LTC Announces First Quarter Operating Results (Business Wire)
Fri, 8 May 2009 21:56:00 Etc/GMT
The Company invested $2.0 million during the quarter ended March 31, 2009 to repurchase a total of 109,484 shares of its Series F Cumulative Preferred Stock (or Series F Preferred Stock) at an average cost of $18.27 per share, including commission. During the quarter ended March 31, 2008, the Company repurchased 636,300 shares of its Series F Preferred Stock for $14.3 million or an average cost including commission of $22.44 per share. The Series F Preferred Stock has a liquidation value of $25.00 per share and a dividend rate of 8.0%. The difference between the liquidation value and the repurchase price, netted with the original issue costs, has been included in calculating net income allocable to common stockholders.
The Company will conduct a conference call on Monday, May 11, 2009, at 10:00 a.m. Pacific time, in order to comment on the Company’s performance and operating results for the quarter ended March 31, 2009. The conference call is accessible by dialing 888-241-0558. The international number is 647-427-3417. The earnings release will be available on our website. An audio replay of the conference call will be available from May 11, 2009 through May 25, 2009. Callers can access the replay by dialing 800-695-9469 or 402-220-0618 and entering encore passcode number 92195624.
At March 31, 2009, LTC had investments in 100 skilled nursing properties, 101 assisted living properties and two schools in 30 states. The Company is a self-administered real estate investment trust that primarily invests in long-term care and other health care related facilities through mortgage loans, facility lease transactions and other investments. For more information on LTC Properties, Inc., visit the Company’s website at www.LTCProperties.com.
This press release includes statements that are not purely historical and are “forward looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements regarding the Company’s expectations, beliefs, intentions or strategies regarding the future. All statements other than historical facts contained in this press release are forward looking statements. These forward looking statements involve a number of risks and uncertainties. All forward looking statements included in this press release are based on information available to the Company on the date hereof, and the Company assumes no obligation to update such forward looking statements. Although the Company’s management believes that the assumptions and expectations reflected in such forward looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. The actual results achieved by the Company may differ materially from any forward looking statements due to the risks and uncertainties of such statements.
|
LTC PROPERTIES, INC. CONSOLIDATED STATEMENTS OF INCOME (Amounts in thousands, except per share amounts) (unaudited) |
|||||
|
Three Months Ended March 31, |
|||||
| 2009 | 2008 | ||||
| Revenues: | |||||
| Rental income | $15,030 | $14,634 | |||
| Interest income from mortgage loans | 2,371 | 2,658 | |||
| Interest and other income | 315 | 555 | |||
| Total revenues | 17,716 | 17,847 | |||
| Expenses: | |||||
| Interest expense | 892 | 1,176 | |||
| Depreciation and amortization | 3,701 | 3,692 | |||
| Legal expenses | 7 | 25 | |||
| Operating and other expenses | 1,878 | 1,811 | |||
| Total expenses | 6,478 | 6,704 | |||
| Income from continuing operations | 11,238 | 11,143 | |||
| Discontinued operations: | |||||
| Gain on sale of assets, net | — | 92 | |||
| Net income from discontinued operations | — | 92 | |||
| Net income | 11,238 | 11,235 | |||
| Income allocated to noncontrolling interest | (77 | ) | (77 | ) | |
| Income allocated to preferred stockholders | (3,159 | ) | (2,869 | ) | |
| Income allocated to participating securities | (36 | ) | (49 | ) | |
| Net income allocable to common stockholders | $7,966 | $8,240 | |||
| Basic earnings per common share: | |||||
| Continuing operations | $0.35 | $0.36 | |||
| Discontinued operations | $0.00 | $0.00 | |||
| Net income allocable to common stockholders | $0.35 | $0.36 | |||
| Diluted earnings per common share: | |||||
| Continuing operations | $0.35 | $0.36 | |||
| Discontinued operations | $0.00 | $0.00 | |||
| Net income allocable to common stockholders | $0.35 | $0.36 | |||
| Weighted average shares used to calculate earnings per common share: | |||||
| Basic | 23,059 | 22,862 | |||
| Diluted | 23,141 | 23,015 | |||
NOTE: Computations of per share amounts from continuing operations, discontinued operations and net income are made independently. Therefore, the sum of per share amounts from continuing operations and discontinued operations may not agree with the per share amounts from net income allocable to common stockholders. Quarterly and year-to-date computations of per share amounts are made independently. Therefore, the sum of per share amounts for the quarters may not agree with the per share amounts for the year.
