EX-99.1 2 a11-28749_1ex99d1.htm EX-99.1

Exhibit 99.1

 

 

FOR IMMEDIATE RELEASE

 

Contact: Wendy L. Simpson, CEO & President

Pam Kessler, EVP & CFO

(805) 981-8655

 

 

LTC ANNOUNCES THIRD QUARTER OPERATING RESULTS

 

WESTLAKE VILLAGE, CALIFORNIA, November 2, 2011 — LTC Properties, Inc. (NYSE: LTC) released results of operations for the three and nine months ended September 30, 2011 and announced that net income available to common stockholders for the third quarter was $11.5 million or $0.38 per diluted share.  For the same period in 2010, net income available to common stockholders was $5.6 million or $0.22 per diluted share. The Company reported total revenues for the three months ended September 30, 2011, were $21.4 million versus $18.4 million for the same period last year.

 

For the nine months ended September 30, 2011, net income available to common stockholders was $28.2 million or $0.97 per diluted share which included a $3.6 million charge related to the Company’s redemption of all remaining shares of its 8.0% Series F Cumulative Preferred Stock (“Series F preferred stock”).  For the same period in 2010, net income available to common stockholders was $20.0 million or $0.83 per diluted share which included a $2.4 million charge related to the Company’s redemption of all of its Series E Preferred Stock and 40% of its Series F Preferred Stock and $0.9 million provision for doubtful accounts related to a mortgage loan secured by a school property.   Revenues for the nine months ended September 30, 2011, were $62.9 million versus $53.9 million for the same period last year.

 

The Company will conduct a conference call on Thursday, November 3, 2011, at 10:00 a.m. Pacific Time, in order to comment on the Company’s performance and operating results for the quarter ended September 30, 2011.  The conference call is accessible by dialing 877-317-6789.  The international number is 412-317-6789.  An audio replay of the conference call will be available from November 3, 2011 through November 25, 2011.  Callers can access the replay by dialing 877-344-7529 or 412-317-0088 and entering conference number 10005732.  The earnings release will be available on our website.  The Company’s supplemental information package for the current period will also be available on the Company’s website at www.LTCProperties.com in the “Presentations” section of the “Investor Information” tab.

 

At September 30, 2011, LTC had investments in 89 skilled nursing properties, 102 assisted living properties, 14 other senior housing properties and two schools.  These properties are located in 30 states.  Other senior housing properties consist of independent living properties and properties providing any combination of skilled nursing, assisted living and/or independent living services.  The Company is a self-administered real estate investment trust that primarily invests in senior housing and long-term care 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.

 

1


 

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.  Please see our most recent Annual Report on Form 10-K, our subsequent Quarterly Reports on Form 10-Q, and in our other publicly available filings with the Securities and Exchange Commission for a discussion of these and other 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.

 

2


 

LTC PROPERTIES, INC.

CONSOLIDATED STATEMENTS OF INCOME

(Amounts in thousands, except per share amounts)

(Unaudited)

 

 

 

Three Months Ended
September 30,

 

Nine Months Ended
September 30,

 

 

 

2011

 

2010

 

2011

 

2010

 

Revenues:

 

 

 

 

 

 

 

 

 

Rental income

 

$

19,620

 

$

16,227

 

$

57,139

 

$

47,355

 

Interest income from mortgage loans

 

1,582

 

1,868

 

4,851

 

5,683

 

Interest and other income

 

227

 

264

 

872

 

838

 

Total revenues

 

21,429

 

18,359

 

62,862

 

53,876

 

 

 

 

 

 

 

 

 

 

 

Expenses:

 

 

 

 

 

 

 

 

 

Interest expense

 

1,794

 

852

 

4,441

 

1,672

 

Depreciation and amortization

 

4,974

 

4,010

 

14,374

 

11,618

 

(Recovery) provisions for doubtful accounts

 

(1

)

60

 

(15

)

1,029

 

Acquisition costs

 

60

 

4

 

225

 

117

 

Operating and other expenses

 

2,149

 

1,896

 

6,800

 

