Exhibit 99.1
LTC Announces Operating Results for the Three and Twelve Months Ended
December 31, 2006
WESTLAKE VILLAGE, Calif.--(BUSINESS WIRE)--Feb. 6, 2007--LTC
Properties, Inc. (NYSE:LTC) released results of operations for the
three and twelve months ended December 31, 2006 and announced that net
income available to common stockholders for the fourth quarter was
$7.7 million or $0.33 per diluted share. For the same period in 2005,
net income available to common stockholders was $6.5 million or $0.28
per diluted share. Revenues for the three months ended December 31,
2006, were $18.4 million versus $18.0 million for the same period last
year.
The Company also announced that for the twelve months ended
December 31, 2006, net income available to common stockholders was
$61.6 million or $2.51 per diluted share. For the same period in 2005,
net income available to common stockholders was $35.4 million or $1.56
per diluted share. Results for the twelve months ended December 31,
2006 included a gain of $32.6 million from the sale of four assisted
living properties with a total of 431 units located in four states and
one 174-bed skilled nursing property and income from discontinued
operations related to these properties of $0.7 million. Results for
the same period in 2005 included income from discontinued operations
of $3.6 million, a loss on sale of $1.5 million and $11.7 million
additional net income from past due rents and interest income, expense
reimbursement, and income from the realization value on a note
receivable net of advisory expenses and bonus accrual. Revenues for
the twelve months ended December 31, 2006, were $73.2 million versus
$72.4 million for the same period last year excluding the one time
effects of the income from the realization value on a note receivable
described above.
The Company has scheduled a conference call for February 7, 2007,
at 10:00 a.m. Pacific time in order to comment on the Company's
performance and operating results for the quarter ended December 31,
2006. The conference call is accessible by dialing 866-831-6272
passcode 92626456. The international number is 617-213-8859. 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
February 7, 2007 through February 21, 2007. Callers can access the
replay by dialing 888-286-8010 or 617-801-6888 and entering conference
ID number 53150315.
At December 31, 2006, LTC had investments in 108 skilled nursing
properties, 94 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
(Unaudited, amounts in thousands, except per share amounts)
Three Months Ended Twelve Months Ended
December 31, December 31,
------------------ -------------------
2006 2005 2006 2005
--------- -------- ---------- --------
Revenues:
Rental income $13,783 $12,311 $52,342 $49,709
Interest income from mortgage
loans and notes receivable 3,509 4,709 15,444 14,500
Interest income from REMIC
Certificates - - - 3,480
Interest and other income 1,060 1,006 5,377 4,719
--------- -------- ---------- --------
Total revenues 18,352 18,026 73,163 72,408
--------- -------- ---------- --------
Expenses:
Interest expense 1,594 1,882 7,028 8,310
Depreciation and amortization 3,504 3,387 13,892 12,738
Legal expenses 6 19 236 194
Operating and other expenses 1,731 2,062 6,696 6,397
--------- -------- ---------- --------
Total expenses 6,835 7,350 27,852 27,639
--------- -------- ---------- --------
Income before non-operating
income and minority interest 11,517 10,676 45,311 44,769
Non-operating income 517 - 517 6,217
Minority interest (86) (92) (343) (349)
--------- -------- ---------- --------
Income from continuing
operations 11,948 10,584 45,485 50,637
Discontinued operations:
Income from discontinued
operations - 921 746 3,576
Gain (loss) on sale of real
estate assets, net - (691) 32,557 (1,504)
--------- -------- ---------- --------
Net income from discontinued
operations - 230 33,303 2,072
--------- -------- ---------- --------
Net income 11,948 10,814 78,788 52,709
Preferred stock dividends (4,241) (4,325) (17,157) (17,343)
--------- -------- ---------- --------
Net income available to common
stockholders $7,707 $6,489 $61,631 $35,366
========= ======== ========== ========
Net Income per Common Share
from Continuing Operations net
of Preferred Stock Dividends:
Basic $0.33 $0.27 $1.21 $1.49
========= ======== ========== ========
Diluted $0.33 $0.27 $1.21 $1.47
========= ======== ========== ========
Net Income per Common Share
from Discontinued Operations:
Basic - $0.01 $1.43 $0.09
========= ======== ========== ========
