Exhibit 99.1
LTC Announces Operating Results for the
Three and Six Months Ended June 30, 2005
MALIBU, Calif.--(BUSINESS WIRE)--Aug. 2, 2005--LTC Properties,
Inc. (NYSE:LTC) released results of operations for the three and six
months ended June 30, 2005 and announced that net income available to
common stockholders for the second quarter was $5.8 million or $0.27
per diluted share. For the same period in 2004, net income available
to common stockholders was $4.4 million or $0.23 per diluted share
which included a loss on sale of assets of $0.3 million or $0.01 per
share. Revenues for the three months ended June 30, 2005, were $17.0
million versus $16.6 million for the same period last year.
For the six months ended June 30, 2005, net income available to
common stockholders was $23.0 million or $1.02 per diluted share. In
the first quarter of 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 the effect of the note payoff is
included in the results for the six months ended June 30, 2005 as
follows: $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. For the same period in 2004, net income available to
common stockholders was $5.4 million or $0.29 per diluted share which
included a gain on sale of assets of $0.7 million, or $0.04 per share,
and a charge of $4.0 million, or $0.21 per share, related to LTC's
redemption of its 9.5% Series A and 9.0% Series B Preferred Stock.
Revenues for the six months ended June 30, 2005 were $39.9 million
versus $33.4 million for the same period last year.
The Company has scheduled a conference call for August 3, 2005 at
9:00 AM Pacific time in order to comment on the Company's performance
and operating results for the quarter ended June 30, 2005. The
conference call is accessible by dialing (888) 396-2386 passcode
78746388. 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 11:00 AM Pacific time on August 3, 2005 through
August 17, 2005. Callers can access the replay by dialing (888)
286-8010 and entering conference ID number 49570119. Webcast replays
will also be available on our website until August 18, 2005.
At June 30, 2005, LTC had investments in 100 skilled nursing
properties, 101 assisted living properties and two schools in 32
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)
(Unaudited)
Three Months Six Months
Ended June 30, Ended June 30,
----------------- -----------------
2005 2004 2005 2004
-------- -------- -------- --------
Revenues:
Rental income $12,237 $11,644 $28,109 $23,096
Interest income from mortgage
loans and notes receivable 3,230 2,334 5,912 4,472
Interest income from REMIC
Certificates 1,219 2,047 2,683 4,438
Interest and other income 310 578 3,163 1,443
-------- -------- -------- --------
Total revenues 16,996 16,603 39,867 33,449
-------- -------- -------- --------
Expenses:
Interest expense 2,223 3,357 4,480 6,670
Depreciation and amortization 3,317 3,210 6,570 6,345
Legal expenses 63 91 136 109
Operating and other expenses 1,203 1,482 3,118 2,733
-------- -------- -------- --------
Total expenses 6,806 8,140 14,304 15,857
-------- -------- -------- --------
Income before non-operating income
and minority interest 10,190 8,463 25,563 17,592
Non-operating income -- -- 6,217 --
Minority interest (86) (259) (172) (542)
-------- -------- -------- --------
Income from continuing operations 10,104 8,204 31,608 17,050
Discontinued operations:
Income from discontinued
operations -- 76 -- 156
Gain (loss) on sale of assets,
net 30 (257) 30 718
-------- -------- -------- --------
Net income (loss) from discontinued
operations 30 (181) 30 874
-------- -------- -------- --------
Net income 10,134 8,023 31,638 17,924
Preferred stock redemption charge -- -- -- (4,029)
Preferred stock dividends (4,341) (3,581) (8,688) (8,527)
-------- -------- -------- --------
Net income available to common
stockholders $5,793 $4,442 $22,950 $5,368
