Exhibit 99
ENTERTAINMENT PROPERTIES REPORTS RECORD FOURTH QUARTER AND YEAR-END RESULTS
Kansas City, MO, February 25, 2004, -- Entertainment Properties Trust
(NYSE:EPR), today reported financial results for the fourth quarter and year
ended December 31, 2003. The Company reported record fourth quarter and total
year revenues, net income and funds from operations (FFO).
Total revenues increased 26% to $25.2 million for the fourth quarter as compared
to $20.0 million for the same quarter in 2002. Total revenues for the year ended
December 31, 2003 increased 27% to $91.2 million compared to $71.6 million for
the same period in 2002.
Net income available to common shareholders for the quarter increased 25% to
$9.1 million as compared to $7.3 million in the same quarter last year. Net
income on a diluted per share basis increased 10% to $0.46 per share from $0.42
per share in the same quarter last year. Net income available to common
shareholders for the year ended December 31, 2003 increased 15% to $32.1 million
as compared to $27.9 million in the same quarter last year. Net income on a
diluted per share basis increased 8% to $1.77 per share from $1.64 per share for
the same period last year.
FFO increased 26% to $14.2 million from $11.3 million for the same quarter last
year. On a fully diluted basis, FFO per share increased 10% to $0.68 per share
from $0.62 per share for the same quarter last year. FFO for the year ended
December 31, 2003 increased 19% to $50.0 million from $42.1 million for the same
period last year. On a fully diluted basis, FFO per share increased 10% to $2.62
per share from $2.37 per share for the same quarter last year.
Commenting on today's news, David Brain, Chief Executive Officer said, "Our
fourth quarter and year-end results reflect the substantial progress we have
achieved in Company growth and development. We continue to see significant
investment opportunities that we expect will support double-digit growth in
revenues and earnings."
The Company is issuing 2004 FFO guidance in the range of $3.00 to $3.10 per
diluted share which would represent an increase of approximately 14%-18%
compared to 2003 FFO of $2.62 per share. The Company expects to complete
property acquisitions of approximately $260 million during 2004. Factors that
may affect achievement of the high or low end of the range include the timing
and amount of property acquisitions, the timing and amounts of issuance of
equity securities and changes in the interest rate environment.
ENTERTAINMENT PROPERTIES TRUST
Unaudited Financial Data
(in thousands except per share data)
Three months ended Twelve months ended
December 31, December 31,
2003 2002 2003 2002
------------ ------------ ------------- -------------
Rental revenue $25,157 $20,028 $89,965 $71,610
Other income - - 1,195 -
------------ ------------ ------------- -------------
Total Income 25,157 20,028 91,160 71,610
Property operating expense 300 30 698 201
General and administrative expense, excluding amortization
of non-vested shares below 924 615 3,859 2,293
Interest expense, net 8,207 6,580 30,570 24,475
Depreciation and amortization 4,729 3,606 16,359 12,862
Amortization of non-vested shares 231 500 926 1,048
------------ ------------ ------------- -------------
Income before gain on sale of real estate, income from joint 10,766 8,697 38,748 30,731
venture, and minority interest
Gain on sale of real estate - - - 202
Equity in income from joint venture 102 321 401 1,421
Minority interest (430) (375) (1,555) (1,195)
------------ ------------ ------------- -------------
Net income $10,438 $8,643 $37,594 $31,159
Preferred dividend requirements (1,366) (1,366) (5,463) (3,225)
------------ ------------ ------------- -------------
Net income available to common shareholders $9,072 $7,277 $32,131 $27,934
============ ============ ============= =============
Basic net income per common share $0.46 $0.42 $1.81 $1.65
Diluted net income per common share $0.46 $0.42 $1.77 $1.64
ENTERTAINMENT PROPERTIES TRUST
Reconciliation of Net Income Available to Common Shareholders to Funds From Operations (A)
(in thousands except per share data)
Three months ended Twelve months ended
December 31, December 31,
FUNDS FROM OPERATIONS: 2003 2002 2003 2002
----------- ------------ ------------- -------------
Net income available to common shareholders $9,072 $7,277 $32,131 $27,934
Less: Gain on sale of real estate - - - (202)
