PRESS RELEASE
Published on February 2, 2005
EXHIBIT 99.1
LTC Announces Operating Results for the Three and Twelve Months Ended
December 31, 2004, and Declares First Quarter Cash Dividend
on Its Common Stock
MALIBU, Calif.--(BUSINESS WIRE)--Feb. 2, 2005--LTC Properties,
Inc. (NYSE:LTC) released results of operations for the three and
twelve months ended December 31, 2004, and announced that net income
available to common stockholders for the fourth quarter was $4.7
million or $0.23 per diluted share. For the same period in 2003, net
income available to common stockholders was $1.6 million or $0.09 per
diluted share. Included in these 2003 results was a $2.1 million
write-off of debt issue costs related to LTC's early retirement of its
Secured Revolving Credit, an additional charge of $1.2 million related
to LTC's redemption of 40% of its 9.5% Series A Preferred Stock, a
gain of $2.0 million resulting from Assisted Living Concepts, Inc.'s
redemption of its secured debentures owned by LTC and a gain on sale
of assets of $2.0 million. Revenues for the three months ended
December 31, 2004, were $16.3 million versus $15.8 million for the
same period last year.
For the year ended December 31, 2004, net income available to
common stockholders was $15.0 million or $0.77 per diluted share.
Included in these results was a gain on sale of assets of $0.6
million, a $0.3 million impairment charge and a $4.0 million charge
taken in the first quarter of 2004 for the final redemption of LTC's
Series A and Series B Preferred Stock. For the same period in 2003,
net income available to common stockholders was $6.5 million or $0.36
per diluted share which included an impairment charge of $1.3 million,
a $2.3 million gain on sale of assets, a $2.1 million write-off of
debt issue costs related to LTC's early retirement of its Secured
Revolving Credit, an additional charge of $1.2 million related to
LTC's redemption of 40% of its 9.5% Series A Preferred Stock and a
gain of $2.0 million resulting from Assisted Living Concepts, Inc.'s
redemption of its secured debentures owned by LTC. Revenues for the
twelve months ended December 31, 2004, were $66.9 million versus $63.2
million for the same period last year.
LTC also announced that it has declared a dividend for the fourth
quarter of fiscal 2004 of $0.30 per common share payable on March 31,
2005, to stockholders of record on March 18, 2005.
The Company has scheduled a conference call for February 3, 2005,
at 9:00 a.m. Pacific time in order to comment on the Company's
performance and operating results for the quarter ended December 31,
2004. The conference call is accessible by dialing 800-265-0241,
passcode 50085653. The international number is 617-847-8704. 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 p.m. Pacific time on February 3, 2005, through February 25, 2005.
Callers can access the replay by dialing 888-286-8010 or 617-801-6888
and entering conference ID number 94424339. Webcast replays will also
be available on our website until March 3, 2005.
At December 31, 2005, LTC had investments in 92 skilled nursing
facilities, 100 assisted living residences and two schools in 31
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,
----------------- -----------------
2004 2003 2004 2003
-------- -------- -------- --------
Revenues:
Rental income $11,816 $10,672 $46,584 $40,320
Interest income from mortgage
loans and notes receivable 2,531 2,269 9,138 9,814
Interest income from REMIC
Certificates 1,109 2,157 7,342 9,964
Interest and other income 869 674 3,853 3,115
-------- -------- -------- --------
Total revenues 16,325 15,772 66,917 63,213
-------- -------- -------- --------
Expenses:
Interest expense 2,351 6,176 11,866 20,799
Depreciation and amortization 3,228 3,151 12,816 12,314
Impairment charge 274 -- 274 1,260
Legal expenses 59 69 193 1,076
Operating and other expenses 1,111 2,117 5,297 6,525
-------- -------- -------- --------
Total expenses 7,023 11,513 30,446 41,974
-------- -------- -------- --------
Income before non-operating income
and minority interest 9,302 4,259 36,471 21,239
Non-operating income -- 1,970 -- 1,970
Minority interest (101) (332) (896) (1,300)
-------- -------- -------- --------
Income from continuing operations 9,201 5,897 35,575 21,909
Discontinued operations:
(Loss) income from discontinued
operations (25) 142 205 111
Gain on sale of assets, net -- 1,963 608 2,299
-------- -------- -------- --------
Net (loss) income from discontinued
operations (25) 2,105 813 2,410
-------- -------- -------- --------
Net income 9,176 8,002 36,388 24,319
Preferred stock redemption charge -- (1,241) (4,029) (1,241)
Preferred stock dividends (4,436) (5,155) (17,356) (16,596)
-------- -------- -------- --------
Net income available to common
stockholders $4,740 $1,606 $15,003 $6,482
======== ======== ======== ========
Net Income (Loss) per Common Share
from Continuing Operations net of
Preferred Stock Dividends:
Basic $0.23 $(0.03) $0.73 $0.23
======== ======== ======== ========
Diluted $0.23 $(0.03) $0.73 $0.23
======== ======== ======== ========
Net Income per Common Share from
Discontinued Operations:
Basic $-- $0.12 $0.04 $0.13
======== ======== ======== ========
Diluted $-- $0.12 $0.04 $0.13
======== ======== ======== ========
Net Income per Common Share
Available to Common Stockholders:
Basic $0.23 $0.09 $0.77 $0.36
======== ======== ======== ========
Diluted $0.23 $0.09 $0.77 $0.36
======== ======== ======== ========
Basic weighted average shares
outstanding 20,598 17,804 19,432 17,836
======== ======== ======== ========
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,
--------------- -----------------
2004 2003 2004 2003
------- ------- -------- --------
Net income available to common
stockholders $4,740 $1,606 $15,003 $6,482
Add: Real estate depreciation 3,228 3,285 12,927 12,998
Add: Impairment charge 274 -- 274 1,260
Less (gain)/add loss on sale of
assets, net -- (1,963) (608) (2,299)
------- ------- -------- --------
FFO available to common
stockholders $8,242 $2,928 $27,596 $18,441
======= ======= ======== ========
Add: Preferred stock redemption
charge -- 1,241 4,029 1,241
------- ------- -------- --------
FFO excluding preferred stock
redemption charge $8,242 $4,169 $31,625 $19,682
======= ======= ======== ========
Basic FFO available to common
stockholders per share $0.40 $0.16 $1.42 $1.03
======= ======= ======== ========
Diluted FFO available to common
stockholders per share $0.39 $0.16 $1.37 $1.03
======= ======= ======== ========
Basic FFO excluding preferred stock
redemption charge per share $0.40 $0.23 $1.63 $1.10
======= ======= ======== ========
Diluted FFO excluding preferred
stock redemption charge per share $0.39 $0.23 $1.55 $1.09
======= ======= ======== ========
In October 2003, NAREIT informed its member companies that the
Securities and Exchange Commission (SEC) has taken the position that
asset impairment charges should not be excluded in calculating FFO.
