LTC Announces Fourth Quarter Operating Results
WESTLAKE VILLAGE, Calif.--(BUSINESS WIRE)-- LTC Properties, Inc. (NYSE:LTC) released results of operations for the three and twelve months ended December 31, 2009 and announced that net income allocable to common stockholders for the fourth quarter was $7.2 million or $0.31 per diluted share. For the same period in 2008, net income allocable to common stockholders was $5.9 million or $0.26 per diluted share. Revenues for the three months ended December 31, 2009, were $17.5 million versus $16.7 million for the same period last year.
For the twelve months ended December 31, 2009, net income allocable to common stockholders was $29.4 million or $1.27 per diluted share which includes $0.6 million related to the repurchase of 109,484 shares of preferred stock and $0.2 million related to the prepayment of a mortgage loan. For the same period in 2008, net income allocable to common stockholders was $28.4 million or $1.24 per diluted share which includes $1.0 million related to the repurchase of 636,300 shares of preferred stock. Revenues for the twelve months ended December 31, 2009, were $69.9 million versus $69.4 million for the same period last year.
The Company will conduct a conference call on Thursday February 25, 2010, at 10:00 a.m. Pacific time, in order to comment on the Company's performance and operating results for the quarter ended December 31, 2009. The conference call is accessible by dialing 877-485-3104. The international number is 201-689-8579. The earnings release will be available on the Company's website. An audio replay of the conference call will be available from February 25, 2010 through March 11, 2010. Callers can access the replay by dialing 877-660-6853 or 201-612-7415 and entering account number 356 and replay identification number 343430.
At December 31, 2009, LTC had investments in 98 skilled nursing properties, 104 assisted living properties and two schools in 29 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 Twelve Months Ended
December 31, December 31,
2009 2008 2009 2008
(unaudited) (audited)
Revenues:
Rental income $ 15,063 $ 14,223 $ 60,005 $ 57,562
Interest income from 2,020 2,023 8,558 9,708
mortgage loans
Interest and other income 382 414 1,331 2,087
Total revenues 17,465 16,660 69,894 69,357
Expenses:
Interest expense 372 953 2,418 4,114
Depreciation and 3,733 3,793 14,822 14,960
amortization
Provisions for doubtful 202 125 775 85
accounts
Operating and other 2,102 1,898 7,519 7,006
expenses
Total expenses 6,409 6,769 25,534 26,165
Income from continuing 11,056 9,891 44,360 43,192
operations
Discontinued operations:
Gain on sale of assets, -- -- -- 92
net
Net income from -- -- -- 92
discontinued operations
Net income 11,056 9,891 44,360 43,284
Income allocated to (67 ) (77 ) (296 ) (307 )
non-controlling interests
Net income attributable to 10,989 9,814 44,064 42,977
LTC Properties, Inc.
Income allocated to (34 ) (35 ) (139 ) (159 )
participating securities
Income allocated to (3,785 ) (3,841 ) (14,515 ) (14,401 )
preferred stockholders
Net income allocable to $ 7,170 $ 5,938 $ 29,410 $ 28,417
common stockholders
Basic earnings per common
share:
Continuing operations $ 0.31 $ 0.26 $ 1.27 $ 1.23
Discontinued operations $ 0.00 $ 0.00 $ 0.00 $ 0.00
Net income allocable to $ 0.31 $ 0.26 $ 1.27 $ 1.24
common stockholders
Diluted earnings per
common share:
Continuing operations $ 0.31 $ 0.26 $ 1.27 $ 1.23
Discontinued operations $ 0.00 $ 0.00 $ 0.00 $ 0.00
Net income allocable to $ 0.31 $ 0.26 $ 1.27 $ 1.24
common stockholders
Weighted average shares
used to calculate earnings
per common share:
Basic 23,148 23,043 23,099 22,974
Diluted 23,240 23,050 23,182 23,090
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. 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.
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. Our management uses FFO as a supplemental measure of our operating performance and we believe FFO is helpful in evaluating the operating performance of real estate investment trusts. We define FFO as net income allocable 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 allocable to common stockholders determined in accordance with accounting principles generally accepted in the United States.