Add: Real estate depreciation 4,678 3,548 16,175 12,700
Add: Share of joint venture depreciation 32 102 135 497
----------- ------------ ------------- -------------
Basic funds from operations $13,782 $10,927 $48,441 $40,929
----------- ------------ ------------- -------------
Add: minority interest in net income 430 375 1,555 1,195
----------- ------------ ------------- -------------
Diluted funds from operations $14,212 $11,302 $49,996 $42,124
=========== ============ ============= =============
FFO per common share: Basic $0.71 $0.64 $2.72 $2.42
Diluted $0.68 $0.62 $2.62 $2.37
Shares used for computation (in thousands): Basic 19,532 17,182 17,780 16,909
Diluted 20,802 18,219 19,051 17,762
(A) The National Association of Real Estate Investment Trusts (NAREIT) developed
FFO as a relative non-GAAP financial measure of performance and liquidity of an
equity REIT in order to recognize that income-producing real estate historically
has not depreciated on the basis determined under GAAP. FFO is a widely used
measure of the operating performance of real estate companies and is provided
here as a supplemental measure to Generally Accepted Accounting Principles
(GAAP) net income available to common shareholders and earnings per share. FFO,
as defined under the revised NAREIT definition and presented by us, is net
income, computed in accordance with GAAP, excluding gains and losses from sales
of depreciable operating properties, plus real estate related depreciation and
amortization, and after adjustments for unconsolidated partnerships, joint
ventures and other affiliates. Adjustments for unconsolidated partnerships,
joint ventures and other affiliates are calculated to reflect FFO on the same
basis. FFO is a non-GAAP financial measure. FFO does not represent cash flows
from operations as defined by GAAP and is not indicative that cash flows are
adequate to fund all cash needs and is not to be considered an alternative to
net income or any other GAAP measure as a measurement of the results of the
Company's operations or the Company's cash flows or liquidity as defined by
GAAP.
ENTERTAINMENT PROPERTIES TRUST
Condensed Consolidated Balance Sheets
(in thousands)
AS OF AS OF
DECEMBER 31, DECEMBER 31,
2003 2002
ASSETS
Rental properties, net $ 870,944 $ 679,937
Land held for development 29,152 12,985
Investment in joint venture 1,336 1,109
Cash and cash equivalents 30,527 10,091
Restricted cash 6,495 6,495
Accounts receivable from joint venture - 8,438
Other assets 27,464 11,332
--------- ---------
Total assets $ 965,918 $ 730,387
========= =========
LIABILITIES AND SHAREHOLDERS' EQUITY
Common dividends payable $ 9,829 $ 8,162
Preferred dividends payable 1,366 1,366
Unearned rent 895 4,036
Other liabilities 2,864 1,653
Long term debt 506,555 346,617
--------- ---------
Total liabilities 521,509 361,834
Minority interest 21,630 15,375
Shareholders' equity 422,779 353,178
--------- ---------
Total liabilities and shareholders' $ 965,918 $ 730,387
========= =========
equity
About Entertainment Properties Trust
Entertainment Properties Trust is the only publicly traded real estate
investment trust (REIT) focused on the acquisition of high-quality real estate
assets leased to leading location-based entertainment operators. Since November
of 1997, EPR has acquired more than $900 million of properties. The Company's
common shares of beneficial interest trade on the New York Stock Exchange under
the ticker symbol EPR. Entertainment Properties Trust Company contact: Jon Weis,
30 Pershing Road, Suite 201, Kansas City, Missouri 64108; 888/EPR-REIT; fax:
816/472-5794. The Company website is at WWW.EPRKC.COM.
Safe Harbor Statement: This press release includes forward-looking statements as
defined in the Private Securities Litigation Reform Act of 1995, identified by
such words as "will be," "intend," "continue," "believe," "may," "expect,"
"hope," "anticipate," or other comparable terms. The Company's actual financial
condition, results of operations and funds from operations may vary materially
from those contemplated by such forward-looking statements. A discussion of the
factors that could cause actual results to differ materially from those
forward-looking statements is contained in the Company's SEC filings, including
the Company's annual report on Form 10-K for the year ended December 31, 2002
and its prospectus filed under Rule 424(b) of the SEC on September 19, 2003.