EX-99.1 3 a06-19525_1ex99d1.htm EX-99

Exhibit 99.1

 

Item 6. Selected Financial Data

The following table sets forth selected financial data on a consolidated historical basis for the Company. This information should be read in conjunction with the discussions set forth in Item 7—”Management’s Discussion and Analysis of Financial Condition and Results of Operations.” Certain prior year amounts have been reclassified to conform to the 2005 presentation.

 

 

 

For the Years Ended December 31,

 

 

 

2005

 

2004

 

2003

 

2002

 

2001

 

 

 

(In thousands, except per share data and ratios)

 

OPERATING DATA:

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

$

406,668

 

$

351,972

 

$

302,915

 

$

254,746

 

$

254,119

 

Operating lease income

 

305,120

 

278,262

 

223,721

 

200,792

 

146,598

 

Other income

 

81,440

 

56,063

 

38,153

 

28,878

 

30,921

 

Total revenue

 

793,228

 

686,297

 

564,789

 

484,416

 

431,638

 

Interest expense

 

313,053

 

232,728

 

194,662

 

185,012

 

169,585

 

Operating costs—corporate tenant lease assets

 

22,639

 

21,645

 

10,939

 

6,397

 

4,929

 

Depreciation and amortization

 

71,512

 

62,904

 

49,070

 

41,025

 

29,093

 

General and administrative

 

61,229

 

47,912

 

38,153

 

30,449

 

24,151

 

General and administrative—stock based compensation

 

2,758

 

109,676

 

3,633

 

17,998

 

3,574

 

Provision for loan losses

 

2,250

 

9,000

 

7,500

 

8,250

 

7,000

 

Loss on early extinguishment of debt

 

46,004

 

13,091

 

 

12,166

 

1,620

 

Total costs and expenses

 

519,445

 

496,956

 

303,957

 

301,297

 

239,952

 

Income before equity in earnings from joint ventures, minority interest and other items

 

273,783

 

189,341

 

260,832

 

183,119

 

191,686

 

Equity in earnings (loss) from joint ventures

 

3,016

 

2,909

 

(4,284

)

1,222

 

7,361

 

Minority interest in consolidated entities

 

(980

)

(716

)

(249

)

(162

)

(218

)

Cumulative effect of change in accounting principle(1)

 

 

 

 

 

(282

)

Income from continuing operations

 

275,819

 

191,534

 

256,299

 

184,179

 

198,547

 

Income from discontinued operations

 

5,740

 

25,538

 

30,691

 

30,374

 

30,220

 

Gain from discontinued operations

 

6,354

 

43,375

 

5,167

 

717

 

1,145

 

Net income

 

$

287,913

 

$

260,447

 

$

292,157

 

$

215,270

 

$

229,912

 

Preferred dividend requirements

 

(42,320

)

(51,340

)

(36,908

)

(36,908

)

(36,908

)

Net income allocable to common shareholders and HPU holders(2)

 

$

245,593

 

$

209,107

 

$

255,249

 

$

178,362

 

$

193,004

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per common share(3)

 

$

2.13

 

$

1.87

 

$

2.52

 

$

1.98

 

$

2.24

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings per common share(3)(4)

 

$

2.11

 

$

1.83

 

$

2.43

 

$

1.93

 

$

2.19

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividends declared per common share(5)

 

$

2.93

 

$

2.79

 

$

2.65

 

$

2.52

 

$

2.45

 

 

 

 

 

 

 

 

 

 

 

 

 

SUPPLEMENTAL DATA:

 

 

 

 

 

 

 

 

 

 

 

Adjusted diluted earnings allocable to common shareholders and HPU holders(6)(8)

 

$

391,884

 

$

270,946

 

$

341,777

 

$

262,786

 

$

254,095

 

EBITDA(7)(8)

 

$

677,241

 

$

561,849

 

$

543,235

 

$

448,673

 

$

435,675

 

Ratio of EBITDA to interest expense

 

2.16

x

2.41

x

2.79

x

2.42

x

2.56

x

Ratio of EBITDA to combined fixed charges(9)

 

1.91

x

1.98

x

2.34

x

2.02

x

2.10

x

Ratio of earnings to fixed charges(10)

 

1.89

x

1.84

x

2.35

x

2.01

x

2.14

x

Ratio of earnings to fixed charges and preferred stock dividends(10)

 

1.67

x

1.51

x

1.97

x

1.68

x

1.76

x

Weighted average common shares outstanding basic

 

112,513

 

110,205

 

100,314

 

89,886

 

86,349

 

Weighted average common shares outstanding diluted

 

113,703

 

112,464

 

104,101

 

92,649

 

88,234

 

Cash flows from:

 

 

 

 

 

 

 

 

 

 

 

Operating activities

 

$

515,919

 

$

353,566

 

$

334,673

 

$

344,979

 

$

287,710

 

Investing activities

 

(1,406,121

)

(465,636

)

(970,765

)

(1,149,206

)

(345,012

)

Financing activities

 

917,150

 

120,402

 

700,248

 

804,491

 

50,220

 

 




 

 

 

For the Years Ended December 31,

 

 

 

2005

 

2004

 

2003

 

2002

 

2001

 

 

 

(In thousands, except per share data and ratios)

 

BALANCE SHEET DATA:

 

 

 

 

 

 

 

 

 

 

 

Loans and other lending investments, net

 

$

4,661,915

 

$

3,938,427

 

$

3,694,709

 

$

3,045,966

 

$

2,373,251

 

Corporate tenant lease assets, net

 

3,115,361

 

2,877,042

 

2,535,885

 

2,291,805

 

1,781,565

 

Total assets

 

