Stratus Properties Inc. Reports Fourth-Quarter and Twelve-Month 2005 Results and Updates Development Activities.AUSTIN Austin.1 City (1990 pop. 21,907), seat of Mower co., SE Minn., on the Cedar River, near the Iowa line; inc. 1868. The commercial and industrial center of a rich farm region, it is noted as home to the Hormel meatpacking company, whose Spam Town museum , Texas -- Stratus stratus: see cloud. (Stratus Technologies, Maynard, MA, www.stratus.com) A manufacturer of fault-tolerant computers founded in 1980. It supports both the VOS and FTX Unix operating systems on its XA/R line of i860-based systems. Properties Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : STRS STRS State Teachers Retirement System STRS Sir Thomas Rich's School (UK) STRS Stimulated Thermal Rayleigh Scattering STRS Supplier Test Report System STRS Straight Talk Retirement System (software) ): HIGHLIGHTS --Fourth-quarter 2005 net income totaled $4.7 million, $0.62 per share, compared with $2.4 million, $0.32 per share, in the year-ago quarter. Net income for the full-year 2005 was $8.5 million, $1.11 per share, compared with $0.7 million, $0.09 per share for 2004. --Fourth-quarter 2005 property sales totaled $12.5 million, including a 42-acre tract within the Circle C community for $2.6 million, compared with $8.5 million in the fourth quarter of 2004. 49 lots sold in the fourth quarter of 2005, compared with 14 lots in the fourth quarter of 2004. --For the first quarter of 2006, Stratus' scheduled real estate sales under existing homebuilder lot sale contracts include at least: --30 lots in its Circle C community for $1.8 million --15 lots at its Deerfield Deerfield, towns, United States Deerfield. 1 Village (1990 pop. 17,327), Cook and Lake counties, NE Ill., a residential suburb of Chicago; inc. 1903. The huge Sara Lee Bakery is its major industry, and there is other light manufacturing. project for $1.0 million --2 lots at its Wimberly Lane Phase II subdivision in the Barton Creek Barton Creek is one of the tributaries that feeds the Texas Colorado River from the Texas Hill Country. The creek passes through some of the more scenic areas in the Austin region and forms a greenbelt that is the habitat for many indigenous species of flora and fauna. community for $0.3 million --Stratus expects to sell its two office buildings at 7000 West for $22.3 million by the end of March 2006; historical financial results reported as "discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. ."
Fourth Quarter Twelve Months
---------------- -----------------
2005 2004 2005 2004
-------- ------- -------- --------
(In Thousands, Except
Per Share Amounts)
Revenues $13,142 $9,030 $35,194 $17,725
Operating income 4,517 2,350 8,336 338
Net income applicable to common
stock:
Net income from continuing
operations $ 4,411 $2,295 $ 7,960 $ 99
Income from discontinued operations 336 114 514 573
-------- ------- -------- --------
Net income applicable to common
stock $ 4,747 $2,409 $ 8,474 $ 672
======== ======= ======== ========
Diluted net income per share of
common stock:
Continuing operations $ 0.58 $ 0.30 $ 1.04 $ 0.01
Discontinued operations 0.04 0.02 0.07 0.08
-------- ------- -------- --------
Diluted net income per share of
common stock $ 0.62 $ 0.32 $ 1.11 $ 0.09
======== ======= ======== ========
Diluted average shares of common
stock outstanding 7,641 7,632 7,636 7,570
Stratus Properties Inc. (NASDAQ: STRS) reported net income of $4.7 million, $0.62 per share, for the fourth quarter of 2005, compared to $2.4 million, $0.32 per share, for the fourth quarter of 2004. Net income from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the totaled $4.4 million, $0.58 per share, for the fourth quarter of 2005, compared to $2.3 million, $0.30 per share, for the fourth quarter of 2004. For the twelve months ended December December: see month. 31, 2005, Stratus reported net income of $8.5 million, $1.11 per share, compared with $0.7 million, $0.09 per share, for the twelve months ended December 31, 2004. Net income from continuing operations totaled $8.0 million, $1.04 per share, for the twelve months ended December 31, 2005, compared to $0.1 million, $0.01 per share, for the twelve months ended December 31, 2004. As a result of Stratus' decision during the fourth quarter of 2005 to sell its two office buildings at 7000 West, the related assets, liabilities, results of operations and cash flows have been segregated in Stratus' financial statements as "discontinued operations." Net income from discontinued operations was $0.3 million, $0.04 per share, in the fourth quarter of 2005 compared with $0.1 million, $0.02 per share, in the year-ago period. Net