Venu Holding Corporation

Good afternoon and welcome to Venue Holding Corporation's second quarter 2025 financial results and business update. Earlier today, Venue, trading under the ticker symbol VENU, issued a press release summarizing the company's second quarter 2025 performance following the filing of its quarterly report on form 10-Q for the period ending June 30, 2025. This conference call is being recorded and will be available online along with the earnings press release at Venu.live in accordance with the company's retention policies. All participants on today's call are in listen only mode. Following our prepared remarks, we will open the line for a Q&A session. At this time, I'd like to turn the call over to Heather Atkinson, Chief Financial Officer of Venu Holding Corporation. Heather, please go ahead.

Thank you all for joining Venu Holding Corporation's June 30, 2025 second quarter earnings call and business update. On the call today, we have our senior leadership team, myself, founder, chairman and CEO, JW Roth, COO and President Will Hodson, President Tom Ashley and President Terry Liebler. Following the Safe Harbor Statement, JW will begin with a review from across the business and key highlights from the quarter. I will then present a summary of our quarterly financial results. After that, Will is going to provide details and operational insights. Finally, as our operator mentioned, we'll open the call for questions. We'd like to remind everyone that various remarks about future expectations, plans and prospects constitute forward-looking statements for purposes of Safe Harbor provisions under the Private Securities Litigation Reform Act of 1995. Venu cautions that these forward-looking statements are subject to risks and uncertainties that may cause our actual results to differ materially from those indicated, including risks described in the company's annual report on Form 10Q for the quarter ended June 30, 2025 and on our other filings with the SEC, all of which can be reviewed on the company's website at venu.live, spelled -N-U dot -V-E, or on the SEC's website at SEC.gov. Any forward-looking statements made on this conference call speak only as of today's date, Thursday, August 14, 2025, and Venu does not intend to update any of these forward-looking statements to reflect events or circumstances that would occur after today's date, except as may be required by federal security laws. With that, I'd like to turn the call over to our founder, chairman and CEO, J.W. Rodham. J.W.?

Great. Thank you, Heather. And thanks to me and to all of you for being here. I'm going to dig into some prepared remarks and then we'll move on to our question and answer session. As we close out this quarter, we're seeing the pieces come together for what's going to be a defining moment in our growth history. While our attention this quarter has been heavily on our balance sheet, it's all with the P&L in mind. Every decision that we make today, every ticket that we sell, every alliance that we form, and every strategic transaction is designed to fuel long-term profitability. We're building the foundation today to keep pace with and sustain our growth. Here's the deal. Our growth is guided by four clear priorities. First, expanding our markets across the nation. Second, bringing current developments over the finish line and packing their calendars with great content. Third, growing our fire pit suite sales with a focus on high-impact, triple net transactions that go straight on to our balance sheet. And finally, unlocking strategic value through high-value opportunities like naming rights and sale lease backs. Let's start with our pipeline. We've built a powerful development engine anchored by a rigorous site selection process that ensures every location we choose is backed by a strong public-private partnership. Our municipal pipeline now includes 38 communities engaged in conversations about bringing venue to their area. To accelerate these agreements, we have a strong partnership with industry leader Ryan LLC. This three-year partnership is tasked with delivering two new municipalities every quarter. And on average, we can expect to add between $150 to $300 million to our balance sheet with each delivered development agreement. Typically, this process takes about 12 to 14 months to break ground and then another 14 months or so to build. Depending on market size, site selection includes amphitheaters and indoor entertainment campuses. The demand is undeniable. Why not every municipality will ultimately see a world-class venue within their city limits? The sheer volume of interest speaks to scale of our outreach. On the construction side, we have a big year ahead. Currently on track to open three new amphitheaters that will host year-round programming as well as one new entertainment campus in Centennial, Colorado, set to open in 2026. As mentioned in previous reports, Lux Fire Suite sales are the backbone of everything we're building. And remember, these sales go directly onto our balance sheet. Until now, these opportunities have been sold through upfront cash or structured financing models. But back in May, we announced the newest way to ownership, a triple net real estate leaseback model, sold both directly and through our partners at Sands Investment Group. Unlike traditional sales, triple net deals not only generate upfront cash but also deliver lasting impact on future earnings with the retention of premium inventories. Since that announcement, we have seen an immense surge in that demand. This program is growing fast and has far exceeded early forecasts. We believe that this will eventually become the new flagship program in our ecosystem here at Venue. Further, one of the most exciting milestones is a project that is currently on the horizon. From the day we began our journey, we have been clear on how we intend to fund all of our expansion, partially through public-private partnerships, partially through the sale of our fire suites, and then toward the end of every project, the sale leaseback of the ground underneath the development. The current opportunity is intended to complete the financing of our fire suites and will likely result in a development profit. We have been presented with a significant opportunity to alleviate, I'm sorry, to activate sale leaseback opportunities. Once completed and accepted, the current one is expected to generate $188 million in, $188 million. And a development profit of roughly $35 million in the fourth quarter of this year with another $35 million expected in the fourth quarter of 2026. If Q2 proved anything, it's that the foundation is set and we are roaring ahead. The fans are getting what they've always deserved. Our model is working. Municipalities are hungry. Momentum is real and the market is ours to take. In closing, everything that we've been working on is pointing to a development profit in the fourth quarter of this year and operationally profit in third quarter, fourth quarter of 2026. The future we've been building toward is right in front of us and it's coming fast. We are on pace to add more than $5 billion in completed project value over the next 36 to 48 months. And if Q2 is any sign, we've laid the foundation for big things to come. With this strong momentum in mind, I will now turn it over to our Chief Financial Officer, Heather Atkinson.