Exhibit 99.1
LTC Announces Operating Results for
the Three and Twelve Months Ended December 31, 2005
WESTLAKE VILLAGE, Calif.--(BUSINESS WIRE)--Feb. 7, 2006--LTC
Properties, Inc. (NYSE:LTC) released results of operations for the
three and twelve months ended December 31, 2005 and announced that net
income available to common stockholders for the fourth quarter was
$6.5 million or $0.28 per diluted share. For the same period in 2004,
net income available to common stockholders was $4.7 million or $0.23
per diluted share. Results for fourth quarter 2005 included a loss of
$0.7 million from a sale of a skilled nursing property located in New
Mexico and income from discontinued operations of $0.8 million.
Results for fourth quarter 2004 included income from discontinued
operations of $0.8 million. Revenues for the three months ended
December 31, 2005, were $18.2 million versus $15.2 million for the
same period last year.
For the twelve months ended December 31, 2005, net income
available to common stockholders was $35.4 million or $1.56 per
diluted share as compared to $15.0 million or $0.77 per diluted share
for the year ended December 31, 2004. Results for 2005 included a loss
on sale of assets of $1.5 million and income from discontinued
operations of $3.1 million. The $1.5 million loss on sale was related
to two skilled nursing properties, one located in New Mexico and the
other property located in Texas. The New Mexico property was part of a
master lease and the rent from that master lease was not adjusted as a
result of this sale. The Texas property was closed and not generating
revenue to the Company. Included in these results for 2005 is the
effect in the first quarter 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 first quarter and twelve months ended
December 31, 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. Results for 2004 included a gain
on sale of assets of $0.6 million, income from discontinued operations
of $3.1 million, a $0.3 million impairment charge and a charge of $4.0
million, related to LTC's redemption of its 9.5% Series A and 9.0%
Series B Preferred Stock. Excluding the effects of the collection of
the note payoff in 2005 as discussed above and the preferred stock
redemption charge in 2004, net income available to common stockholders
was $1.06 per diluted share and $0.97 per diluted share for 2005 and
2004, respectively. Revenues for the twelve months ended December 31,
2005 were $73.0 million versus $62.7 million for the same period last
year.
The Company has scheduled a conference call for February 7, 2006
at 1:00 PM Pacific Time in order to comment on the Company's
performance and operating results for the quarter ended December 31,
2005. The conference call is accessible by dialing 866-202-3048,
passcode 40260459. 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 2:00 PM Pacific time on February 7, 2006 through
February 14, 2006. Callers can access the replay by dialing
888-286-8010 and entering conference ID number 48550378. Webcast
replays will also be available on our website.
At December 31, 2005, LTC had investments in 126 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)
Three Months Ended Year Ended
December 31, December 31,
----------------- ----------------
2005 2004 2005 2004
-------- -------- -------- -------
Revenues:
Rental income $12,468 $10,672 $50,293 $42,400
Interest income from mortgage
loans and notes receivable 4,709 2,531 14,500 9,138
Interest income from REMIC
Certificates -- 1,109 3,480 7,342
Interest and other income 1,006 869 4,719 3,853
-------- -------- -------- --------
Total revenues 18,183 15,181 72,992 62,733
-------- -------- -------- --------
Expenses:
Interest expense 1,882 2,266 8,310 11,523
Depreciation and amortization 3,409 3,001 12,826 11,915
Legal expenses 19 59 194 193
Impairment charge -- 274 -- 274
Operating and other expenses 2,064 1,102 6,407 5,232
-------- -------- -------- --------
Total expenses 7,374 6,702 27,737 29,137
-------- -------- -------- --------
Income before non-operating income
and minority interest 10,809 8,479 45,255 33,596
Non-operating income -- -- 6,217 --
Minority interest (92) (101) (349) (896)
-------- -------- -------- --------
Income from continuing operations 10,717 8,378 51,123 32,700
Discontinued operations:
Income (loss) from discontinued
operations 788 798 3,090 3,080
(Loss) gain on sale of assets,
net (691) -- (1,504) 608
-------- -------- -------- --------
Net income (loss) from discontinued
operations 97 798 1,586 3,688
-------- -------- -------- --------
Net income 10,814 9,176 52,709 36,388
Preferred stock redemption charge -- -- -- (4,029)
