Exhibit 99.1
Announces Operating Results for the Three and Six Months Ended June 30, 2007
WESTLAKE VILLAGE, Calif.--(BUSINESS WIRE)--Aug. 7, 2007--LTC
Properties, Inc. (NYSE:LTC) released results of operations for the
three and six months ended June 30, 2007 and announced that net income
available to common stockholders for the second quarter of 2007 was
$8.6 million or $0.36 per diluted share. For the same period in 2006,
net income available to common stockholders was $7.7 million or $0.33
per diluted share, which included income from discontinued operations
of $0.1 million. Revenues for the three months ended June 30, 2007
were $19.8 million compared to $18.6 million for the same period last
year.
For the six months ended June 30, 2007, net income available to
common stockholders was $16.8 million or $0.71 per diluted share. For
the same period in 2006, net income available to common stockholders
was $47.1 million or $1.88 per diluted share, which included a gain of
$31.9 million from the sale of four assisted living properties and
discontinued operations related to properties sold of $0.7 million.
Net income from continuing operations was $25.1 million or $0.70 per
diluted share during the six months ended June 30, 2007 as compared to
$23.1 million or $0.62 per diluted share during the same period last
year. Revenues for the six months ended June 30, 2007, were $38.5
million versus $36.7 million for the same period last year.
The Company announced that it had invested $1.4 million in the
second quarter of 2007 under agreements to expand and renovate 12
properties operated by seven different operators. The total commitment
under these agreements is $8.7 million, of which $7.7 million had been
invested as of June 30, 2007. These investments are at an average
yield of approximately 10%.
The Company has scheduled a conference call on Tuesday, August 7,
2007, beginning at 10:00 a.m. Pacific time, in order to comment on the
Company's performance and operating results for the quarter ended June
30, 2007. The conference call is accessible by dialing 866-271-0675
passcode 24142826. The international number is 617-213-8892. 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
August 7, 2007 through August 22, 2007. Callers can access the replay
by dialing 888-286-8010 or 617-801-6888 and entering conference ID
number 99443379.
At June 30, 2007, LTC had investments in 109 skilled nursing
properties, 94 assisted living properties and two schools in 30
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 Six Months Ended
June 30, June 30,
------------------ -----------------
2007 2006 2007 2006
--------- -------- -------- --------
Revenues:
Rental income $14,430 $12,777 $28,815 $25,407
Interest income from mortgage
loans and notes receivable 3,785 4,001 7,254 8,322
Interest and other income 1,578 1,868 2,453 2,951
--------- -------- -------- --------
Total revenues 19,793 18,646 38,522 36,680
--------- -------- -------- --------
Expenses:
Interest expense 1,235 1,780 2,483 3,651
Depreciation and amortization 3,575 3,409 7,116 6,872
Legal expenses 116 120 145 170
Operating and other expenses 1,938 1,384 3,527 2,711
--------- -------- -------- --------
Total expenses 6,864 6,693 13,271 13,404
--------- -------- -------- --------
Income before non-operating income
and minority interest
Minority interest 86 86 172 172
--------- -------- -------- --------
Income from continuing operations 12,843 11,867 25,079 23,104
Discontinued operations:
Income from discontinued
operations -- 122 -- 688
Gain (loss) on sale of assets,
net -- -- 149 31,938
--------- -------- -------- --------
Net income from discontinued
operations -- 122 149 32,626
--------- -------- -------- --------
Net income 12,843 11,989 25,228 55,730
Preferred stock dividends (4,234) (4,306) (8,473) (8,615)
--------- -------- -------- --------
Net income available to common
stockholders $8,609 $7,683 $16,755 $47,115
========= ======== ======== ========
