LTC Reports First Quarter 2013 Results Business Wire WESTLAKE VILLAGE, Calif. -- April 30, 2013 LTC Properties, Inc. (NYSE: LTC) (“LTC” or the “Company”) announced operating results for the quarter ended March 31, 2013. The Company reported a 10.1% increase in normalized Funds from Operations (“FFO”) to $19.0million for the quarter ended March 31, 2013, from $17.3 million for the comparable 2012 period. Normalized FFO per diluted common share was $0.61 for the quarter ended March 31, 2013, an increase of 8.9% from $0.56 for the comparable 2012 period. Normalized FFO for the quarter ended March 31, 2013, excludes $0.7 million of one-time severance and accelerated restricted stock vesting charges related to the retirement of our Senior Vice President, Marketing and Strategic Planning and $0.1 million of non-cash interest related to earn-out liabilities. The increase in normalized FFO and normalized FFO per diluted common share was due to higher revenues from acquisitions partially offset by an increase in interest expense and higher weighted average shares outstanding. FFO was $18.2million for the first quarter of 2013 compared to $17.2 million for the first quarter of 2012. FFO per diluted common share was $0.59 for the first quarter of 2013 compared to $0.56 for the first quarter of 2012. The increase in FFO and FFO per diluted common share was due to higher revenues from acquisitions partially offset by an increase in interest expense, general and administrative expenses and higher weighted average shares outstanding. Net income available to common stockholders for the quarter ended March 31, 2013 was $12.1million or $0.40 per diluted share. For the same period in 2012, net income available to common stockholders was $12.0million or $0.40 per diluted share. The increase in net income available to common stockholders was due primarily to higher revenues from acquisitions partially offset by an increase in interest expense, higher depreciation and amortization expense, the one-time charges related to our Senior Vice President’s retirement and higher weighted average shares outstanding. Conference Call Information The Company will conduct a conference call on Wednesday, May 1, 2013, at 7:00 a.m. Pacific Time, in order to comment on the Company’s performance and operating results for the quarter ended March 31, 2013. The conference call is accessible by dialing 888-317-6016. The international number is 412-317-6016. An audio replay of the conference call will be available from May 1 through May 17, 2013. Callers can access the replay by dialing 877-344-7529 or 412-317-0088 and entering conference number 10027691. The earnings release will be available on our website. The Company’s supplemental information package for the current period will also be available on the Company’s website at www.LTCProperties.com in the “Presentations” section of the “Investor Information” tab. About LTC At March 31, 2013, LTC had investments in 90 skilled nursing properties, 104 assisted living properties, 9range of care properties, two schools and five parcels of land under development. These properties are located in 29 states. Assisted living properties, independent living properties, memory care properties and combinations thereof are included in the assisted living property type. Range of care properties consist of properties providing skilled nursing and any combination of assisted living, independent living and/or memory care services. The Company is a self-administered real estate investment trust that primarily invests in senior housing and long-term care facilities through facility lease transactions, mortgage loans and other investments. For more information on LTC Properties, Inc., visit the Company’s website at www.LTCProperties.com. Forward Looking Statements 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. Please see our most recent Annual Report on Form 10-K, our subsequent Quarterly Reports on Form 10-Q, and in our other publicly available filings with the Securities and Exchange Commission for a discussion of these and other 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 Ended March 31, 2013 2012 Revenues: Rental income $24,511 $20,872 Interest income from mortgage loans 1,059 1,532 Interest and other income 93 236 Total revenues 25,663 22,640 Expenses: Interest expense 3,133 2,033 Depreciation and amortization 6,136 5,167 General and administrative expenses 3,418 2,524 Total expenses 12,687 9,724 Income from continuing operations 12,976 12,916 Discontinued