EX-99 3 a4499877ex991.txt EXHIBIT 99.1 PRESS RELEASE EXHIBIT 99.1 LTC Announces Operating Results for the Three and Nine Months Ended September 30, 2003 MALIBU, Calif.--(BUSINESS WIRE)--Oct. 23, 2003--LTC Properties, Inc. (NYSE:LTC) released results of operations for the three and nine months ended September 30, 2003. LTC announced that for the three months ended September 30, 2003, net income available to common stockholders was $2.1 million, or $0.12 per diluted share, compared to $2.8 million, or $0.15 per diluted share, for the three months ended September 30, 2002. The results for the three months ended September 30, 2003 included a loss on sale of assets of $0.3 million, compared to a gain on sale of assets of $0.8 million for the same period in 2002. Additionally, the results for the comparative 2002 period included an impairment charge of $0.2 million and a loss from discontinued operations of $0.6 million. The Company reported no impairment charge and no loss from discontinued operations for the three months ended September 30, 2003. Revenues for the three months ended September 30, 2003 were $16.2 million versus $17.5 million for the same period last year. Funds From Operations ("FFO"), a non-GAAP measure of a REIT's financial performance defined as net income available 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, was $5.7 million, or $0.32 per diluted share, compared to $6.5 million, or $0.35 per diluted share, for the same period in 2002. FFO is used in the REIT industry as a supplemental measure of financial performance, but is not a substitute for net income per share available to common stockholders determined in accordance with GAAP. Please see the reconciliation of net income available to common stockholders to FFO available to common stockholders below. For the nine months ended September 30, 2003, net income available to common stockholders was $4.9 million, or $0.27 per diluted share, compared to $15.8 million, or $0.85 per diluted share, for the nine months ended September 30, 2002. Revenues for the nine months ended September 30, 2003 were $48.1 million versus $51.7 million for the same period last year. FFO was $15.5 million, or $0.86 per diluted share, compared to $18.6 million, or $1.00 per diluted share, for the same period in 2002. Reflected in the results for the three months ended September 30, 2003, was the issuance in September 2003 of 2.2 million shares of 8.5% Series E Convertible Preferred Stock that generated net cash proceeds of approximately $53.1 million. The cash proceeds and cash on hand were used to fully repay amounts outstanding under LTC's Senior Secured Revolving Line of Credit. Additionally, in the three months ended September 30, 2003, LTC received net proceeds of $1.8 million from the sale of one skilled nursing facility in Georgia formerly operated by CLC Healthcare, Inc. and recognized a loss on sale of $0.3 million. LTC also announced that it had leased to a third-party operator two skilled nursing facilities in Washington formerly operated by Sun Healthcare Group, Inc. ("Sun") for $0.5 million in the initial year beginning October 1, 2003 with 2.0% increases annually for 10 years. Additionally, LTC leased three skilled nursing facilities in Arizona formerly operated by Sun to a third-party operator for $1.0 million in the initial year beginning September 1, 2003 with annual increases based on the consumer price index beginning in September 2008 and a lease term of 16 years. At September 30, 2003, LTC had investments in 92 skilled nursing facilities, 96 assisted living residences and one school 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. 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. -0- *T LTC PROPERTIES, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (Amounts in thousands, except per share amounts) (Unaudited) Three Months Ended Nine Months Ended September 30, September 30, -------------------- ------------------ 2003 2002 2003 2002 ---------- --------- --------- -------- Revenues: Rental income $10,197 $10,502 $30,179 $31,559 Interest income from mortgage loans and notes receivable 2,549 2,928 7,545 8,046 Interest income from REMIC Certificates 2,470 3,137 7,807 9,623 Interest and other income 975 951 2,590 2,462 ---------- --------- --------- -------- Total revenues 16,191 17,518 48,121 51,690 ---------- --------- --------- -------- Expenses: Interest expense 4,738 5,417 14,931 16,153 Depreciation and amortization 3,190 3,457 9,605 10,620 Impairment charge -- 215 1,260 5,097 Legal expenses 238 103 1,014 239 Operating and other expenses 1,337 1,662 4,407 4,626 ---------- --------- --------- -------- Total expenses 9,503 10,854 31,217 36,735 ---------- --------- --------- -------- Income before minority interest 6,688 6,664 16,904 14,955 Minority interest (321) (322) (968) (978) ---------- --------- --------- -------- Income from continuing operations 6,367 6,342 15,936 13,977 Discontinued operations: Income (loss) from discontinued operations 29 (607) 45 (819) (Loss) gain on sale of assets, net (343) 819 336 13,939 ---------- --------- --------- -------- Net (loss) income from discontinued operations (314) 212 381 13,120 ---------- --------- --------- -------- Net income 6,053 6,554 16,317 27,097 Preferred stock dividends (3,924) (3,762) (11,441) (11,281) ---------- --------- --------- -------- Net income available to common stockholders $2,129 $2,792 $4,876 $15,816 ========== ========= ========= ======== Net Income per Common Share from Continuing Operations Net of Preferred Stock Dividends: Basic $0.14 $0.14 $0.25 $0.15 ========== ========= ========= ======== Diluted $0.14 $0.14 $0.25 $0.15 ========== ========= ========= ======== Net (Loss) Income per Common Share from Discontinued Operations: Basic ($0.02) $0.01 $0.02 $0.71 ========== ========= ========= ======== Diluted ($0.02) $0.01 $0.02 $0.71 ========== ========= ========= ======== Net Income per Common Share Available to Common Stockholders: Basic $0.12 $0.15 $0.27 $0.86 ========== ========= ========= ======== Diluted $0.12 $0.15 $0.27 $0.85 ========== ========= ========= ======== Basic weighted average shares outstanding 17,803 18,393 17,847 18,393 ========== ========= ========= ======== NOTE: 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. 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 available to common stockholders. *T 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 available 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 available to common stockholders determined in accordance with accounting principles generally accepted in the United States. The following table reconciles net income available to common stockholders to funds from operations available to common stockholders (unaudited, in thousands, except per share amounts): Three Months Ended Nine Months Ended September 30, September 30, ------------------ ------------------ 2003 2002 2003 2002 ---------- ------- --------- -------- Net income available to common stockholders $2,129 $2,792 $4,876 $15,816 Add: Real estate depreciation 3,206 3,554 9,713 10,938 Add: Impairment charge -- 925 1,260 5,807 Less: Loss (Gain) on sale of assets, net 343 (819) (336) (13,939) ---------- ------- --------- -------- Funds from operations available to common stockholders $5,678 $6,452 $15,513 $18,622 ========== ======= ========= ======== Basic funds from operations available to common stockholders per share $0.32 $0.35 $0.87 $1.01 ========== ======= ========= ======== Diluted funds from operations available to common stockholders per share $0.32 $0.35 $0.86 $1.00 ========== ======= ========= ======== LTC PROPERTIES, INC. CONSOLIDATED BALANCE SHEETS (Amounts in thousands, except per share amounts) September 30, December 31, 2003 2002 -------------- ------------- ASSETS (Unaudited) Real Estate Investments: Buildings and improvements, net of accumulated depreciation and amortization: 2003 - $72,415; 2002 - $62,935 $367,480 $375,518 Land 25,893 25,712 Properties held for sale, net of accumulated depreciation and amortization: 2003 - $0; 2002 - $1,381 -- 4,110 Mortgage loans receivable, net of allowance for doubtful accounts: 2003 - $1,280; 2002 - $1,280 82,398 82,675 REMIC Certificates 62,302 64,419 -------------- ------------- Real estate investments, net 538,073 552,434 Other Assets: Cash and cash equivalents 11,476 8,001 Debt issue costs, net 3,374 5,309 Interest receivable 3,704 3,781 Prepaid expenses and other assets 4,294 2,069 Notes receivable (includes $5,095 due from CLC Healthcare, Inc. in 2003 and $3,095 in 2002) 15,217 15,622 Marketable debt securities 9,872 7,968 Note receivable from CLC Healthcare, Inc. 4,047 4,741 -------------- ------------- 51,984 47,491 -------------- ------------- Total Assets $590,057 $599,925 ============== ============= LIABILITIES AND STOCKHOLDERS' EQUITY Bank borrowings $-- $48,421 Mortgage loans payable 127,617 136,971 Bonds payable and capital lease obligations 14,776 15,361 Senior mortgage participation payable 29,017 29,667 Accrued interest 1,068 1,293 Accrued expenses and other liabilities 5,602 6,419 Distributions payable 1,148 981 -------------- ------------- Total Liabilities 179,228 239,113 Minority interest 13,155 13,399 Stockholders' equity: Preferred stock $0.01 par value: 2003 - 15,000 shares authorized; shares issued and outstanding: 2003 - 9,252; 2002 - 7,062 217,484 165,183 Common stock: $0.01 par value; 2003 - 35,000 shares authorized; shares issued and outstanding: 2003 - 17,806; 2002 - 18,055 178 181 Capital in excess of par value 251,093 253,050 Cumulative net income 266,946 250,629 Other (3,967) (6,112) Cumulative distributions (334,060) (315,518) -------------- ------------- Total Stockholders' Equity 397,674 347,413 -------------- ------------- Total Liabilities and Stockholders' Equity $590,057 $599,925 ============== ============= CONTACT: LTC Properties, Inc. Andre C. Dimitriadis/Wendy L. Simpson, 805-981-8655