EX-99.1 2 a5073645ex99-1.txt EXHIBIT 99.1 Exhibit 99.1 LTC Announces Operating Results for the Three and Twelve Months Ended December 31, 2005 WESTLAKE VILLAGE, Calif.--(BUSINESS WIRE)--Feb. 7, 2006--LTC Properties, Inc. (NYSE:LTC) released results of operations for the three and twelve months ended December 31, 2005 and announced that net income available to common stockholders for the fourth quarter was $6.5 million or $0.28 per diluted share. For the same period in 2004, net income available to common stockholders was $4.7 million or $0.23 per diluted share. Results for fourth quarter 2005 included a loss of $0.7 million from a sale of a skilled nursing property located in New Mexico and income from discontinued operations of $0.8 million. Results for fourth quarter 2004 included income from discontinued operations of $0.8 million. Revenues for the three months ended December 31, 2005, were $18.2 million versus $15.2 million for the same period last year. For the twelve months ended December 31, 2005, net income available to common stockholders was $35.4 million or $1.56 per diluted share as compared to $15.0 million or $0.77 per diluted share for the year ended December 31, 2004. Results for 2005 included a loss on sale of assets of $1.5 million and income from discontinued operations of $3.1 million. The $1.5 million loss on sale was related to two skilled nursing properties, one located in New Mexico and the other property located in Texas. The New Mexico property was part of a master lease and the rent from that master lease was not adjusted as a result of this sale. The Texas property was closed and not generating revenue to the Company. Included in these results for 2005 is the effect in the first quarter of the receipt of $22.3 million in cash related to the payoff of a note receivable which included past due rental and interest income that had previously not been recorded by the Company. The Company stated that the effect of the note payoff is included in the results for the first quarter and twelve months ended December 31, 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 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. Results for 2004 included a gain on sale of assets of $0.6 million, income from discontinued operations of $3.1 million, a $0.3 million impairment charge and a charge of $4.0 million, related to LTC's redemption of its 9.5% Series A and 9.0% Series B Preferred Stock. Excluding the effects of the collection of the note payoff in 2005 as discussed above and the preferred stock redemption charge in 2004, net income available to common stockholders was $1.06 per diluted share and $0.97 per diluted share for 2005 and 2004, respectively. Revenues for the twelve months ended December 31, 2005 were $73.0 million versus $62.7 million for the same period last year. The Company has scheduled a conference call for February 7, 2006 at 1:00 PM Pacific Time in order to comment on the Company's performance and operating results for the quarter ended December 31, 2005. The conference call is accessible by dialing 866-202-3048, passcode 40260459. 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 2:00 PM Pacific time on February 7, 2006 through February 14, 2006. Callers can access the replay by dialing 888-286-8010 and entering conference ID number 48550378. Webcast replays will also be available on our website. At December 31, 2005, LTC had investments in 126 skilled nursing properties, 101 assisted living properties and two schools in 33 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) Three Months Ended Year Ended December 31, December 31, ----------------- ---------------- 2005 2004 2005 2004 -------- -------- -------- ------- Revenues: Rental income $12,468 $10,672 $50,293 $42,400 Interest income from mortgage loans and notes receivable 4,709 2,531 14,500 9,138 Interest income from REMIC Certificates -- 1,109 3,480 7,342 Interest and other income 1,006 869 4,719 3,853 -------- -------- -------- -------- Total revenues 18,183 15,181 72,992 62,733 -------- -------- -------- -------- Expenses: Interest expense 1,882 2,266 8,310 11,523 Depreciation and amortization 3,409 3,001 12,826 11,915 Legal expenses 19 59 194 193 Impairment charge -- 274 -- 274 Operating and other expenses 2,064 1,102 6,407 5,232 -------- -------- -------- -------- Total expenses 7,374 6,702 27,737 29,137 -------- -------- -------- -------- Income before non-operating income and minority interest 10,809 8,479 45,255 33,596 Non-operating income -- -- 6,217 -- Minority interest (92) (101) (349) (896) -------- -------- -------- -------- Income from continuing operations 10,717 8,378 51,123 32,700 Discontinued operations: Income (loss) from discontinued operations 788 798 3,090 3,080 (Loss) gain on sale of assets, net (691) -- (1,504) 608 -------- -------- -------- -------- Net income (loss) from discontinued operations 97 798 1,586 3,688 -------- -------- -------- -------- Net income 10,814 9,176 52,709 36,388 Preferred stock redemption charge -- -- -- (4,029) Preferred stock dividends (4,325) (4,436) (17,343) (17,356) -------- -------- -------- -------- Net income available to common stockholders $6,489 $4,740 $35,366 $15,003 ======== ======== ======== ======== Net Income per Common Share from Continuing Operations net of Preferred Stock Dividends: Basic $0.28 $0.19 $1.51 $0.58 ======== ======== ======== ======== Diluted $0.28 $0.19 $1.49 $0.58 ======== ======== ======== ======== Net Income per Common Share from Discontinued Operations: Basic $-- $0.04 $0.07 $0.19 ======== ======== ======== ======== Diluted $-- $0.04 $0.07 $0.19 ======== ======== ======== ======== Net Income per Common Share Available to Common Stockholders: Basic $0.28 $0.23 $1.58 $0.77 ======== ======== ======== ======== Diluted $0.28 $0.23 $1.56 $0.77 ======== ======== ======== ======== Basic weighted average shares outstanding 23,218 20,598 22,325 19,432 ======== ======== ======== ======== 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 (in thousands, except per share amounts): Three Months Ended Year Ended December 31, December 31, ---------------- ----------------- 2005 2004 2005 2004 -------- ------- -------- -------- Net income available to common stockholders $6,489 $4,740 $35,366 $15,003 Add: Real estate depreciation 3,615 3,228 13,698 12,927 Add: Preferred stock redemption charges -- -- -- 4,029 Add: Impairment charge -- 274 -- 274 Add: Non-cash compensation charges 182 142 579 450 Less (gain)/add loss on sale of assets, net 691 -- 1,504 (608) -------- ------- -------- -------- FFO available to common stockholders $10,977 $8,384 $51,147 $32,075 ======== ======= ======== ======== Less: Preferred stock redemption charge -- -- -- (4,029) Less: Impairment charge -- (274) -- (274) Less: Non-cash compensation charges (182) (142) (579) (450) -------- ------- -------- -------- FFO including preferred stock redemption, impairment and non- cash compensation charges $10,795 $7,968 $50,568 $27,322 ======== ======= ======== ======== Basic FFO available to common stockholders per share $0.47 $0.41 $2.29 $1.65 ======== ======= ======== ======== Diluted FFO available to common stockholders per share $0.46 $0.40 $2.19 $1.57 ======== ======= ======== ======== Basic FFO including preferred stock redemption, impairment and non- cash compensation charges per share $0.46 $0.39 $2.27 $1.41 ======== ======= ======== ======== Diluted FFO including preferred stock redemption, impairment and non-cash compensation charges per share $0.45 $0.38 $2.17 $1.36 ======== ======= ======== ======== LTC PROPERTIES, INC. CONSOLIDATED BALANCE SHEETS (Amounts in thousands, except per share amounts) December December 31, 31, 2005 2004 --------- --------- ASSETS Real Estate Investments: Buildings and improvements, net of accumulated depreciation and amortization: 2005 - $89,545; 2004 - $77,112 $345,065 $330,451 Land 33,376 25,879 Properties held for sale, net of accumulated depreciation and Amortization: 2005 - $6,226, 2004: $6,257 26,511 29,418 Mortgage loans receivable, net of allowance for doubtful accounts: 2005 and 2004 - $1,280 148,052 90,878 REMIC Certificates -- 44,053 --------- --------- Real estate investments, net 553,004 520,679 Other Assets: Cash and cash equivalents 3,569 4,315 Debt issue costs, net 1,268 1,348 Interest receivable 3,436 3,161 Prepaid expenses and other assets 5,130 4,451 Notes receivable 8,931 13,926 Marketable debt securities 9,933 -- --------- --------- Total Assets $585,271 $547,880 ========= ========= LIABILITIES AND STOCKHOLDERS' EQUITY Bank borrowings $16,000 $-- Mortgage loans payable 58,891 71,286 Bonds payable and capital lease obligations 5,935 10,071 Senior mortgage participation payable 11,535 15,407 Accrued interest 524 621 Accrued expenses and other liabilities 8,427 3,029 Liabilities related to properties held for sale 3,852 3,935 Distributions payable 11,890 3,618 --------- --------- Total Liabilities 117,054 107,967 Minority interest 3,524 3,706 Stockholders' equity: Preferred stock $0.01 par value: 15,000 shares authorized; shares issued and outstanding: 2005 - 8,993; 2004 - 9,201 213,317 218,532 Common stock: $0.01 par value; 45,000 shares authorized; shares issued and outstanding: 2005 - 23,276; 2004 - 21,374 233 214 Capital in excess of par value 331,415 292,740 Cumulative net income 364,045 311,336 Other (941) 2,070 Cumulative distributions (443,376) (388,685) --------- --------- Total Stockholders' Equity 464,693 436,207 --------- --------- Total Liabilities and Stockholders' Equity $585,271 $547,880 ========= ========= CONTACT: LTC Properties, Inc. Andre C. Dimitriadis or Wendy L. Simpson, 805-981-8655