Preferred stock dividends (4,325) (4,436) (17,343) (17,356)
-------- -------- -------- --------
Net income available to common
stockholders $6,489 $4,740 $35,366 $15,003
======== ======== ======== ========
Net Income per Common Share from
Continuing Operations net of
Preferred Stock Dividends:
Basic $0.28 $0.19 $1.51 $0.58
======== ======== ======== ========
Diluted $0.28 $0.19 $1.49 $0.58
======== ======== ======== ========
Net Income per Common Share from
Discontinued Operations:
Basic $-- $0.04 $0.07 $0.19
======== ======== ======== ========
Diluted $-- $0.04 $0.07 $0.19
======== ======== ======== ========
Net Income per Common Share
Available to Common Stockholders:
Basic $0.28 $0.23 $1.58 $0.77
======== ======== ======== ========
Diluted $0.28 $0.23 $1.56 $0.77
======== ======== ======== ========
Basic weighted average shares
outstanding 23,218 20,598 22,325 19,432
======== ======== ======== ========
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
(in thousands, except per share amounts):
Three Months Ended Year Ended
December 31, December 31,
---------------- -----------------
2005 2004 2005 2004
-------- ------- -------- --------
Net income available to common
stockholders $6,489 $4,740 $35,366 $15,003
Add: Real estate depreciation 3,615 3,228 13,698 12,927
Add: Preferred stock redemption
charges -- -- -- 4,029
Add: Impairment charge -- 274 -- 274
Add: Non-cash compensation charges 182 142 579 450
Less (gain)/add loss on sale of
assets, net 691 -- 1,504 (608)
-------- ------- -------- --------
FFO available to common
stockholders $10,977 $8,384 $51,147 $32,075
======== ======= ======== ========
Less: Preferred stock redemption
charge -- -- -- (4,029)
Less: Impairment charge -- (274) -- (274)
Less: Non-cash compensation
charges (182) (142) (579) (450)
-------- ------- -------- --------
FFO including preferred stock
redemption, impairment and non-
cash compensation charges $10,795 $7,968 $50,568 $27,322
======== ======= ======== ========
Basic FFO available to common
stockholders per share $0.47 $0.41 $2.29 $1.65
======== ======= ======== ========
Diluted FFO available to common
stockholders per share $0.46 $0.40 $2.19 $1.57
======== ======= ======== ========
Basic FFO including preferred stock
redemption, impairment and non-
cash compensation charges per
share $0.46 $0.39 $2.27 $1.41
======== ======= ======== ========
Diluted FFO including preferred
stock redemption, impairment and
non-cash compensation charges per
share $0.45 $0.38 $2.17 $1.36
======== ======= ======== ========
LTC PROPERTIES, INC.
CONSOLIDATED BALANCE SHEETS
(Amounts in thousands, except per share amounts)
December December
31, 31,
2005 2004
--------- ---------
ASSETS
Real Estate Investments:
Buildings and improvements, net of accumulated
depreciation and amortization:
2005 - $89,545; 2004 - $77,112 $345,065 $330,451
Land 33,376 25,879
Properties held for sale, net of accumulated
depreciation and
Amortization: 2005 - $6,226,
2004: $6,257 26,511 29,418
Mortgage loans receivable, net of allowance for
doubtful accounts: 2005 and 2004 - $1,280 148,052 90,878
REMIC Certificates -- 44,053
--------- ---------
Real estate investments, net 553,004 520,679
Other Assets:
Cash and cash equivalents 3,569 4,315
Debt issue costs, net 1,268 1,348
Interest receivable 3,436 3,161
Prepaid expenses and other assets 5,130 4,451
Notes receivable 8,931 13,926
Marketable debt securities 9,933 --
--------- ---------
Total Assets $585,271 $547,880
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Bank borrowings $16,000 $--
Mortgage loans payable 58,891 71,286
Bonds payable and capital lease obligations 5,935 10,071
Senior mortgage participation payable 11,535 15,407
Accrued interest 524 621
Accrued expenses and other liabilities 8,427 3,029
Liabilities related to properties held for sale 3,852 3,935
Distributions payable 11,890 3,618
--------- ---------
Total Liabilities 117,054 107,967
Minority interest 3,524 3,706
Stockholders' equity:
Preferred stock $0.01 par value: 15,000 shares
authorized; shares issued and
outstanding: 2005 - 8,993; 2004 - 9,201 213,317 218,532
Common stock: $0.01 par value; 45,000 shares
authorized; shares issued and outstanding:
2005 - 23,276; 2004 - 21,374 233 214
Capital in excess of par value 331,415 292,740
Cumulative net income 364,045 311,336
Other (941) 2,070
Cumulative distributions (443,376) (388,685)
--------- ---------
Total Stockholders' Equity 464,693 436,207
--------- ---------
Total Liabilities and Stockholders' Equity $585,271 $547,880
========= =========
CONTACT: LTC Properties, Inc.
Andre C. Dimitriadis or Wendy L. Simpson, 805-981-8655