======== ======== ======== ========
Net Income per Common Share from
Continuing Operations net of
Preferred Stock Dividends:
Basic $0.27 $0.24 $1.06 $0.24
======== ======== ======== ========
Diluted $0.27 $0.24 $1.02 $0.24
======== ======== ======== ========
Net Income (Loss) per Common Share
from Discontinued Operations:
Basic $-- ($0.01) $-- $0.05
======== ======== ======== ========
Diluted $-- ($0.01) $-- $0.05
======== ======== ======== ========
Net Income per Common Share
Available to Common Stockholders:
Basic $0.27 $0.23 $1.06 $0.29
======== ======== ======== ========
Diluted $0.27 $0.23 $1.02 $0.29
======== ======== ======== ========
Basic weighted average shares
outstanding 21,614 19,165 21,553 18,576
======== ======== ======== ========
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 Six Months
Ended June 30, Ended June 30,
--------------- -----------------
2005 2004 2005 2004
------- ------- -------- --------
Net income available to common
stockholders $5,793 $4,442 $22,950 $5,368
Add: Real estate depreciation 3,317 3,250 6,570 6,429
Add: Impairment charge -- -- -- --
Less (gain)/add loss on sale of
assets, net (30) 257 (30) (718)
------- ------- -------- --------
FFO available to common stockholders $9,080 $7,949 $29,490 $11,079
======= ======= ======== ========
Add: Preferred stock redemption
charge -- -- -- 4,029
------- ------- -------- --------
FFO excluding preferred stock
redemption charge $9,080 $7,949 $29,490 $15,108
======= ======= ======== ========
Basic FFO available to common
stockholders per share $0.42 $0.42 $1.37 $0.60
======= ======= ======== ========
Diluted FFO available to common
stockholders per share $0.41 $0.39 $1.29 $0.58
======= ======= ======== ========
Basic FFO excluding preferred stock
redemption charge per share $0.42 $0.42 $1.37 $0.81
======= ======= ======== ========
Diluted FFO excluding preferred stock
redemption charge per share $0.41 $0.39 $1.29 $0.76
======= ======= ======== ========
LTC PROPERTIES, INC.
CONSOLIDATED BALANCE SHEETS
(Amounts in thousands, except per share amounts)
June 30, December 31,
2005 2004
----------- ---------
ASSETS (unaudited)
Real Estate Investments:
Buildings and improvements, net of accumulated
depreciation and
amortization: 2005 - $89,756; 2004 -
$83,369 $357,635 $359,347
Land 27,056 26,401
Mortgage loans receivable, net of allowance for
doubtful
accounts: 2005 and 2004 - $1,280 112,189 90,878
REMIC Certificates 30,616 44,053
----------- ---------
Real estate investments, net 527,496 520,679
Other Assets:
Cash and cash equivalents 13,962 4,315
Debt issue costs, net 1,065 1,348
Interest receivable 3,007 3,161
Prepaid expenses and other assets 3,726 4,451
Notes receivable 3,576 13,926
----------- ---------
Total Assets $552,832 $547,880
=========== =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Bank borrowings $-- $--
Mortgage loans payable 70,533 71,286
Bonds payable and capital lease obligations 13,401 13,967
Senior mortgage participation payable 14,962 15,407
Accrued interest 640 649
Accrued expenses and other liabilities 4,008 3,040
Distributions payable 5,905 3,618
----------- ---------
Total Liabilities 109,449 107,967
Minority interest 3,518 3,706
Stockholders' equity:
Preferred stock $0.01 par value: 15,000 shares
authorized;
shares issued and outstanding: 2005 - 9,023;
2004 - 9,201 214,073 218,532
Common stock: $0.01 par value; 45,000 shares
authorized;
shares issued and outstanding: 2005 -
21,649; 2004 - 21,374 216 214
Capital in excess of par value 295,121 292,740
Cumulative net income 342,974 311,336
Other (1,496) 2,070
Cumulative distributions (411,023) (388,685)
----------- ---------
Total Stockholders' Equity 439,865 436,207
----------- ---------
Total Liabilities and Stockholders' Equity $552,832 $547,880
=========== =========
CONTACT: LTC Properties, Inc.
Andre C. Dimitriadis or Wendy L. Simpson, (805) 981-8655