Exhibit 99.1
LTC Announces Operating Results for
the Three and Nine Months Ended September 30, 2005
WESTLAKE VILLAGE, Calif.--(BUSINESS WIRE)--Nov. 1, 2005--LTC
Properties, Inc. (NYSE:LTC) released results of operations for the
three and nine months ended September 30, 2005 and announced that net
income available to common stockholders for the third quarter was $5.9
million or $0.26 per diluted share. For the same period in 2004, net
income available to common stockholders was $4.9 million or $0.24 per
diluted share. Results for 2005 and 2004 included a loss on sale of
assets of $0.8 million and $0.1 million, respectively. The loss on
sale of $0.8 million was related to a closed skilled nursing property
located in Texas that the Company sold to a third party who wanted to
use the property to house victims of hurricane Katrina. As part of the
Company's hurricane relief efforts, the Company sold the property for
$1,000 and in addition, donated $50,000 in cash to the American Red
Cross hurricane Katrina relief fund. As a result of the sale, the
Company recognized a loss on sale of $0.8 million during the third
quarter of 2005. Revenues for the three months ended September 30,
2005, were $18.2 million versus $17.1 million for the same period last
year.
For the nine months ended September 30, 2005, net income available
to common stockholders was $28.9 million or $1.28 per diluted share
which included a loss on sale of assets of $0.8 million. Included in
these results is the effect of the receipt of $22.3 million in cash
related to the payoff of a note receivable which included past due
rental and interest income that had previously not been recorded by
the Company. The Company stated that the effect of the note payoff is
included in the results for the nine months ended September 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 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 $10.3 million or $0.53 per diluted share which
included a gain on sale of assets of $0.6 million, or $0.03 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 nine months ended September 30, 2005 were $58.0
million versus $50.6 million for the same period last year.
The Company also announced that on October 31, 2005, its Board of
Directors, in recognition of her contributions to the Company, named
Wendy Simpson President and Chief Operating Officer. Ms. Simpson will
also continue as the Company's Chief Financial Officer.
The Company has scheduled a conference call for November 1, 2005
at 9:00 AM Pacific time in order to comment on the Company's
performance and operating results for the quarter ended September 30,
2005. The conference call is accessible by dialing 866-770-7129,
passcode 33149030. 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 November 1, 2005 through
November 15, 2005. Callers can access the replay by dialing
888-286-8010 and entering conference ID number 50002387. Webcast
replays will also be available on our website.
At September 30, 2005, LTC had investments in 128 skilled nursing
properties, 101 assisted living properties and two schools in 33
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
Ended Nine months Ended
September 30, September 30,
----------------- -----------------
2005 2004 2005 2004
-------- -------- -------- --------
Revenues:
Rental income $12,952 $11,672 $41,034 $34,767
Interest income from mortgage
loans and notes receivable 3,879 2,135 9,791 6,607
Interest income from REMIC
Certificates 797 1,795 3,480 6,233
Interest and other income 550 1,541 3,713 2,984
-------- -------- -------- --------
Total revenues 18,178 17,143 58,018 50,591
-------- -------- -------- --------
Expenses:
Interest expense 2,202 2,845 6,682 9,515
Depreciation and amortization 3,506 3,233 10,054 9,557
Legal expenses 39 25 175 134
Operating and other expenses 1,235 1,430 4,342 4,130
-------- -------- -------- --------
Total expenses 6,982 7,533 21,253 23,336
-------- -------- -------- --------
Income before non-operating income
and minority interest 11,196 9,610 36,765 27,255
Non-operating income -- -- 6,217 --
Minority interest (85) (253) (257) (795)
-------- -------- -------- --------
Income from continuing operations 11,111 9,357 42,725 26,460
Discontinued operations:
(Loss) income from discontinued
operations (11) 41 (17) 144
(Loss) gain on sale of assets,
net (843) (110) (813) 608
-------- -------- -------- --------