5,615

 

Total expenses

 

8,976

 

6,822

 

25,825

 

20,051

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations

 

12,453

 

11,537

 

37,037

 

33,825

 

 

 

 

 

 

 

 

 

 

 

Discontinued operations:

 

 

 

 

 

 

 

 

 

(Loss) income from discontinued operations

 

(30

)

25

 

(198

)

(63

)

Net (loss) income from discontinued operations

 

(30

)

25

 

(198

)

(63

)

Net income

 

12,423

 

11,562

 

36,839

 

33,762

 

Income allocated to non-controlling interests

 

(48

)

(48

)

(144

)

(144

)

Net income attributable to LTC Properties, Inc.

 

12,375

 

11,514

 

36,695

 

33,618

 

 

 

 

 

 

 

 

 

 

 

Income allocated to participating securities

 

(85

)

(54

)

(259

)

(155

)

Income allocated to preferred stockholders

 

(818

)

(5,889

)

(8,260

)

(13,459

)

Net income available to common stockholders

 

$

11,472

 

$

5,571

 

$

28,176

 

$

20,004

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per common share:

 

 

 

 

 

 

 

 

 

Continuing operations

 

$

0.38

 

$

0.22

 

$

0.98

 

$

0.84

 

Discontinued operations

 

$

(0.00

)

$

0.00

 

$

(0.01

)

$

(0.00

)

Net income available to common stockholders

 

$

0.38

 

$

0.22

 

$

0.98

 

$

0.83

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings per common share:

 

 

 

 

 

 

 

 

 

Continuing operations

 

$

0.38

 

$

0.22

 

$

0.98

 

$

0.84

 

Discontinued operations

 

$

(0.00

)

$

0.00

 

$

(0.01

)

$

(0.00

)

Net income available to common stockholders

 

$

0.38

 

$

0.22

 

$

0.97

 

$

0.83

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares used to calculate earnings per common share:

 

 

 

 

 

 

 

 

 

Basic

 

30,137

 

24,930

 

28,874

 

23,959

 

Diluted

 

30,156

 

24,945

 

28,902

 

24,055

 

 

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.

 

3


 

Reconciliation of Funds From Operations (“FFO”)

 

FFO is a supplemental measure of a real estate investment trust’s (“REIT”) financial performance that is not defined by U.S. generally accepted accounting principles (“GAAP”).  The Company uses FFO as a supplemental measure of our operating performance and we believe FFO is helpful in evaluating the operating performance of a REIT.  Real estate values historically rise and fall with market conditions, but cost accounting for real estate assets in accordance with U.S. GAAP assumes that the value of real estate assets diminishes predictably over time.  We believe that by excluding the effect of historical cost depreciation, which may be of limited relevance in evaluating current performance, FFO and modified FFO facilitate comparisons of operating performance between periods.

 

FFO is defined as net income available to common stockholders (computed in accordance with U.S. GAAP) excluding gains or losses on the sale of assets plus real estate depreciation and amortization, with adjustments for unconsolidated partnerships and joint ventures.  Adjustments for unconsolidated partnerships and joint ventures will be calculated to reflect FFO on the same basis.  Modified FFO represents FFO adjusted for certain items detailed in the reconciliations. The Company’s computation of FFO may not be comparable to FFO reported by other REITs that do not define the term in accordance with the current National Association of Real Estate Investment Trusts’ (“NAREIT”) definition or that have a different interpretation of the current NAREIT definition from the Company; therefore, caution should be exercised when comparing our company’s FFO to that of other REITs.

 

The Company uses FFO, modified FFO, modified FFO excluding non-cash rental income and modified FFO excluding non-cash rental income and non-cash compensation charges as supplemental performance measures of our cash flow generated by operations and cash available for distribution to stockholders.  FFO, modified FFO, modified FFO excluding non-cash rental income and modified FFO excluding non-cash rental income and non-cash compensation charges do not represent cash generated from operating activities in accordance with U.S. GAAP, and are not necessarily indicative of cash available to fund cash needs and should not be considered an alternative to net income available to common stockholders.