The SEC's interpretation is that recurring impairments on real
property are not an appropriate adjustment. If the Company adopted the
SEC's interpretation of FFO and did not adjust for the asset
impairment charges, the Company's basic FFO, diluted FFO and FFO per
diluted share for historical periods would be different than the
amounts reported in this release and in previous disclosures.
According to NAREIT, there is inconsistency among NAREIT member
companies as to the adoption of the SEC's interpretation of FFO.
Therefore, a comparison of the Company's FFO results to another
company's FFO results may not be meaningful.
The following table presents the Company's FFO results reflecting
the impact of asset impairment charges as interpreted by the SEC (in
thousands, except per share amounts):
Three Months
Ended Year Ended
December 31, December 31,
--------------- -----------------
2004 2003 2004 2003
------- ------- -------- --------
FFO available to common
stockholders $8,242 $2,928 $27,596 $18,441
Less: Impairment charges (274) -- (274) (1,260)
------- ------- -------- --------
FFO available to common
stockholders including impairment
charges $7,968 $2,928 $27,322 $17,181
======= ======= ======== ========
Basic FFO available to common
stockholders including impairment
charges per share $0.39 $0.16 $1.41 $0.96
------- ------- -------- --------
Diluted FFO available to common
stockholders including impairment
charges per share $0.38 $0.16 $1.36 $0.96
======= ======= ======== ========
LTC PROPERTIES, INC.
CONSOLIDATED BALANCE SHEETS
(Amounts in thousands, except per share amounts)
December 31, December 31,
2004 2003
--------------- ---------------
ASSETS
Real Estate Investments:
Buildings and improvements, net of
accumulated depreciation and
amortization: 2004 - $83,369; 2003 -
$70,895 $359,247 $352,461
Land 26,501 24,824
Properties held for sale, net of
accumulated depreciation and
amortization: 2004 - $0; 2003 -
$2,481 -- 5,340
Mortgage loans receivable, net of
allowance for doubtful accounts:
2004 and 2003 - $1,280 90,878 71,465
REMIC Certificates 44,053 61,662
--------------- ---------------
Real estate investments, net 520,679 515,752
Other Assets:
Cash and cash equivalents 4,315 17,919
Debt issue costs, net 1,348 1,496
Interest receivable 3,161 3,809
Prepaid expenses and other assets 4,451 4,495
Notes receivable 13,926 19,172
Marketable debt securities -- 12,281
--------------- ---------------
Total Assets $547,880 $574,924
=============== ===============
LIABILITIES AND STOCKHOLDERS' EQUITY
Bank borrowings $-- $--
Mortgage loans payable 71,286 120,819
Bonds payable and capital lease
obligations 13,967 14,686
Senior mortgage participation payable 15,407 18,250
Accrued interest 649 943
Accrued expenses and other liabilities 3,040 2,478
Accrued expenses and other liabilities
related to properties held for sale -- 2,540
Liability for Series A 9.5% Preferred
Stock redemption - 1,226 shares -- 30,642
Distributions payable 3,618 2,383
--------------- ---------------
Total Liabilities 107,967 192,741
Minority interest 3,706 13,401
Stockholders' equity:
Preferred stock $0.01 par value: 15,000
shares authorized; shares issued and
outstanding: 2004 - 9,201; 2003 -
8,026 218,532 189,163
Common stock: $0.01 par value; 45,000
shares authorized; shares issued and
outstanding: 2004 - 21,374; 2003 -
17,807 214 178
Capital in excess of par value 292,740 250,055
Cumulative net income 311,336 274,948
Other 2,070 (638)
Cumulative distributions (388,685) (344,924)
--------------- ---------------
Total Stockholders' Equity 436,207 368,782
--------------- ---------------
Total Liabilities and
Stockholders' Equity $547,880 $574,924
=============== ===============
CONTACT: LTC Properties, Inc.
Andre C. Dimitriadis, Chairman & CEO
Wendy L. Simpson, Vice Chairman & CFO
805-981-8655