income from discontinued operations was $0.5 million, $0.07 per share, for the twelve months ended December 31, 2005, compared with $0.6 million, $0.08 per share, for the twelve months ended December 31, 2004. Subject to Stratus' satisfaction of certain conditions, Stratus expects to close on the 7000 West sale by the end of March 2006 for a sales price of $22.3 million, including assumption of the related project loan ($11.8 million balance at December 31, 2005) by the buyer. Real Estate Revenues. Stratus' real estate revenues for the fourth quarter of 2005 totaled $12.5 million. Fourth-quarter 2005 real estate sales included 23 residential lots within the Barton Creek community in Austin, Texas as follows: 14 lots at Calera Calera may refer to:
A court or courtyard is an enclosed area, often a space enclosed by a building that is open to the sky. homes at Calera Court for $1.0 million, two estate lots at the Escala Drive subdivision for $0.9 million and one estate lot at the Mirador subdivision for $0.6 million. Stratus' fourth-quarter sales within the Circle C community included the first 14 lots at Meridian Meridian (mərĭd`ēən), city (1990 pop. 41,036), seat of Lauderdale co., E Miss., near the Ala. line; settled 1831, inc. 1860. for $1.0 million and a 42-acre tract for $2.6 million. During the fourth quarter of 2005, Stratus also sold 12 lots at its Deerfield project in Plano, Texas Plano (IPA: /ˈpleɪnoʊ/) is a wealthy suburb of Dallas, Texas, located to the north, mainly within Collin County, but also extending into Denton County. According to the 2000 U.S. for $0.7 million. Stratus' real estate revenues for the fourth quarter of 2004 totaled $8.5 million, including sales within the Circle C community of 139 acres in the Meridian development for $5.6 million and an approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. one-acre commercial tract for $0.5 million. Residential estate lot sales included two lots at the Mirador subdivision for $0.9 million and one at the Escala Drive subdivision for $0.4 million. In accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with its contract with a national homebuilder, Stratus sold the first six lots of the Wimberly Lane Phase II subdivision for $0.9 million upon the completion of utilities for the subdivision. Stratus also sold the initial five lots at Deerfield for $0.3 million. Rental Income Noun 1. rental income - income received from rental properties income - the financial gain (earned or unearned) accruing over a given period of time and Other Revenues. For the fourth quarter of 2005, Stratus earned $0.4 million in rental income related to its nearly 100 percent leased 75,000-square-foot office building at 7500 Rialto Rialto, city (1990 pop. 72,388), San Bernardino co., S Calif., a residential suburb of San Bernardino; inc. 1911. The city has greatly expanded as a result of the economic and demographic growth of the southern California area. Boulevard boulevard Broad landscaped avenue that typically permits several lanes of vehicular traffic as well as pedestrian walkways. The earliest boulevards originally followed the city walls (the word originally meant “bulwark”) and were built in the ancient Middle , compared to $0.3 million for the 2004 period. Stratus' other revenues include management fees, sales commissions and the sale of development fee credits to third parties. In the fourth quarter of 2005, Stratus' sale of development fee credits to third parties totaled $0.2 million, compared with $0.1 million for the 2004 period. Development Activities. Lantana lantana (lăntā`nə): see verbena. lantana Any of more than 150 shrubs that make up the genus Lantana in the verbena family, native to the New World and African tropics. - In November November: see month. 2005, Stratus entered into an Agreement of Sale and Purchase with Advanced Micro Devices, Inc. (NYSE NYSE See: New York Stock Exchange : AMD (Advanced Micro Devices, Inc., Sunnyvale, CA, www.amd.com) A major manufacturer of semiconductor devices including x86-compatible CPUs, embedded processors, flash memories, programmable logic devices and networking chips. ) under which Stratus has agreed to sell AMD approximately 58 acres at its Lantana property for $21.2 million. The proposed AMD project consists of approximately 825,000 square feet of office and related uses on a 58-acre site. Subject to certain conditions, including obtaining certain permits and approvals from the City of Austin, the sale is expected to close during 2006. In February February: see month. 