Reconciliation of Funds From Operations (“FFO”)
FFO is a supplemental measure of a REIT’s financial performance that is not defined by accounting principles generally accepted in the United States. We define FFO as net income allocable to common stockholders adjusted to exclude the gains or losses on the sale of assets and adjusted to add back impairment charges, real estate depreciation and other non-cash charges. Other REITs may not use this definition of FFO and therefore, caution should be exercised when comparing our company’s FFO to that of other REITs. FFO is used in the REIT industry as a supplemental measure of financial performance, but is not a substitute for net income per share allocable to common stockholders determined in accordance with accounting principles generally accepted in the United States.
The following table reconciles net income allocable to common stockholders to funds from operations allocable to common stockholders (unaudited, amounts in thousands, except per share amounts):
|
Three Months Ended March 31, |
|||||
| 2009 | 2008 | ||||
| Net income allocable to common stockholders | $7,966 | $8,240 | |||
| Add: Real estate depreciation | 3,701 | 3,692 | |||
| Add: Non-cash compensation charges | 314 | 311 | |||
| Add: Loss/less (gain) on sale of assets, net | — | (92 | ) | ||
| FFO allocable to common stockholders | $11,981 | $12,151 | |||
| Less: Non-cash compensation charges | (314 | ) | (311 | ) | |
| FFO including non-cash compensation charges | $11,667 | $11,840 | |||
| Basic FFO allocable to common stockholders per share | $0.52 | $0.53 | |||
| Diluted FFO allocable to common stockholders per share | $0.51 | $0.52 | |||
| Diluted FFO allocable to common stockholders | $12,896 | $13,084 | |||
| Weighted average shares used to calculate diluted FFO per share allocable to common stockholders | 25,321 | 25,195 | |||
| Basic FFO including non-cash compensation charges per share | $0.51 | $0.52 | |||
| Diluted FFO including non-cash compensation charges per share | $0.50 | $0.51 | |||
| Diluted FFO including non-cash compensation charges | $12,582 | $12,773 | |||
| Weighted average shares used to calculate diluted FFO per share including non-cash compensation charges | 25,321 | 25,195 | |||
|
LTC PROPERTIES, INC. CONSOLIDATED BALANCE SHEETS (Amounts in thousands) (unaudited) |
|||||
| March 31, 2009 | December 31, 2008 | ||||
| ASSETS | |||||
| Real Estate Investments: | |||||
|
Buildings and improvements, net of accumulated depreciation and amortization: 2009 — $134,144; 2008 — $130,475 |
$334,140 | $337,171 | |||
| Land | 34,971 | 34,971 | |||
|
Mortgage loans receivable, net of allowance for doubtful accounts: 2009 — $751; 2008 — $760 |
74,661 | 77,541 | |||
| Real estate investments, net | 443,772 | 449,683 | |||
| Other Assets: | |||||
| Cash and cash equivalents | 21,688 | 21,118 | |||
| Debt issue costs, net | 736 | 831 | |||
| Interest receivable | 1,788 | 2,010 | |||
|
Straight-line rent receivable, net of allowance for doubtful
accounts: 2009 — $300; 2008 — $140 |
14,892 | 13,900 | |||
| Prepaid expenses and other assets | 8,842 | 9,148 | |||
| Notes receivable | 2,814 | 2,895 | |||
| Marketable securities | 6,469 | 6,468 | |||
| Total Assets | $501,001 | $506,053 | |||
| LIABILITIES AND EQUITY | |||||
| Bank borrowings | $ — | $ — | |||
| Mortgage loans payable | 31,866 | 32,063 | |||
| Bonds payable | 4,225 | 4,690 | |||
| Accrued interest | 252 | 251 | |||
| Accrued expenses and other liabilities | 4,279 | 5,015 | |||
| Distributions payable | 2,967 | 3,022 | |||
| Total Liabilities | 43,589 | 45,041 | |||
| Stockholders' equity: | |||||
| Preferred stock $0.01 par value; 15,000 shares authorized; | |||||
| shares issued and outstanding: 2009 — 7,932; 2008 — 8,042 | 186,801 | 189,560 | |||
|
Common stock: $0.01 par value; 45,000 shares authorized; shares issued and outstanding: 2009 — 23,175; 2008 — 23,136 |
232 | 231 | |||
| Capital in excess of par value | 322,426 | 321,979 | |||
| Cumulative net income | 544,726 | 533,565 | |||
| Other | 473 | 735 | |||
| Cumulative distributions | (600,380 | ) | (588,192 | ) | |
| Total Stockholders' Equity | 454,278 | 457,878 | |||
| Noncontrolling interest | 3,134 | 3,134 | |||
| Total Equity | 457,412 | 461,012 | |||
| Total Liabilities and Equity | $501,001 | $506,053 | |||
|
LTC PROPERTIES, INC. SUPPLEMENTAL INFORMATION (Unaudited, dollar amounts in thousands) |
||||||||||||||
|
Non-Cash Revenue Components |
||||||||||||||
| 1Q09 | 2Q09(1) | 3Q09(1) | ||||||||||||