EX-99.1 2 a5131734ex99-1.txt EXHIBIT 99.1 Exhibit 99.1 LTC Announces Operating Results for the Three Months Ended March 31, 2006 WESTLAKE VILLAGE, Calif.--(BUSINESS WIRE)--April 25, 2006--LTC Properties, Inc. (NYSE:LTC) released results of operations for the three months ended March 31, 2006 and announced that net income available to common stockholders for the first quarter was $39.4 million or $1.55 per diluted share. For the same period in 2005, net income available to common stockholders was $17.2 million or $0.74 per diluted share. Results for first quarter 2006 included a gain of $31.9 million from a sale of four assisted living properties with a total of 431 units located in four states and income from discontinued operations related to these properties of $0.4 million. Results for first quarter 2005 included income from discontinued operations of $0.8 million and the following effect of a note receivable payoff: $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 a lessee, 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. Revenues for the three months ended March 31, 2006, were $18.2 million versus $15.8 million for the same period last year excluding the one time effects of the note payoff described above. The Company has scheduled a conference call for April 25, 2006, at 12:00 p.m. Pacific time in order to comment on the Company's performance and operating results for the quarter ended March 31, 2006. The conference call is accessible by dialing 866-543-6405 passcode 55599171. The international number is 617-213-8897. 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 April 25, 2006 through May 16, 2006. Callers can access the replay by dialing 888-286-8010 or 617-801-6888 and entering conference ID number 74141611. Webcast replays will also be available on our website. At March 31, 2006, LTC had investments in 121 skilled nursing properties, 97 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 (Unaudited, amounts in thousands, except per share amounts) Three Months Ended March 31, -------------------------------- 2006 2005 --------------- -------------- Revenues: Rental income $ 12,775 $ 14,776 Interest income from mortgage loans and notes receivable 4,321 2,682 Interest income from REMIC Certificates -- 1,464 Interest and other income 1,083 2,853 --------------- -------------- Total revenues 18,179 21,775 --------------- -------------- Expenses: Interest expense 1,871 2,172 Depreciation and amortization 3,485 3,028 Legal expenses 50 73 Operating and other expenses 1,329 1,909 --------------- -------------- Total expenses 6,735 7,182 --------------- -------------- Income before non-operating income and minority interest 11,444 14,593 Non-operating income -- 6,217 Minority interest (86) (86) --------------- -------------- Income from continuing operations 11,358 20,724 Discontinued operations: Income from discontinued operations 445 780 Gain on sale of assets, net 31,938 -- --------------- -------------- Net income from discontinued operations 32,383 780 --------------- -------------- Net income 43,741 21,504 Preferred stock dividends (4,309) (4,347) --------------- -------------- Net income available to common stockholders $ 39,432 $ 17,157 =============== ============== Net Income per Common Share from Continuing Operations net of Preferred Stock Dividends: Basic $ 0.30 $ 0.76 =============== ============== Diluted $ 0.30 $ 0.71 =============== ============== Net Income per Common Share from Discontinued Operations: Basic $ 1.39 $ 0.04 =============== ============== Diluted $ 1.28 $ 0.04 =============== ============== Net Income per Common Share Available to Common Stockholders: Basic $ 1.69 $ 0.80 =============== ============== Diluted $ 1.55 $ 0.74 =============== ============== Basic weighted average shares outstanding 23,290 21,491 =============== ============== 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 Ended March 31, -------------------------------- 2006 2005(a) --------------- -------------- Net income available to common stockholders $ 39,432 $ 17,157 Add: Real estate depreciation 3,485 3,253 Add: Non-cash compensation charges 252 113 Less (gain)/add loss on sale of assets, net (31,938) -- --------------- -------------- FFO available to common stockholders $ 11,231 $ 20,523 =============== ============== Less: Non-cash compensation charges (252) (113) --------------- -------------- FFO including preferred stock redemption, impairment and non-cash compensation charges $ 10,979 $ 20,410 =============== ============== Basic FFO available to common stockholders per share $ 0.48 $ 0.96 =============== ============== Diluted FFO available to common stockholders per share $ 0.47 $ 0.88 =============== ============== Basic FFO including non-cash compensation charges per share $ 0.47 $ 0.95 =============== ============== Diluted FFO including non-cash compensation charges per share $ 0.46 $ 0.88 =============== ============== (a) Includes $0.48 of diluted FFO resulting from $11.7 million additional net income from past due rents and interest income, expense reimbursement, income from realization value on a note receivable net of $2.3 million of advisory expenses and bonus accrual. Excluding the one time effects of these items, diluted FFO available to common stockholders per share for the three months ended March 31, 2005 would have been $0.40. LTC PROPERTIES, INC. CONSOLIDATED BALANCE SHEETS (Amounts in thousands, except per share amounts) March 31, December 31, 2006 2005 ---------------- --------------- (unaudited) ASSETS Real Estate Investments: Buildings and improvements, net of accumulated depreciation and amortization: 2006 - $92,864; 2005 - $89,545 $ 342,195 $ 345,065 Land 33,376 33,376 Properties held for sale, net of accumulated depreciation and amortization: 2006 - $0; 2005 - $6,226 -- 26,511 Mortgage loans receivable, net of allowance for doubtful accounts: 2006 - $1,280; 2005 - $1,280 131,984 148,052 --------------- -------------- Real estate investments, net 507,555 553,004 Other Assets: Cash and cash equivalents 54,824 3,569 Debt issue costs, net 1,055 1,268 Interest receivable 3,669 3,436 Prepaid expenses and other assets 5,498 5,130 Notes receivable 8,462 8,931 Marketable debt securities 9,935 9,933 --------------- -------------- Total Assets $ 590,998 $ 585,271 =============== ============== LIABILITIES AND STOCKHOLDERS' EQUITY Bank borrowings $ -- $ 16,000 Mortgage loans payable 58,567 58,891 Bonds payable and capital lease obligations 5,545 5,935 Senior mortgage participation payable 9,996 11,535 Accrued interest 490 524 Accrued expenses and other liabilities 5,150 8,427 Liabilities related to properties held for sale -- 3,852 Distributions payable 11,897 11,890 --------------- -------------- Total Liabilities 91,645 117,054 Minority interest 3,518 3,524 Stockholders' equity: Preferred stock $0.01 par value: 15,000 shares authorized; shares issued and outstanding: 2006 - 8,932; 2005 - 8,993 211,792 213,317 Common stock: $0.01 par value; 45,000 shares authorized; shares issued and outstanding: 2006 - 23,349; 2005 - 23,276 233 233 Capital in excess of par value 330,124 331,415 Cumulative net income 407,786 364,045 Other 1,994 (941) Cumulative distributions (456,094) (443,376) --------------- -------------- Total Stockholders' Equity 495,835 464,693 --------------- -------------- Total Liabilities and Stockholders' Equity $ 590,998 $ 585,271 =============== ============== CONTACT: LTC Properties, Inc. Andre C. Dimitriadis or Wendy L. Simpson, 805-981-8655