EX-99.1 2 a4944510ex991.txt EXHIBIT 99.1 Exhibit 99.1 LTC Announces Operating Results for the Three and Six Months Ended June 30, 2005 MALIBU, Calif.--(BUSINESS WIRE)--Aug. 2, 2005--LTC Properties, Inc. (NYSE:LTC) released results of operations for the three and six months ended June 30, 2005 and announced that net income available to common stockholders for the second quarter was $5.8 million or $0.27 per diluted share. For the same period in 2004, net income available to common stockholders was $4.4 million or $0.23 per diluted share which included a loss on sale of assets of $0.3 million or $0.01 per share. Revenues for the three months ended June 30, 2005, were $17.0 million versus $16.6 million for the same period last year. For the six months ended June 30, 2005, net income available to common stockholders was $23.0 million or $1.02 per diluted share. In the first quarter of 2005, the Company received $22.3 million in cash from CLC Healthcare, Inc. and Healthcare Holdings, Inc., its wholly-owned subsidiary, as payment in full of their note receivable to LTC. The Company stated that the effect of the note payoff is included in the results for the six months ended June 30, 2005 as follows: $3.7 million in rental income related to past due rents that were not accrued, $2.3 million of interest income related to past due interest that was not accrued, a $0.5 million reimbursement for certain expenses paid in prior years on behalf of CLC Healthcare, Inc., a bonus accrual of $1.0 million related to the realization of the value of the note and non-operating income of $6.2 million, net of $1.3 million of expenses associated with the realization of the value of the note. For the same period in 2004, net income available to common stockholders was $5.4 million or $0.29 per diluted share which included a gain on sale of assets of $0.7 million, or $0.04 per share, and a charge of $4.0 million, or $0.21 per share, related to LTC's redemption of its 9.5% Series A and 9.0% Series B Preferred Stock. Revenues for the six months ended June 30, 2005 were $39.9 million versus $33.4 million for the same period last year. The Company has scheduled a conference call for August 3, 2005 at 9:00 AM Pacific time in order to comment on the Company's performance and operating results for the quarter ended June 30, 2005. The conference call is accessible by dialing (888) 396-2386 passcode 78746388. The earnings release and any additional financial information that may be discussed on the conference call will also be available on our website. An audio replay of the conference call will be available from 11:00 AM Pacific time on August 3, 2005 through August 17, 2005. Callers can access the replay by dialing (888) 286-8010 and entering conference ID number 49570119. Webcast replays will also be available on our website until August 18, 2005. At June 30, 2005, LTC had investments in 100 skilled nursing properties, 101 assisted living properties and two schools in 32 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. For more information on LTC Properties, Inc., visit the Company's website at www.ltcproperties.com. 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. LTC PROPERTIES, INC. CONSOLIDATED STATEMENTS OF INCOME (Amounts in thousands, except per share amounts) (Unaudited) Three Months Six Months Ended June 30, Ended June 30, ----------------- ----------------- 2005 2004 2005 2004 -------- -------- -------- -------- Revenues: Rental income $12,237 $11,644 $28,109 $23,096 Interest income from mortgage loans and notes receivable 3,230 2,334 5,912 4,472 Interest income from REMIC Certificates 1,219 2,047 2,683 4,438 Interest and other income 310 578 3,163 1,443 -------- -------- -------- -------- Total revenues 16,996 16,603 39,867 33,449 -------- -------- -------- -------- Expenses: Interest expense 2,223 3,357 4,480 6,670 Depreciation and amortization 3,317 3,210 6,570 6,345 Legal expenses 63 91 136 109 Operating and other expenses 1,203 1,482 3,118 2,733 -------- -------- -------- -------- Total expenses 6,806 8,140 14,304 15,857 -------- -------- -------- -------- Income before non-operating income and minority interest 10,190 8,463 25,563 17,592 Non-operating income -- -- 6,217 -- Minority interest (86) (259) (172) (542) -------- -------- -------- -------- Income from continuing operations 10,104 8,204 31,608 17,050 Discontinued operations: Income