The following table reconciles net income allocable to common stockholders to funds from operations allocable to common stockholders (unaudited, amounts in thousands, except per share amounts):
Three Months Ended Twelve Months Ended
December 31, December 31,
2009 2008 2009 2008
Net income allocable to $ 7,170 $ 5,938 $ 29,410 $ 28,417
common stockholders
Add: Real estate 3,733 3,793 14,822 14,960
depreciation
Add: Non-cash compensation 364 306 1,389 1,229
charges
Less (gain)/add loss on sale -- -- -- (92 )
of assets, net
FFO allocable to common 11,267 10,037 45,621 44,514
stockholders
Less: Non-cash compensation (364 ) (306 ) (1,389 ) (1,229 )
charges
FFO including non-cash $ 10,903 $ 9,731 $ 44,232 $ 43,285
compensation charges
Basic FFO allocable to
common stockholders per $ 0.49 $ 0.44 $ 1.98 $ 1.94
share
Diluted FFO allocable to
common stockholders per $ 0.48 $ 0.43 $ 1.94 $ 1.91
share
Diluted FFO allocable to $ 12,206 $ 10,987 $ 49,408 $ 48,362
common stockholders
Weighted average shares used
to calculate diluted FFO per 25,489 25,397 25,447 25,370
share allocable to common
stockholders
Basic FFO including non-cash
compensation charges per $ 0.47 $ 0.42 $ 1.91 $ 1.88
share
Diluted FFO including
non-cash compensation $ 0.46 $ 0.42 $ 1.89 $ 1.86
charges per share
Diluted FFO including
non-cash compensation $ 11,842 $ 10,604 $ 48,019 $ 47,133
charges
Weighted average shares used
to calculate diluted FFO per 25,489 25,217 25,447 25,370
share including non-cash
compensation charges
LTC PROPERTIES, INC.
CONSOLIDATED BALANCE SHEETS
(Amounts in thousands)
(audited)
December 31, 2009 December 31, 2008
ASSETS
Real Estate Investments:
Buildings and improvements, net of
accumulated depreciation and $ 337,719 $ 337,171
amortization: 2009 -- $145,180; 2008 --
$130,475
Land 36,561 34,971
Mortgage loans receivable, net of
allowance for doubtful 69,883 77,541
accounts: 2009 -- $704; 2008 -- $760
Real estate investments, net 444,163 449,683
Other Assets:
Cash and cash equivalents 8,856 21,118
Debt issue costs, net 476 831
Interest receivable 1,964 2,010
Straight-line rent receivable, net of
allowance for doubtful accounts: 2009 -- 17,309 13,900
$631; 2008 -- $140
Prepaid expenses and other assets 8,663 9,148
Notes receivable 2,689 2,895
Marketable securities 6,473 6,468
Total Assets $ 490,593 $ 506,053
LIABILITIES AND EQUITY
Bank borrowings $ 13,500 $ --
Mortgage loans payable 7,685 32,063
Bonds payable 4,225 4,690
Accrued interest 102 251
Accrued expenses and other liabilities 7,801 5,015
Distributions payable 2,967 3,022
Total Liabilities 36,280 45,041
Stockholders' equity:
Preferred stock $0.01 par value; 15,000
shares authorized; shares issued and 186,801 189,560
outstanding: 2009 -- 7,932; 2008 --
8,042
Common stock: $0.01 par value; 45,000
shares authorized; shares issued and 233 231
outstanding: 2009 -- 23,312; 2008 --
23,136
Capital in excess of par value 326,163 321,979
Cumulative net income 577,629 533,565
Other 390 735
Cumulative distributions (638,884 ) (588,192 )
Total LTC Properties, Inc. Stockholders' 452,332 457,878
Equity
Non-controlling interests 1,981 3,134
Total Equity 454,313 461,012
Total Liabilities and Equity $ 490,593 $ 506,053
LTC PROPERTIES, INC.
