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Sep 30, 2020
EPR Q3 2020 Earnings Report
EPR Properties reported results for the third quarter of 2020, showing a net loss but improvements in cash collections and property openings.
Key Takeaways
EPR Properties reported a net loss of $91.938 million for the third quarter of 2020. However, cash collections from customers improved, and the company maintained a strong liquidity position with nearly $1.0 billion in cash on hand. The company also extended covenant waivers on its bank credit facilities.
Cash collections from customers continued to improve, reaching 48% of contractual cash revenue in September.
Approximately 93% of non-theatre properties and 63% of theatre properties were open as of November 3, 2020.
The company had nearly $1.0 billion of cash on hand at quarter-end.
Waivers of certain covenants related to the company’s bank credit facilities have been extended through December 31, 2021.
EPR
EPR
EPR Revenue by Segment
Revenue by Segment
Rental Revenue
CapyFin.comOther Income Revenue
CapyFin.comMortgage and Other Financing Income Revenue
CapyFin.com Forward Guidance
EPR Properties focuses on liquidity and property openings amidst the COVID-19 pandemic, with extended debt covenant waivers providing flexibility. Uncertainty remains, particularly around theatre reopenings, but the company is encouraged by customer recovery and a stable balance sheet.
Positive Outlook
- Strong liquidity position with nearly $1.0 billion of cash on hand.
- Collections from customers are ramping up.
- Property openings are increasing.
- Extension of covenant waivers provides additional flexibility.
- Rent resolution reached with the vast majority of customers.
Challenges Ahead
- Continued uncertainty around the timing of a widespread reopening of theatres.
- Theatre customers facing challenges due to state and local restrictions and movie release delays.
- Additional deferral agreements being negotiated with certain theatre customers.
- Write-offs of accounts receivable due to placing two customers on cash basis.
- Restrictions on paying dividends on common shares during the covenant relief period.
Revenue & Expenses
Visualization of income flow from segment revenue to net income