2006, the Save Our Springs Alliance Save Our Springs Alliance (SOS) was originally called the Save Our Springs Legal Defense Fund, a nonprofit corporation created to protect the citizen-drafted SOS Ordinance of 1992 to conserve Barton Springs in Austin, Texas. , Inc. filed a lawsuit lawsuit: see procedure; tort. against the City of Austin seeking, among other matters, to prevent the issuance of permits needed to develop the AMD project. Stratus has intervened in the litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. and plans to vigorously vig·or·ous adj. 1. Strong, energetic, and active in mind or body; robust. See Synonyms at healthy. 2. Marked by or done with force and energy. See Synonyms at active. defend its Lantana entitlements. Lantana is a partially developed, mixed-use mixed-use adj. Containing or zoned for commercial and residential facilities or development: a 40-story mixed-use tower; a mixed-use parcel of land. project with remaining entitlements for approximately 2.7 million square feet of office and retail use on 282 acres. Regional utility and road infrastructure is in place with capacity to serve Lantana at full build-out Build-out is an urban planner’s estimate of the amount and location of potential development for an area. Build-out is one step of the land use planning process. Evaluation of potential development impacts begins with a build-out analysis. permitted under existing entitlements. At December 31, 2005, Stratus' office building at 7500 Rialto Boulevard had an occupancy rate Noun 1. occupancy rate - the percentage of all rental units (as in hotels) are occupied or rented at a given time pct, per centum, percent, percentage - a proportion in relation to a whole (which is usually the amount per hundred) of approximately 96 percent. As demand for office space within Lantana has increased, Stratus commenced construction during 2006 of a second 75,000-square-foot office building at 7500 Rialto Boulevard. Downtown Downtown (called a "city centre" in British English) is a term used in North America when referring to a city's core, usually both in a geographical and commercial / community sense. Austin Project - In April 2005, the City of Austin selected Stratus' proposal to develop a mixed-use project in downtown Austin immediately north of the new City Hall complex. The project includes an entire city block and is suitable for a mixture of retail, office, hotel, residential and civic uses. Stratus has entered into a negotiation period with the City of Austin to reach agreement on the project's design and transaction terms and structure. Wimberly Lane Phase II. In May 2004, Stratus entered into a contract with a national homebuilder to sell 41 lots within the Wimberly Lane Phase II subdivision in the Barton Creek community. In June June: see month. 2004, the homebuilder paid Stratus a non-refundable $0.6 million deposit for the right to purchase the 41 lots. The deposit was used to pay ongoing development costs of the lots. The deposit will be applied against subsequent purchases of lots by the homebuilder after certain thresholds are achieved and will be recognized by Stratus as income as lots are sold. The lots are being sold on a scheduled takedown Takedown 1. The price at which underwriters obtain securities to be offered to the public. 2. The portion of securities that each investment banker will distribute in a secondary or initial pubic offering. Notes: 1. basis, with the initial six lots sold in December 2004 following completion of subdivision utilities, and then an average of three lots per quarter beginning in June 2005. The average purchase price for each of the 41 lots is $150,400, subject to a six percent annual escalator escalator Moving staircase used as transportation between floors or levels in stores, airports, subways, and other mass pedestrian areas. The name was first applied to a moving stairway shown at the Paris Exposition of 1900. commencing in December 2004. During 2005, a total of 10 of these lots were sold. Wimberly Lane Phase II also included six estate lots, each averaging approximately five acres, which Stratus retained, marketed and sold in 2005 for a total of $1.8 million. Deerfield. In January January: see month. 