Diluted - $0.01 $1.41 $0.09
========= ======== ========== ========
Net Income per Common Share
Available to Common
Stockholders:
Basic $0.33 $0.28 $2.64 $1.58
========= ======== ========== ========
Diluted $0.33 $0.28 $2.51 $1.56
========= ======== ========== ========
Basic weighted average shares
outstanding 23,515 23,218 23,366 22,325
========= ======== ========== ========
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
real estate 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 Twelve Months Ended
December 31, December 31,
------------------ ----------------------
2006 2005 2006 2005
--------- -------- ---------- -----------
Net income available to
common stockholders $7,707 $6,489 $61,631 $35,366
Add: Real estate
depreciation 3,504 3,615 13,944 13,698
Add: Non-cash compensation
charges 248 182 1,002 579
Add: IRS settlement - - 950 -
Less (gain)/add loss on sale
of real estate assets - 691 (32,557) 1,504
--------- -------- ---------- -----------
FFO available to common
stockholders $11,459 $10,977 $44,970 $51,147
========= ======== ========== ===========
Less: IRS settlement - - (950) -
Less: Non-cash compensation
charges (248) (182) (1,002) (579)
--------- -------- ---------- -----------
FFO including IRS settlement
and non-cash compensation
charges $11,211 $10,795 $43,018 $50,568
========= ======== ========== ===========
Basic FFO available to
common stockholders per
share $0.49 $0.47 $1.93 $2.29
========= ======== ========== ===========
Diluted FFO available to
common stockholders per
share $0.48 $0.46 $1.88 $2.19 (1)
========= ======== ========== ===========
Basic FFO including IRS
settlement and non-cash
compensation charges per
share $0.48 $0.46 $1.84 $2.27
========= ======== ========== ===========
Diluted FFO including IRS
settlement and non-cash
compensation charges per
share $0.47 $0.45 $1.80 $2.17 (1)
========= ======== ========== ===========
(1) Includes $0.46 of diluted FFO resulting from $11.7 million
additional net income from past due rents and interest income,
expense reimbursement, and income from realization value on a note
receivable net of $2.3 million of advisory expenses and bonus
accrual. Excluding the one time effects of these items, diluted FFO
available to common stockholders per share for the year ended
December 31, 2005 would have been $1.73 and diluted FFO including
non-cash compensation charges per share would have been $1.71
LTC PROPERTIES, INC.
CONSOLIDATED BALANCE SHEETS
(Amounts in thousands, except per share amounts)
December 31, December 31,
2006 2005
------------ ------------
ASSETS
Real Estate Investments:
Buildings and improvements, net of
accumulated depreciation and
amortization: 2006 - $102,091; 2005 -
$88,652 $351,148 $342,664
Land 35,048 32,956
Properties held for sale, net of
accumulated depreciation and
amortization: 2006 - $0; 2005 - $7,119 - 29,332
Mortgage loans receivable, net of
allowance for doubtful accounts: 2006 -
$1,280; 2005 - $1,280 116,992 148,052
------------ ------------
Real estate investments, net 503,188 553,004
Other Assets:
Cash and cash equivalents 29,887 3,569
Debt issue costs, net 548 1,268
Interest receivable 3,170 3,436
Prepaid expenses and other assets 16,771 5,130
Notes receivable 4,264 8,931
Marketable securities 9,939 9,933
------------ ------------
Total Assets $567,767 $585,271
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Bank borrowings $ - $16,000
Mortgage loans payable 48,266 58,891
Bonds payable and capital lease obligations 5,545 5,935
Senior mortgage participation payable - 11,535
Accrued interest 358 524
Accrued expenses and other liabilities 6,223 8,427
Liabilities related to properties held for
sale - 3,852
Distributions payable 3,423 11,890
------------ ------------
Total Liabilities 63,815 117,054
Minority interest 3,518 3,524
Stockholders' equity:
Preferred stock $0.01 par value; 15,000
shares authorized; shares issued and
outstanding: 2006 - 8,834; 2005 - 8,993 209,341 213,317
Common stock: $0.01 par value; 45,000 shares
authorized; shares issued and outstanding:
2006 - 23,569; 2005 - 23,276 236 233
Capital in excess of par value 332,149 331,415
Cumulative net income 442,833 364,045
Other 1,693 (941)
Cumulative distributions (485,818) (443,376)
------------ ------------
Total Stockholders' Equity 500,434 464,693
------------ ------------
Total Liabilities and Stockholders'
Equity $567,767 $585,271
============ ============
CONTACT: LTC Properties, Inc.
Andre C. Dimitriadis, Chairman & CEO
Wendy L. Simpson, President, COO & CFO
805-981-8655