-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, HSE+DYV4p88czuHYKuKoIIaAOWH8PDlLTbPfeF0P+/6DwSdo/B933O+Q8sDfetEj 0smhDgPug5W83Oi1t2oHnA== 0001104659-03-008395.txt : 20030507 0001104659-03-008395.hdr.sgml : 20030507 20030507142508 ACCESSION NUMBER: 0001104659-03-008395 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20030507 ITEM INFORMATION: Financial statements and exhibits ITEM INFORMATION: Regulation FD Disclosure FILED AS OF DATE: 20030507 FILER: COMPANY DATA: COMPANY CONFORMED NAME: ROUSE COMPANY CENTRAL INDEX KEY: 0000085388 STANDARD INDUSTRIAL CLASSIFICATION: OPERATORS OF NONRESIDENTIAL BUILDINGS [6512] IRS NUMBER: 520735512 STATE OF INCORPORATION: MD FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-11543 FILM NUMBER: 03685957 BUSINESS ADDRESS: STREET 1: 10275 LITTLE PATUXENT PKWY CITY: COLUMBIA STATE: MD ZIP: 21044-3456 BUSINESS PHONE: 4109926000 MAIL ADDRESS: STREET 1: 10275 LITTLE PATUXENT PARKWAY CITY: COLUMBIA STATE: MD ZIP: 21044 FORMER COMPANY: FORMER CONFORMED NAME: COMMUNITY RESEARCH & DEVELOPMENT INC DATE OF NAME CHANGE: 19660913 8-K 1 j0425_8k.htm 8-K

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

 

FORM 8-K

 

CURRENT REPORT

 

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported)         May  7, 2003

 

(Exact name of registrant as specified in its charter)

 

Maryland

 

0-1743

 

52-0735512

(State or other jurisdiction
of incorporation)

 

(Commission File Number)

 

(IRS Employer Identification No.)

 

10275 Little Patuxent Parkway
Columbia, Maryland

 

21044-3456

(Address of principal executive offices)

 

(Zip Code)

 

 

 

 

Registrant’s telephone number, including area code (410) 992-6000

 

 

 

Not Applicable

(Former name or former address, if changed since last report)

 

 

 

INFORMATION TO BE INCLUDED IN THE REPORT

 

Item 7.  Financial Statements, Pro Forma Financial Information and Exhibits.

 

( c ) Exhibits

 

Exhibit 99.1

 

Five Year Historical Funds From Operations and Net Earnings –

 

 

 

The Rouse Company released May 7, 2003

 

 

Item 9.  Regulation FD Disclosure.

 

Furnished with this Form 8-K and attached as Exhibit 99.1 is Five Year Historical Funds From Operations and Net Earnings data released by the registrant on May 7, 2003, presenting Funds From Operations in conformity with the definition adopted by the National Association of Real Estate Investment Trusts.  This information is also being furnished pursuant to Item 12 – Results of Operations and Financial Condition, of Form 8-K.  This information is not deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934 and is not incorporated by reference into any Securities Act registration statements.

 

Item 12.  Results of Operations and Financial Condition.

 

See Item 9 of this Current Report on Form 8-K.

 

SIGNATURE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

Date:  May 7, 2003

THE ROUSE COMPANY

 

 

 

 

By:

/s/

Melanie M. Lundquist

 

 

Melanie M. Lundquist

 

 

Senior Vice President and

 

 

Corporate Controller

 

2

 

Exhibit Index:

 

 

 

99.1

Five Year Historical Funds From Operations and Net Earnings – The Rouse Company released May 7, 2003

 

3

 EX-99.1 3 j0425_ex99d1.htm EX-99.1

Exhibit 99.1

 

 

The Rouse Company

Five Year Historical Funds From Operations and Net Earnings

 

The Company uses Funds From Operations, in addition to net earnings, to report its operating results.  Historical cost accounting for real estate assets implicitly assumes that the value of real estate assets diminishes over time as reflected through depreciation and amortization expenses.  The Company believes that the value of real estate assets does not diminish predictably over time, as historical cost accounting implies, and instead fluctuates due to market and other conditions.  Accordingly, the Company believes FFO provides investors with useful information about our operating performance because it excludes depreciation and amortization expenses.  In addition, FFO was created and is used by the real estate industry as a standard.  The Company uses the definition of FFO adopted by the National Association of Real Estate Investment Trusts (NAREIT).  Accordingly, FFO is defined as net earnings (computed in accordance with accounting principles generally accepted in the United States of America), excluding gains (losses) on depreciated operating properties and depreciation and amortization expenses.  FFO is not a liquidity measure and should not be considered as an alternative to cash flows or as an indicator of cash available for distributions.  It also should not be considered an alternative to net earnings, as determined in accordance with GAAP, as an indication of the Company’s financial performance.  Prior to January 1, 2003, the Company used Funds From Operations from Recurring Activities as a supplemental performance measure.  The Company is presenting this measure solely to assist investors in understanding the differences between FFO and the supplemental performance measure reported in prior periods.