2004, Stratus acquired the Deerfield property in Plano, Texas, for $7.0 million. The property is zoned and subject to a preliminary subdivision plan for 234 residential lots. In February 2004, Stratus executed executed 1) adj. to have been completed. (Example: "it is an executed contract") 2) v. to have completed or fully performed. (Example: "he executed all the promises made in the contract") 3) v. an Option Agreement and a Construction Agreement with a national homebuilder. Pursuant to the Option Agreement, the homebuilder paid Stratus $1.4 million for an option to purchase all 234 lots over 36 monthly take-downs. The net purchase price for each of the 234 lots was $61,500, subject to certain terms and conditions. The $1.4 million option payment is non-refundable, but will be applied against subsequent purchases of lots by the homebuilder after certain thresholds are achieved and will be recognized by Stratus as income as lots are sold. The Construction Agreement requires the homebuilder to complete development of the entire project by March 15, 2007. Stratus agreed to pay up to $5.2 million of the homebuilder's development costs. The homebuilder must pay all property taxes and maintenance costs. In February 2004, Stratus entered into a $9.8 million three-year loan agreement with Comerica Comerica Incorporated NYSE: CMA is a financial services company headquartered in Dallas, Texas. The bank was founded in Detroit in 1849 as the Detroit Savings Fund Institute, by Elon Farnsworth. Bank (Comerica) to finance the acquisition and development of Deerfield. Development is proceeding on schedule and Stratus had $6.9 million in remaining availability under the loan at December 31, 2005. The initial lot sale occurred in November 2004 and subsequent lot sales are on schedule with 68 lot sales closed in 2005. In October October: see month. 2005, Stratus executed a revised agreement with the homebuilder, increasing the lot sizes and average purchase price to $67,150 based on a new total of 224 lots. Stratus expects to complete 15 lot sales for $1.0 million during the first quarter of 2006. Circle C Community. Stratus has commenced development activities at the Circle C community based on the entitlements secured in its Circle C settlement with the City of Austin. The Circle C settlement permits development of approximately 1.0 million square feet of commercial space and 1,730 residential units, including 900 multi-family units and 830 single family residential lots. In 2004, Stratus and the City of Austin amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. the Circle C settlement to increase the amount of permitted commercial space from 1.0 million square feet to 1.16 million square feet in exchange for a decrease in allowable multi-family units from 900 units to 504 units. The preliminary plan has been approved for Meridian, an 800-lot residential development at the Circle C community. In October 2004, Stratus received final City of Austin plat A map of a town or a section of land that has been subdivided into lots showing the location and boundaries of individual parcels with the streets, alleys, easements, and rights of use over the land of another. and construction permit approvals for the first phase of Meridian, and construction commenced in January 2005. During the first quarter of 2005, Stratus contracted to sell a total of 494 lots in its Meridian project to three national homebuilders in four phases. Sales for each of the four phases commence upon substantial completion of development for that phase, and continue every quarter until all of the lots have been sold. The first phase, which includes 134 lots, was substantially completed at the end of 2005. Development of the second phase of 134 lots commenced in the third quarter of 2005 and was substantially completed in March 2006. Stratus sold a total of 14 lots during 2005 and estimates its sales from the first two phases of Meridian will total at least 30 lots for $1.8 million during the first quarter of 2006. In addition, several retail sites at the Circle C community have received final City of Austin approvals and are being developed. Zoning for Escarpment escarpment or scarp, long cliff, bluff, or steep slope, caused usually by geologic faulting (see fault) or by erosion of tilted rock layers. An example of a fault scarp is the north face of the San Jacinto Mts. in California. Village, a 168,000-square-foot retail project anchored by a grocery store, was approved during the second quarter of 2004, and construction is progressing with completion expected by mid- mid- pref. Middle: midbrain. 2006. In December 2004, Stratus obtained an $18.5 million project loan from Comerica to fund the construction of Escarpment Village, as well as a $22.8 million commitment from the Teachers Insurance and Annuity annuity: see insurance. annuity Payment made at a fixed interval. A common example is the payment received by retirees from their pension plan. There are two main classes of annuities: annuities certain and contingent annuities. Association of America America [for Amerigo Vespucci], the lands of the Western Hemisphere—North America, Central (or Middle) America, and South America. The world map published in 1507 by Martin Waldseemüller is the first known cartographic use of the name. for a long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. mortgage for the completed project. Crestview Crestview is the name of 2 places in the United States:
v. To bring together, as cut edges of tissue. adj. 1. Relating to the contact surfaces, either proximal or distal, of two adjacent teeth; proximate. 2. Close together. 74-acre tract at the intersection intersection /in·ter·sec·tion/ (-sek´shun) a site at which one structure crosses another. intersection a site at which one structure crosses another. of Airport Boulevard and Lamar Boulevard in Austin, Texas, for $7.7 million. With its joint venture partner, Stratus has commenced brown field remediation and permitting of the property, known as the Crestview Station project, for single-family sin·gle-fam·i·ly adj. Relating to or being a dwelling designed for one family only: a single-family home; single-family occupancy. , multi-family, retail and office development, with closings on the single-family and multi-family components expected to occur in 2007 upon completion of the remediation. The Crestview Station property is divided into three distinct parcels - one containing approximately 46 acres, a second consisting of approximately 27 acres, and a third 0.5-acre tract. The joint venture partnership has contracted with a nationally recognized remediation firm to demolish de·mol·ish tr.v. de·mol·ished, de·mol·ish·ing, de·mol·ish·es 1. To tear down completely; raze. 2. To do away with completely; put an end to. 3. the existing buildings and remediate re·me·di·a·tion n. The act or process of correcting a fault or deficiency: remediation of a learning disability. re·me the 27-acre and 0.5-acre tracts as part of preparing them for residential permitting. Under the terms of the remediation contract, the joint venture partnership will pay the contractor contractor n. 1) a person or entity that enters into a contract. 2) commonly, a person or entity that agrees to construct a building or to provide or install specialized portions of the construction. approximately $4.9 million upon completion of performance benchmarks and certification by the State of Texas that the remediation is complete. The contractor is required to pay all costs associated with the remediation and to secure an environmental liability policy with $10.0 million of coverage remaining in place for a 10-year term. Pursuant to the agreement with the contractor, all environmental and legal liability was assigned as·sign tr.v. as·signed, as·sign·ing, as·signs 1. To set apart for a particular purpose; designate: assigned a day for the inspection. 2. to and assumed by the contractor effective November 30, 2005. Calera. During 2004, Stratus completed construction of four courtyard homes at Calera Court within the Barton Creek community, two of which were sold in October 2005 and one of which was sold in the first quarter of 2004. Calera Court, the initial phase of the "Calera" subdivision, will include 17 courtyard homes on 16 acres. The second phase of Calera, Calera Drive, consisting of 53 single-family lots, many of which adjoin the Fazio Canyons golf course, received final plat and construction permit approval in 2005. In the third quarter of 2005, development of these lots was completed and the initial five lots were sold for $2.1 million. During the fourth quarter of 2005, Stratus sold an additional 14 lots for $5.0 million. Development of the third and last phase of Calera, which will include approximately 70 single-family lots, is scheduled to commence in 2006. Stratus is a diversified diversified (di·verˑ·s real estate company engaged in the acquisition, development, management and sale of commercial, multi-family and residential real estate properties located primarily in the Austin, Texas area. CAUTIONARY STATEMENT. This press release contains certain forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. regarding proposed real estate sales and development activities at the Deerfield project, the Barton Creek community, the Circle C community and at Lantana, the 7000 West sale and the proposed development of a mixed-use project in downtown Austin. Important factors that might cause future results to differ from those projections include economic and business conditions, the availability of financing, regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. approvals and environmental regulations, which are described in more detail in Stratus' 2004 Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. filed with the Securities and Exchange Commission. A copy of this release is available on our web site, www.stratusproperties.com.