Net (loss) income from discontinued
operations (854) (69) (830) 752
-------- -------- -------- --------
Net income 10,257 9,288 41,895 27,212
Preferred stock redemption charge -- -- -- (4,029)
Preferred stock dividends (4,330) (4,393) (13,018) (12,920)
-------- -------- -------- --------
Net income available to common
stockholders $5,927 $4,895 $28,877 $10,263
======== ======== ======== ========
Net Income per Common Share from
Continuing Operations net of
Preferred Stock Dividends:
Basic $0.30 $0.25 $1.35 $0.50
======== ======== ======== ========
Diluted $0.29 $0.24 $1.32 $0.50
======== ======== ======== ========
Net (Loss) Income per Common Share
from Discontinued Operations:
Basic ($0.04) $-- ($0.04) $0.04
======== ======== ======== ========
Diluted ($0.04) $-- ($0.04) $0.04
======== ======== ======== ========
Net Income per Common Share
Available to Common Stockholders:
Basic $0.26 $0.25 $1.31 $0.54
======== ======== ======== ========
Diluted $0.26 $0.24 $1.28 $0.53
======== ======== ======== ========
Basic weighted average shares
outstanding 22,951 19,960 22,024 19,041
======== ======== ======== ========
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 Nine months Ended
September 30, September 30,
---------------- -----------------
2005 2004 2005 2004
-------- ------- -------- --------
Net income available to common
stockholders $5,927 $4,895 $28,877 $10,263
Add: Real estate depreciation 3,513 3,270 10,083 9,699
Add: Impairment charge -- -- -- --
Less (gain)/add loss on sale of
assets, net 843 110 813 (608)
-------- ------- -------- --------
FFO available to common
stockholders $10,283 $8,275 $39,773 $19,354
======== ======= ======== ========
Add: Preferred stock redemption
charge -- -- -- 4,029
-------- ------- -------- --------
FFO excluding preferred stock
redemption charge $10,283 $8,275 $39,773 $23,383
======== ======= ======== ========
Basic FFO available to common
stockholders per share $0.45 $0.42 $1.81 $1.02
======== ======= ======== ========
Diluted FFO available to common
stockholders per share $0.44 $0.39 $1.72 $0.97
======== ======= ======== ========
Basic FFO excluding preferred stock
redemption charge per share $0.45 $0.42 $1.81 $1.23
======== ======= ======== ========
Diluted FFO excluding preferred
stock redemption charge per share $0.44 $0.39 $1.72 $1.15
======== ======= ======== ========
LTC PROPERTIES, INC.
CONSOLIDATED BALANCE SHEETS
(Amounts in thousands, except per share amounts)
September 30, December 31,
2005 2004
------------- ------------
ASSETS (unaudited)
Real Estate Investments:
Buildings and improvements, net of
accumulated depreciation and
amortization: 2005 - $92,328;
2004 - $82,571 $374,574 $358,573
Land 33,528 26,301
Properties held for sale, net -- 874
Mortgage loans receivable, net of
allowance for doubtful
accounts: 2005 and 2004 - $1,280 152,460 90,878
REMIC Certificates -- 44,053
------------- ------------
Real estate investments, net 560,562 520,679
Other Assets:
Cash and cash equivalents 3,941 4,315
Debt issue costs, net 932 1,348
Interest receivable 3,356 3,161
Prepaid expenses and other assets 4,695 4,451
Notes receivable 5,177 13,926
------------- ------------
Total Assets $578,663 $547,880
============= ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Bank borrowings $4,700 $--
Mortgage loans payable 59,274 71,286
Bonds payable and capital lease obligations 13,299 13,967
Senior mortgage participation payable 11,757 15,407
Accrued interest 609 649
Accrued expenses and other liabilities 5,093 3,029
Liabilities related to properties held for
sale -- 11
Distributions payable 6,063 3,618
------------- ------------
Total Liabilities 100,795 107,967
Minority interest 3,518 3,706
Stockholders' equity:
Preferred stock $0.01 par value: 15,000
shares authorized; shares issued and
outstanding: 2005 - 9,001; 2004 - 9,201 213,534 218,532
Common stock: $0.01 par value; 45,000 shares
authorized; shares issued and outstanding:
2005 - 23,187; 2004 - 21,374 232 214
Capital in excess of par value 328,211 292,740
Cumulative net income 353,231 311,336
Other 2,146 2,070
Cumulative distributions (423,004) (388,685)
------------- ------------
Total Stockholders' Equity 474,350 436,207
------------- ------------
Total Liabilities and Stockholders'
Equity $578,663 $547,880
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CONTACT: LTC Properties, Inc.
Andre C. Dimitriadis or Wendy L. Simpson, 805-981-8655