Exhibit 99
ENTERTAINMENT PROPERTIES REPORTS SECOND QUARTER RESULTS
Kansas City, MO, July 26, 2004, -- Entertainment Properties Trust (NYSE:EPR),
today reported financial results for the second quarter ended June 30, 2004.
Total revenues increased 43% to $31.4 million for the quarter as compared to
$21.9 million for the same quarter in 2003. Net income available to common
shareholders increased 38% to $10.4 million as compared to $7.5 million in the
same quarter last year. Net income on a diluted per share basis increased 7% to
$0.46 per share from $0.43 per share in the same quarter last year. Funds from
operations (FFO) on a fully diluted basis increased 42% to $16.7 million from
$11.7 million for the same quarter last year. On a fully diluted basis, FFO per
share increased 11% to $0.71 per share from $0.64 per share for the same quarter
last year.
David Brain, President and Chief Executive Officer stated, "The continued strong
growth of the Company is evident throughout our financial results, but also key
this quarter is the progress made in positioning our balance sheet to provide a
solid foundation for our future growth."
During the second quarter the Company completed the sale of 3,587,500 shares of
common stock in two separate public offerings. On April 20, 2004 the Company
issued 2,587,500 common shares in a public offering priced at $33.00 per share.
On June 22, 2004 the Company issued 1,000,000 common shares in an underwritten
public offering priced at $36.00 per share.
As previously announced, the Company also amended its revolving credit facility
with Fleet Bank, increasing the facility size to $150 million, reducing the
pricing of loans under the facility and extending the term to three years plus a
one-year extension option. In conjunction with the amended credit facility, the
Company terminated its $75 million iStar credit facility. As a result of these
transactions, the Company incurred debt restructuring charges in the second
quarter totaling $1.13 million during the second quarter. The debt restructuring
charge consists of the write-off of deferred loan fees of approximately $729,000
and a prepayment penalty of approximately $404,000.
As previously announced, the Company's Board of Trustees declared a cash
dividend of $0.5625 per common share for the second quarter, which was paid on
July 15, 2004 to common shareholders of record on June 30, 2004. The second
quarter cash dividend represents an annualized dividend amount of $2.25 per
common share as compared to $2.00 for the prior year. The Company also declared
and paid a second quarter cash dividend of $0.59375 on the 9.5% Series A
Preferred Shares.
ENTERTAINMENT PROPERTIES TRUST
Unaudited Financial Data
(in thousands except per share data)
Three months ended Six months ended
June 30, June 30,
2004 2003 2004 2003
------------ ------------ ------------- -------------
Rental revenue $31,426 $21,944 $58,964 $42,402
Other income 23 - 95 587
------------ ------------ ------------- -------------
Total Income 31,449 21,944 59,059 42,989
Property operating expense 484 83 1,125 178
General and administrative expense, excluding amortization
of non-vested shares below 1,486 1,150 2,606 2,006
Costs associated with loan refinancing 1,134 - 1,134 -
Interest expense 10,026 7,477 18,844 14,711
Depreciation and amortization 5,955 3,857 11,016 7,544
Amortization of non-vested shares 340 232 680 463
------------ ------------ ------------- -------------
Income before income from joint ventures and minority interest 12,024 9,145 23,654 18,087
Equity in income from joint ventures 182 97 310 188
Minority interest (490) (375) (919) (750)
------------ ------------ ------------- -------------
Net income $11,716 $8,867 $23,045 $17,525
Preferred dividend requirements (1,366) (1,366) (2,731) (2,731)
------------ ------------ ------------- -------------
Net income available to common shareholders $10,350 $7,501 $20,314 $14,794
============ ============ ============= =============
Basic net income per common share $0.47 $0.44 $0.97 $0.86
Diluted net income per common share $0.46 $0.43 $0.94 $0.85
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 Six months ended
June 30, June 30,
FUNDS FROM OPERATIONS: 2004 2003 2004 2003
------------ ------------ ------------- -------------
Net income available to common shareholders $10,350 $ 7,501 $20,314 $14,794
Add: Real estate depreciation 5,906 3,813 10,919 7,454
Add: Share of joint venture depreciation 62 32 105 64
------------ ------------ ------------- -------------
Basic funds from operations $16,318 $11,346 $31,338 $22,312
------------ ------------ ------------- -------------
Add: minority interest in net income 375 375 750 750
------------ ------------ ------------- -------------
Diluted funds from operations $16,693 $11,721 $32,088 $23,062
============ ============ ============= =============
FFO per common share: Basic $0.73 $0.66 $1.49 $1.30
Diluted $0.71 $0.64 $1.43 $1.26
Shares used for computation (in thousands): Basic 22,211 17,137 20,969 17,106
Diluted 23,551 18,382 22,411 18,332
Other financial information:
Straight-lined rental revenue $ 600 $ - $ 969 $ -
(A) Funds from operations (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 earning per share. FFO is defined as net income
(computed in accordance with GAAP), excluding gains and losses from sales of
depreciable operating properties, plus 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 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
JUNE 30, 2004 DECEMBER 31, 2003
------------- -----------------
(unaudited)
ASSETS
Rental properties, net $1,050,596 $ 887,143
Property under development 37,315 12,953
Investment in joint ventures 2,608 1,336
Cash and cash equivalents 23,688 29,284
Restricted cash 13,258 7,738
Intangibles, net 10,349 693
Other assets 34,004 26,771
---------- ----------
Total assets $1,171,818 $ 965,918
========== ==========
LIABILITIES AND SHAREHOLDERS' EQUITY
Common dividends payable $ 13,535 $ 9,829
Preferred dividends payable 1,366 1,366
Unearned rents 2,600 895
Other liabilities 7,253 2,864
Long term debt 562,499 506,555
---------- ----------
Total liabilities 587,253 521,509
Minority interest 21,590 21,630
Shareholders' equity 562,975 422,779
---------- ----------
Total liabilities and shareholders' equity $1,171,818 $ 965,918
========== ==========
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 $1 billion 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 W. 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, 2003
and its prospectus filed under Rule 424(b) of the SEC on June 22, 2004.