Net Income per Common Share from
Continuing Operations net of
Preferred Stock Dividends:
Basic $0.37 $0.32 $0.70 $0.62
========= ======== ======== ========
Diluted $0.36 $0.32 $0.70 $0.62
========= ======== ======== ========
Net Income per Common Share from
Discontinued Operations:
Basic $-- $0.01 $0.01 $1.40
========= ======== ======== ========
Diluted $-- $0.01 $0.01 $1.33
========= ======== ======== ========
Net Income per Common Share
Available to Common Stockholders:
Basic $0.37 $0.33 $0.71 $2.02
========= ======== ======== ========
Diluted $0.36 $0.33 $0.71 $1.88
========= ======== ======== ========
Basic weighted average shares
outstanding 23,529 23,339 23,505 23,314
========= ======== ======== ========
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 Six Months Ended
June 30, June 30,
------------------ -----------------
2007 2006 2007 2006
--------- -------- -------- --------
Net income available to common
stockholders $8,609 $7,683 $16,755 $47,115
Add: Real estate depreciation 3,575 3,431 7,116 6,916
Add: Non-cash compensation charges 635 252 979 504
Less (gain)/add loss on sale of
assets, net -- -- (149) (31,938)
--------- -------- -------- --------
FFO available to common
stockholders $12,819 $11,366 $24,701 $22,597
========= ======== ======== ========
Less: Non-cash compensation
charges (635) (252) (979) (504)
--------- -------- -------- --------
FFO including preferred stock
redemption, impairment and non-
cash compensation charges $12,184 $11,114 $23,722 $22,093
========= ======== ======== ========
Basic FFO available to common
stockholders per share $0.55 $0.49 $1.05 $0.97
========= ======== ======== ========
Diluted FFO available to common
stockholders per share $0.53 $0.48 $1.02 $0.94
========= ======== ======== ========
Basic FFO including non-cash
compensation charges per share $0.52 $0.48 $1.01 $0.95
========= ======== ======== ========
Diluted FFO including non-cash
compensation charges per share $0.50 $0.47 $0.98 $0.93
========= ======== ======== ========
LTC PROPERTIES, INC.
CONSOLIDATED BALANCE SHEETS
(Amounts in thousands, except per share amounts)
June 30, 2007 December 31, 2006
------------- -----------------
ASSETS (unaudited)
Real Estate Investments:
Buildings and improvements, net of
accumulated depreciation and
amortization: 2007 -- $109,043; 2006
-- $102,091 $347,148 $351,148
Land 34,942 35,048
Mortgage loans receivable, net of
allowance for doubtful accounts:
2007 -- $860; 2006 -- $1,280 88,541 116,992
------------- -----------------
Real estate investments, net 470,631 503,188
Other Assets:
Cash and cash equivalents 63,562 29,887
Debt issue costs, net 425 548
Interest receivable 2,627 3,170
Prepaid expenses and other assets 18,175 16,771
Notes receivable 3,492 4,264
Marketable securities 6,462 9,939
------------- -----------------
Total Assets $565,374 $567,767
============= =================
LIABILITIES AND STOCKHOLDERS' EQUITY
Bank borrowings $-- $--
Mortgage loans payable 47,723 48,266
Bonds payable 5,130 5,545
Accrued interest 348 358
Accrued expenses and other liabilities 5,214 6,223
Distributions payable 3,416 3,423
------------- -----------------
Total Liabilities 61,831 63,815
Minority interest 3,518 3,518
Stockholders' equity:
Preferred stock $0.01 par value; 15,000
shares authorized; shares issued and
outstanding: 2007 -- 8,820; 2006 --
8,834 209,012 209,341
Common stock: $0.01 par value; 45,000
shares authorized; shares issued and
outstanding: 2007 -- 23,724; 2006 --
23,569 237 236
Capital in excess of par value 333,617 332,149
Cumulative net income 468,061 442,833
Other 1,127 1,693
Cumulative distributions (512,029) (485,818)
------------- -----------------
Total Stockholders' Equity 500,025 500,434
------------- -----------------
Total Liabilities and
Stockholders' Equity $565,374 $567,767
============= =================
CONTACT: LTC Properties, Inc.
Andre C. Dimitriadis, Chairman
Wendy L. Simpson, CEO & President
805-981-8655