 

The following tables present for the periods shown a reconciliation of Net Earnings to Funds From Operations (as defined by NAREIT) and Funds From Operations from Recurring Activities (as presented by the Company prior to January 1, 2003).

 

 

 

The Rouse Company

Reconciliation of Net Earnings to Funds From Operations

(in thousands, except per share data)

 

 

 

Years ended December 31,

 

 

 

2002

 

2001

 

2000

 

1999

 

1998

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Results Data

 

 

 

 

 

 

 

 

 

 

 

Net earnings

 

$

139,851

 

$

110,706

 

$

170,485

 

$

135,297

 

$

104,902

 

Cumulative effect of change in accounting principle

 

—

 

411

 

—

 

—

 

4,629

 

Net losses (gains) on operating properties

 

(37,024

)

432

 

(33,150

)

(44,029

)

(7,792

)

Depreciation and amortization

 

182,167

 

145,356

 

122,965

 

127,763

 

99,554

 

Funds From Operations

 

284,994

 

256,905

 

260,300

 

219,031

 

201,293

 

Other provisions and losses, net:

 

 

 

 

 

 

 

 

 

 

 

Provision for organizational changes, including early retirement and related costs

 

21,816

 

—

 

—

 

11,338

 

—

 

Net losses (gains) on early extinguishment of debt

 

8,208

 

696

 

(2,200

)

5,879

 

(3,626

)

Impairment loss of MerchantWired

 

11,623

 

—

 

—

 

—

 

—

 

Gain on foreign exchange derivative

 

(1,134

)

—

 

—

 

—

 

—

 

Net other

 

2,993

 

748

 

—

 

—

 

—

 

Deferred income taxes

 

28,755

 

25,402

 

2,623

 

6,487

 

9,003

 

Funds From Operations from Recurring Activities

 

$

357,255

 

$

283,751

 

$

260,723

 

$

242,735

 

$

206,670

 

 

 

 

 

 

 

 

 

 

 

 

 

Per Share Data

 

 

 

 

 

 

 

 

 

 

 

Diluted per share information

 

 

 

 

 

 

 

 

 

 

 

Net earnings

 

$

1.47

 

$

1.40

 

$

2.24

 

$

1.69

 

$

1.34

 

Funds From Operations

 

$

3.08

 

$

3.39

 

$

3.40

 

$

2.76

 

$

2.64

 

 

 

 

 

 

 

 

 

 

 

 

 

Data for computation of:

 

 

 

 

 

 

 

 

 

 

 

Net Earnings Per Share (Diluted)

 

 

 

 

 

 

 

 

 

 

 

Net earnings

 

$

139,851

 

$

110,706

 

$

170,485

 

$

135,297

 

$

104,902

 

Dividends on unvested common stock awards and other

 

(860

)

(502

)

(321

)

(909

)

(427

)

Interest on convertible subordinated debentures

 

—

 

—

 

—

 

3,222

 

—

 

Dividends on convertible Preferred stock

 

(12,150

)

(12,150

)

(12,150

)

(12,150

)

(12,150

)

Interest on convertible property debt

 

—

 

—

 

3,076

 

2,820

 

—

 

Adjusted net earnings

 

$

126,841

 

$

98,054

 

$

161,090

 

$

128,280

 

$

92,325

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted-average shares outstanding

 

84,954

 

68,637

 

69,475

 

71,705

 

67,874

 

Dilutive securities:

 

 

 

 

 

 

 

 

 

 

 

Options, unvested common stock awards and other

 

1,492

 

1,057

 

659

 

563

 

985

 

Convertible subordinated debentures

 

—

 

—

 

—

 

1,931

 

—

 

Convertible property debt

 

—

 

—

 

1,930

 

1,588

 

—

 

Adjusted weighted-average shares used in computation

 

86,446

 

69,694

 

72,064

 

75,787

 

68,859

 

 

 

 

 

 

 

 

 

 

 

 

 

Funds From Operations Per Share (Diluted)

 

 

 

 

 

 

 

 

 

 

 

Funds From Operations

 

$

284,994

 

$

256,905

 

$

260,300

 

$

219,031

 

$

201,293

 

Dividends on unvested common stock awards and other

 

(293

)

(196

)

(321

)

(909

)

(427

)

Interest on convertible subordinated debentures

 

—

 

—

 

—

 

3,222

 

7,328

 

Interest on convertible property debt

 

1,012

 

3,076

 

3,076

 

2,820

 

—

 

Adjusted Funds From Operations

 

$

285,713

 

$

259,785

 

$

263,055

 

$

224,164

 

$

208,194

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted-average shares outstanding

 

84,954

 

68,637

 

69,475

 

71,705

 

67,874

 

Dilutive securities:

 

 

 