STRATUS PROPERTIES INC.
CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
(In Thousands, Except Per Share Amounts)
Three Months Twelve Months
Ended Ended
December 31, December 31,
---------------- -----------------
2005 2004 2005 2004
-------- ------- -------- --------
Revenues:
Real estate $12,523 $8,528 $33,003 $16,430
Rental income 370 307 1,353 874
Commissions, management fees
and other 249 195 838 421
-------- ------- -------- --------
Total revenues 13,142 9,030 35,194 17,725
Cost of sales:
Real estate, net 6,562 5,348 19,625 11,119
Rental, net 396 260 1,456 1,201
Depreciation 186 187 758 615
-------- ------- -------- --------
Total cost of sales 7,144 5,795 21,839 12,935
General and administrative
expenses 1,481 885 5,019 4,452
-------- ------- -------- --------
Total costs and expenses 8,625 6,680 26,858 17,387
-------- ------- -------- --------
Operating income 4,517 2,350 8,336 338
Interest expense, net (168) (90) (529) (309)
Interest income 135(a) 35 226(a) 70
-------- ------- -------- --------
Income from continuing
operations before income taxes 4,484 2,295 8,033 99
Provision for income taxes (73) - (73) -
-------- ------- -------- --------
Net income from continuing
operations 4,411 2,295 7,960 99
Income from discontinued
operations(b) 336 114 514 573(c)
-------- ------- -------- --------
Net income applicable to
common stock $ 4,747 $2,409 $ 8,474 $ 672
======== ======= ======== ========
Basic net income per share of
common stock:
Continuing operations $ 0.61 $ 0.31 $ 1.11 $ 0.01
Discontinued operations(b) 0.05 0.02 0.07 0.08
-------- ------- -------- --------
Basic net income per share
of common stock $ 0.66 $ 0.33 $ 1.18 $ 0.09
======== ======= ======== ========
Diluted net income per share
of common stock:
Continuing operations $ 0.58 $ 0.30 $ 1.04 $ 0.01
Discontinued operations(b) 0.04 0.02 0.07 0.08
-------- ------- -------- --------
Diluted net income per share
of common stock $ 0.62 $ 0.32 $ 1.11 $ 0.09
======== ======= ======== ========
Average shares of common
stock outstanding:
Basic 7,206 7,212 7,209 7,196
======== ======= ======== ========
Diluted 7,641 7,632 7,636 7,570
======== ======= ======== ========
(a) Includes interest on Municipal Utility District reimbursements
totaling $0.1 million.
(b) Relates to the operations of 7000 West, which Stratus expects to
sell in March 2006.
(c) Includes a $0.7 million reimbursement of certain building repairs
received from a settlement with the general contractor responsible
for construction of the 7000 West office buildings.
STRATUS PROPERTIES INC.
