EXHIBIT 99.1 - PRESS RELEASE
Published on May 6, 2005
Exhibit 99.1
LTC Announces Operating Results for the Three Months Ended March 31, 2005
MALIBU, Calif.--(BUSINESS WIRE)--May 6, 2005--LTC Properties, Inc.
(NYSE:LTC) released results of operations for the three months ended
March 31, 2005 and announced that net income available to common
stockholders for the first quarter was $17.2 million or $0.74 per
diluted share. For the same period in 2004, net income available to
common stockholders was $0.9 million or $0.05 per diluted share. In
February 2005, the Company received $22.3 million in cash from CLC
Healthcare, Inc. and Healthcare Holdings, Inc., its wholly-owned
subsidiary, as payment in full of their note receivable to LTC. The
Company stated that included in the 2005 results is the following
effect of the note 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
CLC Healthcare, Inc., 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. Included in the 2004 results was
a charge of $4.0 million related to LTC's redemption of its 9.5%
Series A and 9.0% Series B Preferred Stock, and a gain on sale of
assets of $1.0 million. Revenues for the three months ended March 31,
2005, were $22.9 million including the $6.0 million of past due rental
and interest income, versus $16.8 million for the same period last
year.
On April 18, 2005, the Company announced that it raised the common
dividend from $0.30 to $0.33 per quarter and will begin paying its
common dividend on a monthly basis beginning the second quarter of
2005.
The Company has scheduled a conference call for May 9, 2005 at
9:00 a.m. Pacific time in order to comment on the Company's
performance, acquisitions and operating results for the quarter ended
March 31, 2005. The conference call is accessible by dialing
800-901-5213 passcode 46218914. The international number is
617-786-2962. The earnings release and any additional financial
information that may be discussed on the conference call will also be
available on our Web site. An audio replay of the conference call will
be available from 11:00 a.m. Pacific time on May 9, 2005 through May
30, 2005. Callers can access the replay by dialing 888-286-8010 or
617-801-6888 and entering conference ID number 79768531. Webcast
replays will also be available on our Web site until May 23, 2005.
At March 31, 2005, LTC had investments in 95 skilled nursing
properties, 101 assisted living properties 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 Web site 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,
-----------------
2005 2004
-------- --------
Revenues:
Rental income $15,872 $11,452
Interest income from mortgage loans and notes
receivable 2,682 2,138
Interest income from REMIC Certificates 1,464 2,391
Interest and other income 2,853 865
-------- --------
Total revenues 22,871 16,846
-------- --------
Expenses:
Interest expense 2,257 3,313
Depreciation and amortization 3,253 3,135
Legal expenses 73 18
Operating and other expenses 1,915 1,251
-------- --------
Total expenses 7,498 7,717
-------- --------
Income before non-operating income and minority
interest 15,373 9,129
Non-operating income 6,217 --
Minority interest (86) (283)
-------- --------
Income from continuing operations 21,504 8,846
Discontinued operations:
Income from discontinued operations -- 80
Gain on sale of assets, net -- 975
-------- --------
Net income from discontinued operations -- 1,055
-------- --------
Net income 21,504 9,901
Preferred stock redemption charge -- (4,029)
Preferred stock dividends (4,347) (4,946)
-------- --------
Net income available to common stockholders $17,157 $926
======== ========
Net Income (Loss) per Common Share from Continuing
Operations net of Preferred Stock Dividends:
Basic $0.80 $(0.01)
======== ========
Diluted $0.74 $(0.01)
======== ========
Net Income per Common Share from Discontinued
Operations:
Basic -- $0.06
======== ========
Diluted -- $0.06
======== ========
Net Income per Common Share Available to Common
Stockholders:
Basic $0.80 $0.05
======== ========
Diluted $0.74 $0.05
======== ========
Basic weighted average shares outstanding 21,491 17,986
======== ========
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,
----------------
2005 2004
-------- -------
Net income available to common stockholders $17,157 $926
Add: Real estate depreciation 3,253 3,179
Add: Impairment charge -- --
Less (gain)/add loss on sale of assets, net -- (975)
-------- -------
FFO available to common stockholders $20,410 $3,130
======== =======
Add: Preferred stock redemption charge -- 4,029
-------- -------
FFO excluding preferred stock redemption charge $20,410 $7,159
======== =======
Basic FFO available to common stockholders per share $0.95 $0.17
======== =======
Diluted FFO available to common stockholders per
share $0.88 $0.17
======== =======
Basic FFO excluding preferred stock redemption charge
per share $0.95 $0.40
======== =======
Diluted FFO excluding preferred stock redemption
charge per share $0.88 $0.37
======== =======
LTC PROPERTIES, INC.
CONSOLIDATED BALANCE SHEETS
(Amounts in thousands, except per share amounts)
March December
31, 2005 31, 2004
--------- ---------
ASSETS
Real Estate Investments:
Buildings and improvements, net of accumulated
depreciation and
amortization: 2005 - $86,537;
2004 - $83,369 $358,193 $359,347
Land 26,905 26,401
Mortgage loans receivable, net of allowance for
doubtful accounts:
2005 and 2004 - $1,280 101,639 90,878
REMIC Certificates 40,796 44,053
--------- ---------
Real estate investments, net 527,533 520,679
Other Assets:
Cash and cash equivalents 12,819 4,315
Debt issue costs, net 1,197 1,348
Interest receivable 2,949 3,161
Prepaid expenses and other assets 4,218 4,451
Notes receivable 3,396 13,926
--------- ---------
Total Assets $552,112 $547,880
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Mortgage loans payable 70,905 71,286
Bonds payable and capital lease obligations 13,503 13,967
Senior mortgage participation payable 15,187 15,407
Accrued interest 650 649
Accrued expenses and other liabilities 3,591 3,040
Distributions payable 3,528 3,618
--------- ---------
Total Liabilities 107,364 107,967
Minority interest 3,518 3,706
Stockholders' equity:
Preferred stock $0.01 par value: 15,000 shares
authorized; shares issued and outstanding:
2005 - 9,032; 2004 - 9,201 214,312 218,532
Common stock: $0.01 par value; 45,000 shares
authorized; shares issued and outstanding:
2005 - 21,606; 2004 - 21,374 216 214
Capital in excess of par value 295,056 292,740
Cumulative net income 332,840 311,336
Other (1,649) 2,070
Cumulative distributions (399,545) (388,685)
--------- ---------
Total Stockholders' Equity 441,230 436,207
--------- ---------
Total Liabilities and Stockholders' Equity $552,112 $547,880
========= =========
CONTACT: LTC Properties, Inc.
Andre C. Dimitriadis or Wendy L. Simpson, 805-981-8655