 

4


 

The following table reconciles net income available to common stockholders to FFO available to common stockholders, modified FFO available to common stockholders, modified FFO available to common stockholders excluding non-cash rental income and modified FFO available to common stockholders excluding non-cash rental income and non-cash compensation charges (unaudited, amounts in thousands, except per share amounts):

 

 

 

Three Months Ended
September 30,

 

Nine Months Ended
September 30,

 

 

 

2011

 

2010

 

2011

 

2010

 

Net income available to common stockholders

 

$

11,472

 

$

5,571

 

$

28,176

 

$

20,004

 

Add: Depreciation and amortization (continuing and discontinued operations)

 

4,974

 

4,073

 

14,482

 

11,947

 

FFO available to common stockholders

 

16,446

 

9,644

 

42,658

 

31,951

 

Add: Preferred stock redemption charge

 

—

 

2,383

 

3,566

(1)

2,383

(3)

Add: Preferred stock redemption dividend

 

—

 

—

 

472

(2)

—

 

Add: Non-cash interest related to earn-out liabilities

 

177

 

—

 

354

 

—

 

Add: Non-recurring one-time items

 

—

 

—

 

—

 

852

(4)

Modified FFO available to common stockholders

 

16,623

 

12,027

 

47,050

 

35,186

 

Less: Non-cash rental income

 

(912

)

(788

)

(2,268

)

(2,315

)

Modified FFO excluding non-cash rental income

 

15,711

 

11,239

 

44,782

 

32,871

 

Add: Non-cash compensation charges

 

374

 

261

 

1,095

 

982

 

Modified FFO excluding non-cash rental income and non-cash compensation charges

 

$

16,085

 

$

11,500

 

$

45,877

 

$

33,853

 

 

(1)               Represents the original issue costs related to the redemption of the remaining Series F preferred stock.

(2)               Represents the dividends on the Series F preferred stock up to the redemption date.

(3)               Represents the original issue costs related to the redemption of all of the Series E and 40% of the Series F preferred stock.

(4)               Includes a $0.9 million provision for doubtful accounts charge related to a mortgage loan secured by a school property located in Minnesota.

 

Basic FFO available to common stockholders per share

 

$

0.55

 

$

0.39

 

$

1.48

 

$

1.33

 

Diluted FFO available to common stockholders per share

 

$

0.54

 

$

0.39

 

$

1.46

 

$

1.32

 

 

 

 

 

 

 

 

 

 

 

Diluted FFO

 

$

17,397

 

$

9,698

 

$

45,515

 

$

34,744

 

Weighted average shares used to calculate diluted FFO per share available to common stockholders

 

32,473

 

25,090

 

31,221

 

26,304

 

 

 

 

 

 

 

 

 

 

 

Basic modified FFO available to common stockholders per share

 

$

0.55

 

$

0.48

 

$

1.63

 

$

1.47

 

Diluted modified FFO available to common stockholders per share

 

$

0.54

 

$

0.48

 

$

1.60

 

$

1.44

 

 

 

 

 

 

 

 

 

 

 

Diluted modified FFO

 

$

17,574

 

$

12,947

 

$

49,907

 

$

37,979

 

Weighted average shares used to calculate diluted modified FFO per share available to common stockholders

 

32,473

 

27,203

 

31,221

 

26,304

 

 

 

 

 

 

 

 

 

 

 

Basic modified FFO excluding non-cash rental income per share

 

$

0.52

 

$

0.45

 

$

1.55

 

$

1.37

 

Diluted modified FFO excluding non-cash rental income per share

 

$

0.51

 

$

0.45

 

$

1.53

 

$

1.36

 

 

 

 

 

 

 

 

 

 

 

Diluted modified FFO excluding non-cash rental income

 

$

16,662

 

$

12,159

 

$

47,639

 

$

35,664

 

Weighted average shares used to calculate diluted modified FFO excluding non-cash rental income per share available to common stockholders

 

32,473

 

27,203

 

31,221

 

26,304

 

 

 

 

 

 

