EX-99.1 2 a5465472ex99_1.txt EXHIBIT 99.1 Exhibit 99.1 Announces Operating Results for the Three and Six Months Ended June 30, 2007 WESTLAKE VILLAGE, Calif.--(BUSINESS WIRE)--Aug. 7, 2007--LTC Properties, Inc. (NYSE:LTC) released results of operations for the three and six months ended June 30, 2007 and announced that net income available to common stockholders for the second quarter of 2007 was $8.6 million or $0.36 per diluted share. For the same period in 2006, net income available to common stockholders was $7.7 million or $0.33 per diluted share, which included income from discontinued operations of $0.1 million. Revenues for the three months ended June 30, 2007 were $19.8 million compared to $18.6 million for the same period last year. For the six months ended June 30, 2007, net income available to common stockholders was $16.8 million or $0.71 per diluted share. For the same period in 2006, net income available to common stockholders was $47.1 million or $1.88 per diluted share, which included a gain of $31.9 million from the sale of four assisted living properties and discontinued operations related to properties sold of $0.7 million. Net income from continuing operations was $25.1 million or $0.70 per diluted share during the six months ended June 30, 2007 as compared to $23.1 million or $0.62 per diluted share during the same period last year. Revenues for the six months ended June 30, 2007, were $38.5 million versus $36.7 million for the same period last year. The Company announced that it had invested $1.4 million in the second quarter of 2007 under agreements to expand and renovate 12 properties operated by seven different operators. The total commitment under these agreements is $8.7 million, of which $7.7 million had been invested as of June 30, 2007. These investments are at an average yield of approximately 10%. The Company has scheduled a conference call on Tuesday, August 7, 2007, beginning at 10:00 a.m. Pacific time, in order to comment on the Company's performance and operating results for the quarter ended June 30, 2007. The conference call is accessible by dialing 866-271-0675 passcode 24142826. The international number is 617-213-8892. 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 August 7, 2007 through August 22, 2007. Callers can access the replay by dialing 888-286-8010 or 617-801-6888 and entering conference ID number 99443379. At June 30, 2007, LTC had investments in 109 skilled nursing properties, 94 assisted living properties and two schools 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. 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 Six Months Ended June 30, June 30, ------------------ ----------------- 2007 2006 2007 2006 --------- -------- -------- -------- Revenues: Rental income $14,430 $12,777 $28,815 $25,407 Interest income from mortgage loans and notes receivable 3,785 4,001 7,254 8,322 Interest and other income 1,578 1,868 2,453 2,951 --------- -------- -------- -------- Total revenues 19,793 18,646 38,522 36,680 --------- -------- -------- -------- Expenses: Interest expense 1,235 1,780 2,483 3,651 Depreciation and amortization 3,575 3,409 7,116 6,872 Legal expenses 116 120 145 170 Operating and other expenses 1,938 1,384 3,527 2,711 --------- -------- -------- -------- Total expenses 6,864 6,693 13,271 13,404 --------- -------- -------- -------- Income before non-operating income and minority interest Minority interest 86 86 172 172 --------- -------- -------- -------- Income from continuing operations 12,843 11,867 25,079 23,104 Discontinued operations: Income from discontinued operations -- 122 -- 688 Gain (loss) on sale of assets, net -- -- 149 31,938 --------- -------- -------- -------- Net income from discontinued operations -- 122 149 32,626 --------- -------- -------- -------- Net income 12,843 11,989 25,228 55,730 Preferred stock dividends (4,234) (4,306) (8,473) (8,615) --------- -------- -------- -------- Net income available to common stockholders $8,609 $7,683 $16,755 $47,115 ========= ======== ======== ======== Net Income per Common Share from Continuing Operations net of Preferred Stock Dividends: Basic $0.37 $0.32 $0.70 $0.62 ========= ======== ======== ======== Diluted $0.36 $0.32 $0.70 $0.62 ========= ======== ======== ======== Net Income per Common Share from Discontinued Operations: Basic $-- $0.01 $0.01 $1.40 ========= ======== ======== ======== Diluted $-- $0.01 $0.01 $1.33 ========= ======== ======== ======== Net Income per Common Share Available to Common Stockholders: Basic $0.37 $0.33 $0.71 $2.02 ========= ======== ======== ======== Diluted $0.36 $0.33 $0.71 $1.88 ========= ======== ======== ======== Basic weighted average shares outstanding 23,529 23,339 23,505 23,314 ========= ======== ======== ======== 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 Six Months Ended June 30, June 30, ------------------ ----------------- 2007 2006 2007 2006 --------- -------- -------- -------- Net income available to common stockholders $8,609 $7,683 $16,755 $47,115 Add: Real estate depreciation 3,575 3,431 7,116 6,916 Add: Non-cash compensation charges 635 252 979 504 Less (gain)/add loss on sale of assets, net -- -- (149) (31,938) --------- -------- -------- -------- FFO available to common stockholders $12,819 $11,366 $24,701 $22,597 ========= ======== ======== ======== Less: Non-cash compensation charges (635) (252) (979) (504) --------- -------- -------- -------- FFO including preferred stock redemption, impairment and non- cash compensation charges $12,184 $11,114 $23,722 $22,093 ========= ======== ======== ======== Basic FFO available to common stockholders per share $0.55 $0.49 $1.05 $0.97 ========= ======== ======== ======== Diluted FFO available to common stockholders per share $0.53 $0.48 $1.02 $0.94 ========= ======== ======== ======== Basic FFO including non-cash compensation charges per share $0.52 $0.48 $1.01 $0.95 ========= ======== ======== ======== Diluted FFO including non-cash compensation charges per share $0.50 $0.47 $0.98 $0.93 ========= ======== ======== ======== LTC PROPERTIES, INC. CONSOLIDATED BALANCE SHEETS (Amounts in thousands, except per share amounts) June 30, 2007 December 31, 2006 ------------- ----------------- ASSETS (unaudited) Real Estate Investments: Buildings and improvements, net of accumulated depreciation and amortization: 2007 -- $109,043; 2006 -- $102,091 $347,148 $351,148 Land 34,942 35,048 Mortgage loans receivable, net of allowance for doubtful accounts: 2007 -- $860; 2006 -- $1,280 88,541 116,992 ------------- ----------------- Real estate investments, net 470,631 503,188 Other Assets: Cash and cash equivalents 63,562 29,887 Debt issue costs, net 425 548 Interest receivable 2,627 3,170 Prepaid expenses and other assets 18,175 16,771 Notes receivable 3,492 4,264 Marketable securities 6,462 9,939 ------------- ----------------- Total Assets $565,374 $567,767 ============= ================= LIABILITIES AND STOCKHOLDERS' EQUITY Bank borrowings $-- $-- Mortgage loans payable 47,723 48,266 Bonds payable 5,130 5,545 Accrued interest 348 358 Accrued expenses and other liabilities 5,214 6,223 Distributions payable 3,416 3,423 ------------- ----------------- Total Liabilities 61,831 63,815 Minority interest 3,518 3,518 Stockholders' equity: Preferred stock $0.01 par value; 15,000 shares authorized; shares issued and outstanding: 2007 -- 8,820; 2006 -- 8,834 209,012 209,341 Common stock: $0.01 par value; 45,000 shares authorized; shares issued and outstanding: 2007 -- 23,724; 2006 -- 23,569 237 236 Capital in excess of par value 333,617 332,149 Cumulative net income 468,061 442,833 Other 1,127 1,693 Cumulative distributions (512,029) (485,818) ------------- ----------------- Total Stockholders' Equity 500,025 500,434 ------------- ----------------- Total Liabilities and Stockholders' Equity $565,374 $567,767 ============= ================= CONTACT: LTC Properties, Inc. Andre C. Dimitriadis, Chairman Wendy L. Simpson, CEO & President 805-981-8655