from discontinued operations -- 76 -- 156 Gain (loss) on sale of assets, net 30 (257) 30 718 -------- -------- -------- -------- Net income (loss) from discontinued operations 30 (181) 30 874 -------- -------- -------- -------- Net income 10,134 8,023 31,638 17,924 Preferred stock redemption charge -- -- -- (4,029) Preferred stock dividends (4,341) (3,581) (8,688) (8,527) -------- -------- -------- -------- Net income available to common stockholders $5,793 $4,442 $22,950 $5,368 ======== ======== ======== ======== Net Income per Common Share from Continuing Operations net of Preferred Stock Dividends: Basic $0.27 $0.24 $1.06 $0.24 ======== ======== ======== ======== Diluted $0.27 $0.24 $1.02 $0.24 ======== ======== ======== ======== Net Income (Loss) per Common Share from Discontinued Operations: Basic $-- ($0.01) $-- $0.05 ======== ======== ======== ======== Diluted $-- ($0.01) $-- $0.05 ======== ======== ======== ======== Net Income per Common Share Available to Common Stockholders: Basic $0.27 $0.23 $1.06 $0.29 ======== ======== ======== ======== Diluted $0.27 $0.23 $1.02 $0.29 ======== ======== ======== ======== Basic weighted average shares outstanding 21,614 19,165 21,553 18,576 ======== ======== ======== ======== 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. 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 Six Months Ended June 30, Ended June 30, --------------- ----------------- 2005 2004 2005 2004 ------- ------- -------- -------- Net income available to common stockholders $5,793 $4,442 $22,950 $5,368 Add: Real estate depreciation 3,317 3,250 6,570 6,429 Add: Impairment charge -- -- -- -- Less (gain)/add loss on sale of assets, net (30) 257 (30) (718) ------- ------- -------- -------- FFO available to common stockholders $9,080 $7,949 $29,490 $11,079 ======= ======= ======== ======== Add: Preferred stock redemption charge -- -- -- 4,029 ------- ------- -------- -------- FFO excluding preferred stock redemption charge $9,080 $7,949 $29,490 $15,108 ======= ======= ======== ======== Basic FFO available to common stockholders per share $0.42 $0.42 $1.37 $0.60 ======= ======= ======== ======== Diluted FFO available to common stockholders per share $0.41 $0.39 $1.29 $0.58 ======= ======= ======== ======== Basic FFO excluding preferred stock redemption charge per share $0.42 $0.42 $1.37 $0.81 ======= ======= ======== ======== Diluted FFO excluding preferred stock redemption charge per share $0.41 $0.39 $1.29 $0.76 ======= ======= ======== ======== LTC PROPERTIES, INC. CONSOLIDATED BALANCE SHEETS (Amounts in thousands, except per share amounts) June 30, December 31, 2005 2004 ----------- --------- ASSETS (unaudited) Real Estate Investments: Buildings and improvements, net of accumulated depreciation and amortization: 2005 - $89,756; 2004 - $83,369 $357,635 $359,347 Land 27,056 26,401 Mortgage loans receivable, net of allowance for doubtful accounts: 2005 and 2004 - $1,280 112,189 90,878 REMIC Certificates 30,616 44,053 ----------- --------- Real estate investments, net 527,496 520,679 Other Assets: Cash and cash equivalents 13,962 4,315 Debt issue costs, net 1,065 1,348 Interest receivable 3,007 3,161 Prepaid expenses and other assets 3,726 4,451 Notes receivable 3,576 13,926 ----------- --------- Total Assets $552,832 $547,880 =========== ========= LIABILITIES AND STOCKHOLDERS' EQUITY Bank borrowings $-- $-- Mortgage loans payable 70,533 71,286 Bonds payable and capital lease obligations 13,401 13,967 Senior mortgage participation payable 14,962 15,407 Accrued interest 640 649 Accrued expenses and other liabilities 4,008 3,040 Distributions payable 5,905 3,618 ----------- --------- Total Liabilities 109,449 107,967 Minority interest 3,518 3,706 Stockholders' equity: Preferred stock $0.01 par value: 15,000 shares authorized; shares issued and outstanding: 2005 - 9,023; 2004 - 9,201 214,073 218,532 Common stock: $0.01 par value; 45,000 shares authorized; shares issued and outstanding: 2005 - 21,649; 2004 - 21,374 216 214 Capital in excess of par value 295,121 292,740 Cumulative net income 342,974 311,336 Other (1,496) 2,070 Cumulative distributions (411,023) (388,685) ----------- --------- Total Stockholders' Equity 439,865 436,207 ----------- --------- Total Liabilities and Stockholders' Equity $552,832 $547,880 =========== ========= CONTACT: LTC Properties, Inc. Andre C. Dimitriadis or Wendy L. Simpson, (805) 981-8655