EX-99.1 2 a13-11079_1ex99d1.htm EX-99.1

Exhibit 99.1

 

FOR IMMEDIATE RELEASE

 

For more information contact:
Wendy L. Simpson
Pam Kessler
(805) 981-8655

 

LTC REPORTS FIRST QUARTER 2013 RESULTS

 

WESTLAKE VILLAGE, CALIFORNIA, April 30, 2013 — LTC Properties, Inc. (NYSE: LTC) (“LTC” or the “Company”) announced operating results for the quarter ended March 31, 2013.  The Company reported a 10.1% increase in normalized Funds from Operations (“FFO”) to $19.0 million for the quarter ended March 31, 2013, from $17.3 million for the comparable 2012 period.  Normalized FFO per diluted common share was $0.61 for the quarter ended March 31, 2013, an increase of 8.9% from $0.56 for the comparable 2012 period.  Normalized FFO for the quarter ended March 31, 2013, excludes $0.7 million of one-time severance and accelerated restricted stock vesting charges related to the retirement of our Senior Vice President, Marketing and Strategic Planning and $0.1 million of non-cash interest related to earn-out liabilities.  The increase in normalized FFO and normalized FFO per diluted common share was due to higher revenues from acquisitions partially offset by an increase in interest expense and higher weighted average shares outstanding.

 

FFO was $18.2 million for the first quarter of 2013 compared to $17.2 million for the first quarter of 2012.  FFO per diluted common share was $0.59 for the first quarter of 2013 compared to $0.56 for the first quarter of 2012.   The increase in FFO and FFO per diluted common share was due to higher revenues from acquisitions partially offset by an increase in interest expense, general and administrative expenses and higher weighted average shares outstanding.

 

Net income available to common stockholders for the quarter ended March 31, 2013 was $12.1 million or $0.40 per diluted share. For the same period in 2012, net income available to common stockholders was $12.0 million or $0.40 per diluted share. The increase in net income available to common stockholders was due primarily to higher revenues from acquisitions partially offset by an increase in interest expense, higher depreciation and amortization expense, the one-time charges related to our Senior Vice President’s retirement and higher weighted average shares outstanding.

 

Conference Call Information

 

The Company will conduct a conference call on Wednesday, May 1, 2013, at 7:00 a.m. Pacific Time, in order to comment on the Company’s performance and operating results for the quarter ended March 31, 2013.  The conference call is accessible by dialing 888-317-6016.  The international number is 412-317-6016.  An audio replay of the conference call will be available from May 1 through May 17, 2013.  Callers can access the replay by dialing 877-344-7529 or 412-317-0088 and entering conference number 10027691.  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.

 

1


 

About LTC

 

At March 31, 2013, LTC had investments in 90 skilled nursing properties, 104 assisted living properties, 9 range of care properties, two schools and five parcels of land under development.  These properties are located in 29 states.  Assisted living properties, independent living properties, memory care properties and combinations thereof are included in the assisted living property type. Range of care properties consist of properties providing skilled nursing and any combination of assisted living, independent living and/or memory care services.  The Company is a self-administered real estate investment trust that primarily invests in senior housing and long-term care facilities through facility lease transactions, mortgage loans and other investments. For more information on LTC Properties, Inc., visit the Company’s website at www.LTCProperties.com.

 

Forward Looking Statements

 

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
March 31,

 

 

 

2013

 

2012

 

Revenues:

 

 

 

 

 

Rental income

 

$

24,511

 

$

20,872

 

Interest income from mortgage loans

 

1,059

 

1,532

 

Interest and other income

 

93

 

236

 

Total revenues

 

25,663

 

22,640

 

 

 

 

 

 

 

Expenses:

 

 

 

 

 

Interest expense

 

3,133

 

2,033

 

Depreciation and amortization

 

6,136

 

5,167

 

General and administrative expenses

 

3,418

 

2,524

 

Total expenses

 

12,687

 

9,724

 

 

 

 

 

 

 

Income from continuing operations

 

12,976

 

12,916

 

 

 

 

 

 

 

Discontinued operations:

 

 

 

 

 

Gain on sale of assets, net

 

—

 

16

 

Net income from discontinued operations

 

—

 

16

 

Net income

 

12,976

 

12,932

 

Income allocated to non-controlling interests

 

—

 

(11

)

Net income attributable to LTC Properties, Inc.