8,532,296

 

7,220,237

 

6,660,590

 

5,611,697

 

4,380,640

 

Debt obligations

 

5,859,592

 

4,605,674

 

4,113,732

 

3,461,590

 

2,495,369

 

Minority interest in consolidated entities

 

33,511

 

19,246

 

5,106

 

2,581

 

2,650

 

Shareholders’ equity

 

2,446,671

 

2,455,242

 

2,415,228

 

2,025,300

 

1,787,778

 

 

 

 

 

 

 

 

 

 

 

 

 

SUPPLEMENTAL DATA:

 

 

 

 

 

 

 

 

 

 

 

Total debt to shareholders’ equity

 

2.4

x

1.9

x

1.7

x

1.7

x

1.4

x

 

Explanatory Notes:


(1)          Represents one-time effect of adoption of Statement of Financial Accounting Standards No. 133, “Accounting for Derivative Instruments and Hedging Activities” as of January 1, 2001.

(2)          HPU holders are Company employees who purchased high performance common stock units under the Company’s High Performance Unit Program.

(3)          For the 12 months ended December 31, 2005, net income used to calculate earnings per basic and diluted common share excludes $6,043 and $5,983 of net income allocable to HPU holders, respectively. For the 12 months ended December 31, 2004, net income used to calculate earnings per basic and diluted common share excludes $3,314 and $3,265 of net income allocable to HPU holders, respectively. For the 12 months ended December 31, 2003, net income used to calculate earnings per basic and diluted common share excludes $2,066 and $1,994 of net income allocable to HPU holders, respectively.

(4)          For the 12 months ended December 31, 2005, 2004 and 2003, net income used to calculate earnings per diluted common share includes joint venture income of $28, $3 and $167, respectively.

(5)          The Company generally declares common and preferred dividends in the month subsequent to the end of the quarter.

(6)          Adjusted earnings represents net income allocable to common shareholders and HPU holders computed in accordance with GAAP, before depreciation, depletion, amortization, gain (loss) from discontinued operations, extraordinary items and cumulative effect of change in accounting principle. For the year ended December 31, 2004, adjusted earnings includes a $106.9 million charge related to performance-based vesting of 100,000 restricted shares granted under the Company’s long-term incentive plan to the Chief Financial Officer, the vesting of 2.0 million phantom shares on March 30, 2004 to the Chief Executive Officer, the one-time award of Common Stock with a value of $10.0 million to the Chief Executive Officer, the vesting of 155,000 restricted shares granted to several employees and the Company’s share of taxes associated with these transactions. For the year ended December 31, 2002, adjusted earnings includes the $15.0 million charge related to the performance based vesting of restricted shares granted under the Company’s long-term incentive plan. For years ended December 31, 2005, 2004, 2003, 2002 and 2001, adjusted diluted earnings includes approximately $7.5 million, $9.8 million, $0, $4.0 million and $1.0 million, respectively, of cash paid for prepayment penalties associated with early extinguishment of debt. (See Item 7—”Management’s Discussion and Analysis of Financial Condition and Results of Operations” for a reconciliation of adjusted earnings to net income).

(7)          EBITDA is calculated as net income plus the sum of interest expense, depreciation, depletion and amortization (which includes the interest expense, depreciation, depletion and amortization reclassed to income from discontinued operations).

 

For the Years Ended December 31,

 

 

 

2005

 

2004

 

2003

 

2002

 

2001

 

 

 

(In thousands)

 

Net income

 

$

287,913

 

$

260,447

 

$

292,157

 

$

215,270

 

$

229,912

 

Add: Interest expense(1)

 

313,053

 

232,919

 

194,999

 

185,362

 

170,121

 

Add: Depreciation, depletion and amortization(2)

 

76,275

 

68,483

 

56,079

 

48,041

 

35,642

 

EBITDA

 

$

677,241

 

$

561,849

 

$

543,235

 

$

448,673

 

$

435,675

 

 

Explanatory Notes:


(1)            For the years ended December 31, 2005, 2004, 2003, 2002 and 2001, interest expense includes $0, $190, $337, $348 and $536, respectively, of interest expense reclassed to discontinued operations.

(2)            For the years ended December 31, 2005, 2004, 2003, 2002 and 2001, depreciation and amortization includes $1,558, $5,579, $7,009, $7,016 and $6,549, respectively, of depreciation and amortization reclassed to discontinued operations.




 

(8)             Both adjusted earnings and EBITDA should be examined in conjunction with net income as shown in the Consolidated Statements of Operations. Neither adjusted earnings nor EBITDA should be considered as an alternative to net income (determined in accordance with GAAP) as an indicator of the Company’s performance, or to cash flows from operating activities (determined in accordance with GAAP) as a measure of the Company’s liquidity, nor is either measure indicative of funds available to fund the Company’s cash needs or available for distribution to shareholders. Rather, adjusted earnings and EBITDA are additional measures the Company uses to analyze how its business is performing. Its should be noted that the Company’s manner of calculating adjusted earnings and EBITDA may differ from the calculations of similarly-titled measures by other companies.

(9)             Combined fixed charges are comprised of interest expense (including amortization of original issue discount) and preferred stock dividend requirements.

(10)       For the purposes of calculating the ratio of earnings to fixed charges, “earnings” consist of income from continuing operations before adjustment for minority interest in consolidated subsidiaries, or income or loss from equity investees, income taxes and cumulative effect of change in accounting principle plus “fixed charges” and certain other adjustments. “Fixed charges” consist of interest incurred on all indebtedness related to continuing and discontinued operations (including amortization of original issue discount) and the implied interest component of the Company’s rent obligations in the years presented.