Chief Executive Officer of Stratus Properties.

Executive
William H. Armstrong III

Thank you for joining our second quarter 2020 financial and operational conference call. Our Chief Financial Officer, Erin Pickens is also here with me today.

As always, I hope that you and your families are staying safe and healthy during this time. I would like to begin the call by discussing trends we are seeing in the market and the related impacts on our business, then I will discuss our liquidity position in several of our focus areas to manage costs and liquidity during the pandemic. Lastly, I will reiterate how our long-term strategy remains intact, even in current market conditions.

We had hoped that the market in COVID-19 situation would have shown improvement during the course of the second quarter, but instead we have seen an increased rate of COVID-19 cases and renewed government mandated restriction across Texas. Although we remain very cautious given the uncertainties caused by this pandemic, we continue to progress several important projects through the entitlement phase of development, which is the least capital intensive portion of the development process, and where we believe the value is created. We will continue to move the entitlement processes along [Phonetic] long, but will only proceed with construction when we are confident that the market is ready.

Our W Hotel and ACL Live and 3TEN ACL Live venues have been and continue to be severely impacted by the pandemic. Last quarter, we mentioned that we had scheduled several events for the summer