 

12,976

 

12,921

 

 

 

 

 

 

 

Income allocated to participating securities

 

(98

)

(94

)

Income allocated to preferred stockholders

 

(818

)

(818

)

Net income available to common stockholders

 

$

12,060

 

$

12,009

 

 

 

 

 

 

 

Basic earnings per common share:

 

 

 

 

 

Continuing operations

 

$

0.40

 

$

0.40

 

Discontinued operations

 

$

0.00

 

$

0.00

 

Net income available to common stockholders

 

$

0.40

 

$

0.40

 

 

 

 

 

 

 

Diluted earnings per common share:

 

 

 

 

 

Continuing operations

 

$

0.40

 

$

0.40

 

Discontinued operations

 

$

0.00

 

$

0.00

 

Net income available to common stockholders

 

$

0.40

 

$

0.40

 

 

 

 

 

 

 

Weighted average shares used to calculate earnings per common share:

 

 

 

 

 

Basic

 

30,365

 

30,189

 

Diluted

 

30,399

 

30,234

 

 

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.

 

3


 

Supplemental Reporting Measures

 

FFO, adjusted FFO (“AFFO”), and Funds Available for Distribution (“FAD”) are supplemental measures of a real estate investment trust’s (“REIT”) financial performance that are not defined by U.S. generally accepted accounting principles (“GAAP”).  Investors, analysts and the Company use FFO, AFFO and FAD as supplemental measures of operating performance and we believe they are 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, AFFO and FAD facilitate comparisons of operating performance between periods.  Additionally the Company believes that normalized FFO, normalized AFFO and normalized FAD provide useful information because they allow investors, analysts and our management to compare the Company’s operating performance on a consistent basis without having to account for differences caused by unanticipated items.

 

FFO, as defined by the National Association of Real Estate Investment Trusts (“NAREIT”), means net income available to common stockholders (computed in accordance with U.S. GAAP) excluding gains or losses on the sale of real estate and impairment write-downs of depreciable real estate plus real estate depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures.  Normalized 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 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.

 

We define AFFO as FFO excluding the effects of straight-line rent and amortization of lease inducement.  U.S. GAAP requires rental revenues related to non-contingent leases that contain specified rental increases over the life of the lease to be recognized evenly over the life of the lease.  This method results in rental income in the early years of a lease that is higher than actual cash received, creating a straight-line rent receivable asset included in our consolidated balance sheet.  At some point during the lease, depending on its terms, cash rent payments exceed the straight-line rent which results in the straight-line rent receivable asset decreasing to zero over the remainder of the lease term.  By excluding the non-cash portion of straight-line rental revenue and amortization of lease inducement, investors, analysts and our management can compare AFFO between periods.  Normalized AFFO represents AFFO adjusted for certain items detailed in the reconciliations.

 

We define FAD as AFFO excluding the effects of non-cash compensation charges.  FAD is useful in analyzing the portion of cash flow that is available for distribution to stockholders.  Investors, analysts and the Company utilize FAD as an indicator of common dividend potential.   The FAD payout ratio, which represents annual distributions to common shareholders expressed as a percentage of FAD, facilitates the comparison of dividend coverage between REITs.  Normalized FAD represents FAD adjusted for certain items detailed in the reconciliations.

 

The Company uses FFO, normalized FFO, normalized AFFO and normalized FAD as supplemental performance measures of our cash flow generated by operations and cash available for distribution to stockholders.  FFO, normalized FFO, normalized AFFO and normalized FAD 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


 

Reconciliation of FFO, Normalized FFO, Normalized AFFO and Normalized FAD

 

The following table reconciles net income available to common stockholders to FFO available to common stockholders, normalized FFO available to common stockholders, normalized AFFO and normalized FAD (unaudited, amounts in thousands, except per share amounts):

 

 

 

Three Months Ended
March 31,

 

 

 

2013

 

2012

 

Net income available to common stockholders

 

$

12,060

 

$

12,009

 

Add: Depreciation and amortization

 

6,136

 

5,167

 

Less: Gain on sale of real estate, net

 

—

 

(16

)

FFO available to common stockholders

 

18,196

 

17,160

 

 

 

 

 

 

 

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

 

110

 

110

 

Add: Non-recurring one-time items

 

707

(1)

—

 

Normalized FFO available to common stockholders

 

19,013

 

17,270

 

 

 

 

 

 

 

Less: Non-cash rental income

 

(772

)

(482

)

Normalized adjusted FFO (AFFO)

 

18,241

 

16,788

 

 

 

 

 

 

 

Add: Non-cash compensation charges

 

528

 

452

 

Normalized funds available for distribution (FAD)

 

$

18,769

 

$

17,240

 

 

(1)   Represents the one-time severance and accelerated restricted stock vesting charges related to the retirement of our Senior Vice President, Marketing and Strategic Planning.