operations: Gain on sale of assets, net — 16 Net income from discontinued — 16 operations Net income 12,976 12,932 Income allocated to non-controlling — (11) interests Net income attributable to LTC 12,976 12,921 Properties, Inc. Income allocated to participating (98) (94) securities Income allocated to preferred (818) (818) stockholders Net income available to common $12,060 $12,009 stockholders Basic earnings per common share: Continuing operations $0.40 $0.40 Discontinued operations $0.00 $0.00 Net income available to common $0.40 $0.40 stockholders Diluted earnings per common share: Continuing operations $0.40 $0.40 Discontinued operations $0.00 $0.00 Net income available to common $0.40 $0.40 stockholders Weighted average shares used to calculate earnings per common share: Basic 30,365 30,189 Diluted 30,399 30,234 NOTE: 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 allocable to common stockholders. Supplemental Reporting Measures FFO, adjusted FFO (“AFFO”), and Funds Available for Distribution (“FAD”) are supplemental measures of a real estate investment trust’s (“REIT”) financial performance that are not defined by U.S. generally accepted accounting principles (“GAAP”). Investors, analysts and the Company use FFO, AFFO and FAD as supplemental measures of operating performance and we believe they are helpful in evaluating the operating performance of a REIT. Real estate values historically rise and fall with market conditions, but cost accounting for real estate assets in accordance with U.S. GAAP assumes that the value of real estate assets diminishes predictably over time. We believe that by excluding the effect of historical cost depreciation, which may be of limited relevance in evaluating current performance, FFO, AFFO and FAD facilitate comparisons of operating performance between periods. Additionally the Company believes that normalized FFO, normalized AFFO and normalized FAD provide useful information because they allow investors, analysts and our management to compare the Company’s operating performance on a consistent basis without having to account for differences caused by unanticipated items. FFO, as defined by the National Association of Real Estate Investment Trusts (“NAREIT”), means net income available to common stockholders (computed in accordance with U.S. GAAP) excluding gains or losses on the sale of real estate and impairment write-downs of depreciable real estate plus real estate depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures. Normalized FFO represents FFO adjusted for certain items detailed in the reconciliations. The Company’s computation of FFO may not be comparable to FFO reported by other REITs that do not define the term in accordance with the current NAREIT definition or that have a different interpretation of the current NAREIT definition from the Company; therefore, caution should be exercised when comparing our company’s FFO to that of other REITs. We define AFFO as FFO excluding the effects of straight-line rent and amortization of lease inducement. U.S. GAAP requires rental revenues related to non-contingent leases that contain specified rental increases over the life of the lease to be recognized evenly over the life of the lease. This method results in rental income in the early years of a lease that is higher than actual cash received, creating a straight-line rent receivable asset included in our consolidated balance sheet. At some point during the lease, depending on its terms, cash rent payments exceed the straight-line rent which results in the straight-line rent receivable asset decreasing to zero over the remainder of the lease term. By excluding the non-cash portion of straight-line rental revenue and amortization of lease inducement, investors, analysts and our management can compare AFFO between periods. Normalized AFFO represents AFFO adjusted for certain items detailed in the reconciliations. We define FAD as AFFO excluding the effects of non-cash compensation charges. FAD is useful in analyzing the portion of cash flow that is available for distribution to stockholders. Investors, analysts and the Company utilize FAD as an indicator of common dividend potential. The FAD payout ratio, which represents annual distributions to common shareholders expressed as a percentage of FAD, facilitates the comparison of dividend coverage between REITs. Normalized FAD represents FAD adjusted for certain items detailed in the reconciliations. The Company uses FFO, normalized FFO, normalized AFFO and