CONSOLIDATED BALANCE SHEETS (Unaudited)
(In Thousands)
December 31,
---------------------
2005 2004
--------- ---------
ASSETS
Current assets:
Cash and cash equivalents, including restricted
cash of $387 and $124, respectively $ 1,901 $ 379
Notes receivable from property sales - 27
Accounts receivable 42 189
Deposits, prepaid expenses and other 849(a) 393
Discontinued operations(b) 12,230 345
--------- ---------
Total current assets 15,022 1,333
--------- ---------
Real estate, commercial leasing assets and
facilities, net:
Property held for sale - developed or
under development 127,450 104,526
Property held for sale - undeveloped 16,071 20,919
Property held for use, net 9,452 9,926
Investment in Crestview 4,157 -
Other assets 1,734 2,474
Discontinued operations(b) - 12,894
Notes receivable from property sales - 789
--------- ---------
Total assets $173,886 $152,861
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued liabilities $ 6,305 $ 1,091
Accrued interest, property taxes and other 3,710 2,263
Current portion of long-term debt 169 1,327
Discontinued operations(b) 12,036 583
--------- ---------
Total current liabilities 22,220 5,264
Long-term debt 50,135 42,320
Other liabilities 7,364 5,164
Discontinued operations(b) - 11,917
--------- ---------
Total liabilities 79,719 64,665
--------- ---------
Stockholders' equity:
Common stock 74 72
Capital in excess of par value of common stock 182,007 181,145
Accumulated deficit (82,943) (91,417)
Unamortized value of restricted stock units (567) (841)
Common stock held in treasury (4,404) (763)
--------- ---------
Total stockholders' equity 94,167 88,196
--------- ---------
Total liabilities and stockholders' equity $173,886 $152,861
========= =========
(a) Includes $0.6 million in deposits for infrastructure development.
(b) Relates to the assets and liabilities of 7000 West, which Stratus
expects to sell in March 2006.
STRATUS PROPERTIES INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
(In Thousands)
Years Ended
December 31,
-------------------
2005 2004
--------- ---------
Cash flow from operating activities:
Net income $ 8,474 $ 672
Adjustments to reconcile net income to
net cash provided by operating activities:
Income from discontinued operations(a) (514) (573)
Depreciation 758 615
Cost of real estate sold 17,057 8,938
Stock-based compensation 282 156
Long-term notes receivable 789 (615)
Loan deposits and deposits for infrastructure
development (274) (1,320)
Other 1,049 (441)
(Increase) decrease in working capital:
Accounts receivable and prepaid expenses (9) 503
Accounts payable, accrued liabilities and
other 8,859 1,394
--------- ---------
Net cash provided by continuing operations 36,471 9,329
Net cash provided by discontinued operations(a) 1,310 670
--------- ---------
Net cash provided by operating activities 37,781 9,999
--------- ---------
Cash flow from investing activities:
Purchases and development of real estate
properties (39,733) (21,463)
Municipal utility district reimbursements 4,600 910
Investment in Crestview (4,157) -
Development of commercial leasing properties
and other expenditures (284) (1,099)
--------- ---------
Net cash used in continuing operations (39,574) (21,652)
Net cash used in discontinued operations(a) (40) (36)
--------- ---------
Net cash used in investing activities (39,614) (21,688)
--------- ---------
Cash flow from financing activities:
Borrowings from revolving credit facility 55,005 16,414
Payments on revolving credit facility (59,684) (16,930)
Borrowings from project loans 17,583 9,176
Repayments on project loans (6,248) (610)
Net proceeds from exercise of stock options 639 795
Purchases of Stratus common shares (3,342) (248)
Bank credit facility fees (388) -
--------- ---------
Net cash provided by continuing operations 3,565 8,597
Net cash provided by (used in) discontinued
operations(a) (205) 58
--------- ---------
Net cash provided by financing activities 3,360 8,655
--------- ---------
Net increase (decrease) in cash and cash
equivalents 1,527 (3,034)
Cash and cash equivalents at beginning of year 379 3,413
--------- ---------
Cash and cash equivalents at end of year 1,906 379
Less cash at discontinued operations(a) (5) -
Less cash restricted as to use (387) (124)
--------- ---------
Unrestricted cash and cash equivalents
at end of year $ 1,514 $ 255
========= =========
(a) Relates to 7000 West, which Stratus expects to sell in March 2006.
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