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Jun 30, 2020

EPR Q2 2020 Earnings Report

EPR Properties reported results that were negatively impacted by the COVID-19 pandemic, but the company had taken steps to manage through this difficult time, including fortifying the balance sheet and maintaining sufficient liquidity.

Key Takeaways

EPR Properties announced its Q2 2020 results, which were significantly impacted by the COVID-19 pandemic. The company reported a net loss of $68.999 million, or $0.90 per diluted share, and total revenue of $106.360 million. Despite these challenges, EPR Properties highlighted its strong liquidity position with over $1.0 billion of cash on hand and progress in restructuring AMC leases and reaching agreements with customers.

Strong Liquidity Position - With over $1.0 billion of cash on hand, it is currently estimated that the Company would have approximately six years of liquidity even if the elevated second quarter negative cash run rate were to persist.

Property Openings - Approximately 88% of non-theatre properties are open as of August 4, 2020.

Restructured AMC Leases - In exchange for agreeing with AMC to place 46 of the Company's 53 AMC leased theatres into a new master lease that reduces future restructuring risk and increases the average lease term by 9 years, the Company agreed to reduce annual fixed minimum rents by approximately 21%.

Collections - Through August 4, 2020, customers paid approximately 21% of second quarter pre-COVID contractual cash rent and interest payments.

Total Revenue
$106M
Previous year: $176M
-39.5%
EPS
$0.41
Previous year: $1.36
-69.9%
AFFO per Share
$0.44
Previous year: $1.37
-67.9%
Gross Profit
$91M
Previous year: $161M
-43.4%
Cash and Equivalents
$1.01B
Previous year: $6.93M
+14437.0%
Total Assets
$7B
Previous year: $6.75B
+3.8%

EPR

EPR

EPR Revenue by Segment

Forward Guidance

The Company anticipates having a lower quarterly cash burn rate subsequent to the second quarter as collections are expected to continue to improve

Revenue & Expenses

Visualization of income flow from segment revenue to net income