normalized FAD as supplemental performance measures of our cash flow generated by operations and cash available for distribution to stockholders. FFO, normalized FFO, normalized AFFO and normalized FAD do not represent cash generated from operating activities in accordance with U.S. GAAP, and are not necessarily indicative of cash available to fund cash needs and should not be considered an alternative to net income available to common stockholders. Reconciliation of FFO, Normalized FFO, Normalized AFFO and Normalized FAD The following table reconciles net income available to common stockholders to FFO available to common stockholders, normalized FFO available to common stockholders, normalized AFFO and normalized FAD (unaudited, amounts in thousands, except per share amounts): Three Months Ended March 31, 2013 2012 Net income available to $12,060 $12,009 common stockholders Add: Depreciation and 6,136 5,167 amortization Less: Gain on sale of real — (16 ) estate, net FFO available to common 18,196 17,160 stockholders Add: Non-cash interest related to earn-out 110 110 liabilities Add: Non-recurring one-time 707 ^(1) — items Normalized FFO available to 19,013 17,270 common stockholders Less: Non-cash rental income (772 ) (482 ) Normalized adjusted FFO 18,241 16,788 (AFFO) Add: Non-cash compensation 528 452 charges Normalized funds available $18,769 $17,240 for distribution (FAD) _______________ (1) Represents the one-time severance and accelerated restricted stock vesting charges related to the retirement of our Senior Vice President, Marketing and Strategic Planning. Basic FFO available to common stockholders per $0.60 $0.57 share Diluted FFO available to common stockholders per $0.59 $0.56 share Diluted FFO available to $19,112 $18,083 common stockholders Weighted average shares used to calculate diluted FFO per 32,609 32,470 share available to common stockholders Basic normalized FFO available to common $0.63 $0.57 stockholders per share Diluted normalized FFO available to common $0.61 $0.56 stockholders per share Diluted normalized FFO available to common $19,929 $18,193 stockholders Weighted average shares used to calculate diluted normalized FFO per share 32,609 32,470 available to common stockholders Basic normalized AFFO per $0.60 $0.56 share Diluted normalized AFFO per $0.59 $0.55 share Diluted normalized AFFO $19,157 $17,711 Weighted average shares used to calculate diluted 32,609 32,470 normalized AFFO per share Basic normalized FAD per $0.62 $0.57 share Diluted normalized FAD per $0.60 $0.56 share Diluted normalized FAD $19,685 $18,163 Weighted average shares used to calculate diluted 32,609 32,470 normalized FAD per share LTC PROPERTIES, INC. CONSOLIDATED BALANCE SHEETS (amounts in thousands) March 31, 2013 December 31, 2012 (unaudited) (audited) ASSETS Real estate investments: Land $ 75,407 $ 75,407 Buildings and improvements 831,175 824,688 Accumulated depreciation and amortization (204,646 ) (198,548 ) Net real estate property 701,936 701,547 Mortgage loans receivable, net of allowance for doubtful accounts: 2013 — 39,741 39,299 $401; 2012 — $782 Real estate investments, net 741,677 740,846 Other assets: Cash and cash equivalents 9,621 7,191 Debt issue costs, net 2,854 3,040 Interest receivable 802 789 Straight-line rent receivable, net of allowance for doubtful accounts: 2013 — 27,925 26,998 $1,567; 2012 — $1,557 Prepaid expenses and other assets 6,656 7,548 Notes receivable 3,129 3,180 Total assets $792,664 $789,592 LIABILITIES Bank borrowings $117,500 $115,500 Senior unsecured notes 185,800 185,800 Bonds payable 2,035 2,635 Accrued interest 2,285 3,279 Earn-out liabilities 6,854 6,744 Accrued expenses and other liabilities 11,379 12,526 Total liabilities 325,853 326,484 EQUITY Stockholders' equity: Preferred stock $0.01 par value; 15,000 shares authorized; shares issued and 38,500 38,500 outstanding: 2013 — 2,000; 2012 — 2,000 Common stock: $0.01 par value; 60,000 shares authorized; shares issued and 307 305 outstanding: 2013 — 30,713; 2012 — 30,544 Capital in excess of par value 516,011 510,236 Cumulative net income 737,009 724,033 Accumulated other comprehensive income 143 152 Cumulative distributions (825,159 ) (810,125 ) Total LTC Properties, Inc. stockholders' 466,811 463,101 equity Non-controlling interests — 7 Total equity 466,811 463,108 Total liabilities and equity $792,664 $789,592 Contact: LTC Properties, Inc. Wendy L. Simpson Pam Kessler 805-981-8655
LTC Reports First Quarter 2013 Results
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