SUPPLEMENTAL INFORMATION
(Unaudited, amounts in thousands)
Non-Cash Revenue Components
4Q09 1Q10(1) 2Q10(1) 3Q10(1) 4Q10(1)
Straight-line rent $ 996 $ 921 $ 917 $ 826 $ 533
Amort. Lease break fee (163 ) (166 ) (167 ) (167 ) (167 )
Net $ 833 $ 755 $ 750 $ 659 $ 366
(1) Projections based on current in-place leases and leases related to the
acquisitions subsequent to December 31, 2009 of two skilled nursing
properties with a total of 286 beds. Also, projections do not assume any
increase in straight-line rent from additional acquisitions.
Maturities
2010 2011 2012 2013 2014
Lease -- 1 lease on 3 leases on 2 leases on 4 leases on
Maturities
1 property 3 properties 2 properties 41 properties
Mortgage
Loan
Receivable $ -- $ 7,301 $ 2,221 $ 16,214 $ 6,996
Maturities
(1)
Debt
Maturities $ 7,581 (2) $ -- $ -- $ -- $ --
(1)
(1) Represents principal amount due at maturity.
(2) 8.7% fixed prepayable May 1. Represents principal amount due at maturity.
Note: At December 31, 2009, the Company had a floating rate debt balance of
$4,225 at an all-in floating rate of 2.20%. This debt amortizes to $720 which
is due in 2015 and is redeemable at anytime.
Portfolio Snapshot
Twelve months
ended December 31,
2009 Number
% of Number of of Investment
Revenues Properties Beds/ per
Type of Gross % of Rental Interest (3) Units Bed/Unit
Property Investments Investments Income Income (1)
(2)
Assisted
Living $ 295,421 50.1 % $ 30,064 $ 3,075 48.3 % 104 4,790 $ 61.67
Properties
Skilled
Nursing 281,606 47.7 % 28,762 5,177 49.5 % 98 11,319 $ 24.88
Properties
Schools 13,020 2.2 % 1,179 306 2.2 % 2 N/A N/A
Totals $ 590,047 100.0 % $ 60,005 $ 8,558 100.0 % 204 16,109
(1) See the Company's Annual Report on Form 10-K for the year ended December 31, 2009, Item 1.
Business General - Owned Properties for discussion of bed/unit count.
(2) Includes Interest Income from Mortgage Loans.
(3) Includes Rental Income and Interest Income from Mortgage Loans.
LTC PROPERTIES, INC.
SUPPLEMENTAL INFORMATION
(Unaudited, amounts in thousands)
Balance Sheet
Metrics
Year Ended Quarter Ended
12/31/09 12/31/09 9/30/09 6/30/09 3/31/09 12/31/08
Debt to book
capitalization 5.3 % 5.3 % (1) 2.6 % (4) 5.3 % (6) 7.3 % 7.4 %
ratio
Debt &
Preferred
Stock to book 44.2 % 44.2 % (1) 42.6 % (4) 44.1 % (6) 45.2 % 45.5 %
capitalization
ratio
Debt to market
capitalization 3.0 % 3.0 % (1) 1.6 % (4) 3.8 % (6) 5.9 % (7) 5.4 %
ratio
Debt &
Preferred
Stock to 25.1 % 25.1 % (2) 25.3 % (4) 29.5 % (6) 32.8 % (7) 30.1 %
market
capitalization
ratio
Interest 25.5x 40.8x (3) 45.2x (5) 18.7x (5) 17.7x (8) 15.4x
coverage ratio
Fixed charge 3.5x 3.6x (3) 3.7x (5) 3.3x 3.4x (8) 3.1x
coverage ratio
(1) Increase primarily due to the increase in bank borrowing.
(2) Decrease primarily due to the increase in market capitalization partially offset by the increase in bank
borrowing.
(3) Decrease primarily due to the increase in operating and other expenses relating to transaction costs
incurred on the acquisition of three assisted living properties.
(4) Decrease primarily due to the repayment of $23.9 million of mortgage debt in June and July of 2009.
(5) Increase primarily due to the decrease in interest expense relating to the repayment of debt.
(6) Decrease primarily due to the repayment of $15.8 million on two mortgage loans secured by 10 assisted
living properties located in various states.
(7) Increase primarily due to the decrease in market capitalization.
(8) Increase primarily due to increases in rental income resulting from lease restructuring and one-time
interest income resulting from the prepayment of a mortgage loan.
Source: LTC Properties, Inc.
Released February 24, 2010