 

 

 

 

 

Basic modified FFO excluding non-cash rental income and non-cash compensation charges per share

 

$

0.53

 

$

0.46

 

$

1.59

 

$

1.41

 

Diluted modified FFO excluding non-cash rental income and non-cash compensation charges per share

 

$

0.52

 

$

0.46

 

$

1.56

 

$

1.39

 

 

 

 

 

 

 

 

 

 

 

Diluted modified FFO excluding non-cash rental income and non-cash compensation charges

 

$

17,036

 

$

12,420

 

$

48,734

 

$

36,646

 

Weighted average shares used to calculate diluted modified FFO excluding non-cash rental income and non-cash compensation charges per share available to common stockholders

 

32,473

 

27,204

 

31,221

 

26,304

 

 

5


 

LTC PROPERTIES, INC.

CONSOLIDATED BALANCE SHEETS

(Amounts in thousands)

 

 

 

September 30, 2011

 

December 31, 2010

 

 

 

(unaudited)

 

(audited)

 

ASSETS

 

 

 

 

 

Real estate investments:

 

 

 

 

 

Land

 

$

50,409

 

$

43,031

 

Buildings and improvements

 

634,418

 

567,017

 

Accumulated depreciation and amortization

 

(172,480

)

(158,204

)

Net operating real estate property

 

512,347

 

451,844

 

Properties held-for-sale, net of accumulated depreciation and amortization: 2011 — $613; 2010 — $505

 

5,018

 

5,113

 

Net real estate property

 

517,365

 

456,957

 

Mortgage loans receivable, net of allowance for doubtful accounts: 2011 — $931; 2010 — $981

 

54,056

 

59,026

 

Real estate investments, net

 

571,421

 

515,983

 

Other assets:

 

 

 

 

 

Cash and cash equivalents

 

5,214

 

6,903

 

Debt issue costs, net

 

2,377

 

743

 

Interest receivable

 

1,339

 

1,571

 

Straight-line rent receivable, net of allowance for doubtful accounts: 2011 — $668; 2010 — $634

 

22,822

 

20,090

 

Prepaid expenses and other assets

 

8,541

 

8,162

 

Other assets related to properties held-for-sale, net of allowance for doubtful accounts: 2011 — $839; 2010 — $839

 

51

 

51

 

Notes receivable

 

768

 

1,283

 

Marketable securities

 

6,483

 

6,478

 

Total assets

 

$

619,016

 

$

561,264

 

 

 

 

 

 

 

LIABILITIES

 

 

 

 

 

Bank borrowings

 

$

28,400

 

$

37,700

 

Senior unsecured notes

 

100,000

 

50,000

 

Bonds payable

 

3,200

 

3,730

 

Accrued interest

 

1,014

 

675

 

Earn-out liabilities

 

6,195

 

—

 

Accrued expenses and other liabilities

 

10,872

 

9,737

 

Accrued expenses and other liabilities related to properties held-for-sale

 

93

 

132

 

Distributions payable

 

—

 

1,768

 

Total Liabilities

 

149,774

 

103,742

 

 

 

 

 

 

 

EQUITY

 

 

 

 

 

Stockholders’ equity:

 

 

 

 

 

Preferred stock $0.01 par value; 15,000 shares authorized; shares issued and outstanding: 2011 — 2,000; 2010 — 5,536

 

38,500

 

126,913

 

Common stock: $0.01 par value; 45,000 shares authorized; shares issued and outstanding: 2011 — 30,341; 2010 — 26,345

 

303

 

263

 

Capital in excess of par value

 

506,851

 

398,599

 

Cumulative net income

 

660,186

 

623,491

 

Other

 

219

 

264

 

Cumulative distributions

 

(738,779

)

(693,970

)

Total LTC Properties, Inc. stockholders’ equity

 

467,280

 

455,560

 

 

 

 

 

 

 

Non-controlling interests

 

1,962

 

1,962

 

Total equity

 

469,242

 

457,522

 

Total liabilities and equity

 

$

619,016

 

$

561,264

 

 

6