 

 

 

 

 

 

 

 

Options, unvested common stock awards and other

 

1,793

 

1,144

 

659

 

563

 

1,064

 

Convertible subordinated debentures

 

—

 

—

 

—

 

1,931

 

4,500

 

Convertible Preferred stock

 

5,310

 

5,310

 

5,310

 

5,310

 

5,310

 

Convertible property debt

 

700

 

1,608

 

1,930

 

1,588

 

—

 

Adjusted weighted-average shares used in computation

 

92,757

 

76,699

 

77,374

 

81,097

 

78,748

 

 

2

 

Reconciliation of Net Earnings to Funds From Operations

(in thousands, except per share data)

 

 

 

2002 quarter ended

 

 

 

December 31

 

September 30

 

June 30

 

March 31

 

 

 

 

 

 

 

 

 

 

 

Operating Results Data

 

 

 

 

 

 

 

 

 

Net earnings

 

$

(5,300

)

$

32,299

 

$

98,149

 

$

14,703

 

Net losses (gains) on operating properties

 

39,619

 

(161

)

(75,368

)

(1,114

)

Depreciation and amortization

 

58,734

 

44,229

 

42,255

 

36,949

 

Funds From Operations

 

93,053

 

76,367

 

65,036

 

50,538

 

Other provisions and losses, net:

 

 

 

 

 

 

 

 

 

Provision for organizational changes, including early retirement and related costs

 

13,199

 

8,617

 

—

 

—

 

Net losses on early extinguishment of debt

 

2,289

 

—

 

588

 

5,331

 

Impairment loss of MerchantWired

 

—

 

—

 

10,169

 

1,454

 

Loss (gain) on foreign exchange derivative

 

—

 

—

 

(9,296

)

8,162

 

Net other

 

593

 

2,400

 

—

 

—

 

Deferred income taxes

 

6,710

 

9,419

 

7,168

 

5,458

 

Funds From Operations from Recurring Activities

 

$

115,844

 

$

96,803

 

$

73,665

 

$

70,943

 

 

 

 

 

 

 

 

 

 

 

Per Share Data

 

 

 

 

 

 

 

 

 

Diluted per share information

 

 

 

 

 

 

 

 

 

Net earnings

 

$

(.10

)

$

.33

 

$

1.04

 

$

.14

 

Funds From Operations

 

$

1.00

 

$

.82

 

$

.69

 

$

.57

 

 

 

 

 

 

 

 

 

 

 

Data for computation of:

 

 

 

 

 

 

 

 

 

Net Earnings Per Share (Diluted)

 

 

 

 

 

 

 

 

 

Net earnings

 

$

(5,300

)

$

32,299

 

$

98,149

 

$

14,703

 

Dividends on unvested common stock awards and other

 

(197

)

(254

)

(134

)

(231

)

Dividends on convertible Preferred stock

 

(3,036

)

(3,038

)

—

 

(3,038

)

Interest on convertible property debt

 

—

 

—

 

456

 

—

 

Adjusted net earnings

 

$

(8,533

)

$

29,007

 

$

98,471

 

$

11,434

 

 

 

 

 

 

 

 

 

 

 

Weighted-average shares outstanding

 

86,287

 

86,222

 

85,906

 

81,329

 

Dilutive securities:

 

 

 

 

 

 

 

 

 

Options, unvested common stock awards and other

 

—

 

1,643

 

2,123

 

1,258

 

Convertible Preferred stock

 

—

 

—

 

5,310

 

—

 

Convertible property debt

 

—

 

—

 

1,324

 

—

 

Adjusted weighted-average shares used in computation

 

86,287

 

87,865

 

94,663

 

82,587

 

 

 

 

 

 

 

 

 

 

 

Funds From Operations Per Share (Diluted)

 

 

 

 

 

 

 

 

 

Funds From Operations

 

$

93,053

 

$

76,367

 

$

65,036

 

$

50,538

 

Dividends on unvested common stock awards and other

 

(97

)

(151

)

(134

)

(159

)

Dividends on convertible Preferred stock

 

—

 

—

 

—

 

(3,038

)

Interest on convertible property debt

 

—

 

—

 

456

 

555

 

Adjusted Funds From Operations

 

$

92,956

 

$

76,216

 

$

65,358

 

$

47,896

 

 

 

 

 

 

 

 

 

 

 

Weighted-average shares outstanding

 

86,287

 

86,222

 

85,906

 

81,329

 

Dilutive securities:

 

 

 

 

 

 

 

 

 

Options, unvested common stock awards and other

 

1,558

 

1,908

 

2,123

 

1,442

 

Convertible Preferred stock

 

5,310

 

5,310

 

5,310

 

—

 

Convertible property debt

 

—

 

—

 

1,324

 

1,400

 

Adjusted weighted-average shares used in computation

 

93,155

 

93,440

 

94,663

 

84,171

 

 

3

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