 

Basic FFO available to common stockholders per share

 

$

0.60

 

$

0.57

 

Diluted FFO available to common stockholders per share

 

$

0.59

 

$

0.56

 

 

 

 

 

 

 

Diluted FFO available to common stockholders

 

$

19,112

 

$

18,083

 

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

 

32,609

 

32,470

 

 

 

 

 

 

 

Basic normalized FFO available to common stockholders per share

 

$

0.63

 

$

0.57

 

Diluted normalized FFO available to common stockholders per share

 

$

0.61

 

$

0.56

 

 

 

 

 

 

 

Diluted normalized FFO available to common stockholders

 

$

19,929

 

$

18,193

 

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

 

32,609

 

32,470

 

 

 

 

 

 

 

Basic normalized AFFO per share

 

$

0.60

 

$

0.56

 

Diluted normalized AFFO per share

 

$

0.59

 

$

0.55

 

 

 

 

 

 

 

Diluted normalized AFFO

 

$

19,157

 

$

17,711

 

Weighted average shares used to calculate diluted normalized AFFO per share

 

32,609

 

32,470

 

 

 

 

 

 

 

Basic normalized FAD per share

 

$

0.62

 

$

0.57

 

Diluted normalized FAD per share

 

$

0.60

 

$

0.56

 

 

 

 

 

 

 

Diluted normalized FAD

 

$

19,685

 

$

18,163

 

Weighted average shares used to calculate diluted normalized FAD per share

 

32,609

 

32,470

 

 

5


 

LTC PROPERTIES, INC.

CONSOLIDATED BALANCE SHEETS

(amounts in thousands)

 

 

 

March 31, 2013

 

December 31, 2012

 

 

 

(unaudited)

 

(audited)

 

ASSETS

 

 

 

 

 

Real estate investments:

 

 

 

 

 

Land

 

$

75,407

 

$

75,407

 

Buildings and improvements

 

831,175

 

824,688

 

Accumulated depreciation and amortization

 

(204,646

)

(198,548

)

Net real estate property

 

701,936

 

701,547

 

Mortgage loans receivable, net of allowance for doubtful accounts: 2013 — $401; 2012 — $782

 

39,741

 

39,299

 

Real estate investments, net

 

741,677

 

740,846

 

Other assets:

 

 

 

 

 

Cash and cash equivalents

 

9,621

 

7,191

 

Debt issue costs, net

 

2,854

 

3,040

 

Interest receivable

 

802

 

789

 

Straight-line rent receivable, net of allowance for doubtful accounts: 2013 — $1,567; 2012 — $1,557

 

27,925

 

26,998

 

Prepaid expenses and other assets

 

6,656

 

7,548

 

Notes receivable

 

3,129

 

3,180

 

Total assets

 

$

792,664

 

$

789,592

 

 

 

 

 

 

 

LIABILITIES

 

 

 

 

 

Bank borrowings

 

$

117,500

 

$

115,500

 

Senior unsecured notes

 

185,800

 

185,800

 

Bonds payable

 

2,035

 

2,635

 

Accrued interest

 

2,285

 

3,279

 

Earn-out liabilities

 

6,854

 

6,744

 

Accrued expenses and other liabilities

 

11,379

 

12,526

 

Total liabilities

 

325,853

 

326,484

 

 

 

 

 

 

 

EQUITY

 

 

 

 

 

Stockholders’ equity:

 

 

 

 

 

Preferred stock $0.01 par value; 15,000 shares authorized; shares issued and outstanding: 2013 — 2,000; 2012 — 2,000

 

38,500

 

38,500

 

Common stock: $0.01 par value; 60,000 shares authorized; shares issued and outstanding: 2013 — 30,713; 2012 — 30,544

 

307

 

305

 

Capital in excess of par value

 

516,011

 

510,236

 

Cumulative net income

 

737,009

 

724,033

 

Accumulated other comprehensive income

 

143

 

152

 

Cumulative distributions

 

(825,159

)

(810,125

)

Total LTC Properties, Inc. stockholders’ equity

 

466,811

 

463,101

 

 

 

 

 

 

 

Non-controlling interests

 

—

 

7

 

Total equity

 

466,811

 

463,108

 

Total liabilities and equity

 

$

792,664

 

$

789,592

 

 

6