ElderTrust Announces First Quarter 2002 Results.Business Editors KENNETT Kennet or Kennett may refer to: Places
ElderTrust (NYSE NYSE See: New York Stock Exchange :ETT ETT Empresa de Trabajo Temporal (Spain) ETT European Transactions on Telecommunications ETT Exercise Treadmill Test ETT Embedded Training Team ETT Exercise Tolerance Test (cardiology) ): First Quarter 2002 Highlights -- Reported net income of $0.08 per basic and diluted share, for 1Q'02 -- Reported FFO of $0.42 per basic share, $0.40 per diluted share, for 1Q'02 on revenue of $5.9 million -- Bank Credit Facility balance reduced to $4.5 million ElderTrust (NYSE:ETT), an equity healthcare REIT REIT See: Real Estate Investment Trust REIT See real estate investment trust (REIT). , today reported results for the first quarter ended March 31, 2002. Funds from operations Funds From Operations (FFO) Used by real estate and other investment trusts to define the cash flow from trust operations; earnings with depreciation and amortization added back. (FFO FFO See: Funds from operations ) for the first quarter ended March 31, 2002, totaled $3.1 million, or $0.42 per basic and $0.40 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, on revenues of $5.9 million. In comparison, FFO for the first quarter of 2001, totaled $1.9 million, or $0.26 per basic and $0.25 per diluted share, on revenues of $6.4 million. The improvement in FFO resulted primarily from a $1.2 million reduction in interest expense and $752,000 decrease in general and administrative expenses. Net income for the first quarter of 2002 totaled $610,000 or $0.08 per basic and diluted share. In comparison, the Company reported a net loss of ($931,000) or ($0.13) per basic and diluted share, for the comparable quarter of 2001. For the quarter the Company's average balance of one-month LIBOR LIBOR See: London Interbank Offered Rate LIBOR See London interbank offered rate (LIBOR). based floating rate debt was approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $35.5 million. Of this amount, an average balance of $30.0 million is assessed interest at one-month LIBOR plus 3%. The remainder is assessed interest at one-month LIBOR plus 3.25%. Average one-month LIBOR for the quarter was approximately 1.88 %. The LIBOR rate applicable to these loans for April 2002 is 1.94%. "We are very pleased with the results from the first quarter of 2002," said D. Lee McCreary McCreary can refer to a number of things: People
ElderTrust is a real estate investment trust that invests in real estate properties used in the healthcare services industry, principally along the East Coast of the United States The "Eastern Seaboard," or "Atlantic Seaboard" are terms referring to the easternmost coastal states in the United States. They touch the Atlantic Ocean and stretch up to Canada. . Since commencing operations in January January: see month. 1998, the Company has acquired direct and indirect interests in 32 buildings. Certain matters discussed within this press release may be deemed to be forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Although ElderTrust believes the expectations reflected in such forward-looking statements are reasonable assumptions, it can give no assurance that its expectations will be attained at·tain v. at·tained, at·tain·ing, at·tains v.tr. 1. To gain as an objective; achieve: attain a diploma by hard work. 2. . Factors that could cause actual results to differ materially from ElderTrust's expectations include the extent to which Genesis continues to make lease payments to the Company, the Company's ability to further extend or refinance Refinance 1. When a business or person revises their payment schedule for repaying debt. 2. Replacing an older loan with a new loan offering better terms. Notes: When a business refinances they typically extend the maturity date. its Bank Credit Facility when it matures in August 2002, real estate conditions, changes in the economic conditions and other risks detailed from time to time in the Company's SEC reports and filings. The Company assumes no obligation to update or supplement forward-looking statements that become untrue un·true adj. un·tru·er, un·tru·est 1. Contrary to fact; false. 2. Deviating from a standard; not straight, even, level, or exact. 3. Disloyal; unfaithful. because of subsequent events. For more information on ElderTrust visit ElderTrust's website at www.eldertrust.com
(Financial Tables Follow)
ELDERTRUST
Financial Supplement
CONDENSED CONSOLIDATED INCOME STATEMENT
(unaudited)
($000's, except per share data)
Three months ended
March 31,
--------------------
2002 2001
------- -------
Revenues:
Rental revenues $ 4,682 $ 4,686
Interest, net of amortization of
deferred loan origination costs
75 802
Interest from unconsolidated
equity investees 914 865
Other income 228 51
------- -------
Total revenues 5,899 6,404
------- -------
Expenses:
Property operating expenses 444 292
Interest expense, including
amortization of deferred
finance costs 2,143 3,366
Bad debt expense 19 14
Depreciation 1,502 1,380
General and administrative 625 1,377
Loss on impairment of assets 0 450
------- -------
Total expenses 4,733 6,879
------- -------
Net income (loss) before equity
in losses of unconsolidated
entities and minority interest
1,166 (475)
Equity in losses of unconsolidated
entities, net (520) (505)
Minority interest (36) 49
------- -------
Net income (loss) $ 610 ($ 931)
======= =======
Basic weighted average number
of common shares outstanding
7,337 7,119
======= =======
Diluted weighted average number
of common shares outstanding
7,680 7,119
======= =======
Net income (loss) per share -
basic and diluted $ 0.08 ($ 0.13)
======= =======
Funds from operations $ 3,099 $ 1,864
======= =======
Basic per share funds from
operations $ 0.42 $ 0.26
======= =======
Diluted per share funds from
operations $ 0.40 $ 0.25
======= =======
Distributions per share $ 0.00 $ 0.00
======= =======
ELDERTRUST
Financial Supplement
SELECTED BALANCE SHEET DATA
(unaudited)
($000's)
March 31, Dec. 31,
Balance Sheet Data 2002 2001
----------------------------------------------------------------------
(dollars in thousands)
Investments in real estate, net $ 165,275 $ 166,660
Investments in mortgages and
loans, net 0 0
Properties held for sale, net 0 0
--------- ---------
Total Real Estate Assets 165,275 166,660
Investments in and advances to
unconsolidated entities, net
23,482 24,033
Working capital (1) (46,856) (49,558)
Total assets 202,396 205,555
Total debt 111,845 114,889
Shareholders' equity 81,674 80,998
(1) Working capital is reduced by borrowings outstanding under the
Bank Credit Facility of approximately $4.5 million and $7.2
million as of March 31, 2002 and December 31, 2001,
respectively, and $19.5 million, as of March 31, 2002 and
December 31, 2001, relating to two mortgage loans, all of
which mature within one year from the respective balance sheet
dates. Working capital is further reduced by $25.3 million as
of March 31, 2002 and December 31, 2001, due to events of
default being declared under certain mortgages as the Company
has failed to meet technical requirements, including property
information requirements and the tenant filing for bankruptcy.
The following table presents the Company's Funds from Operations
for the quarters ended March 31, 2002 and 2001:
Three months ended
March 31,
------------------------
2002 2001
------------------------
(in thousands)
Funds from Operations:
Net income (loss) $ 610 ($ 931)
Minority interest 36 (49)
------------------------
Net income (loss) before minority interest 646 (980)
Adjustments to derive funds
from operations:
Add:
Real estate depreciation and amortization:
Consolidated entities 1,500 1,489
Unconsolidated entities 1,122 1,122
Impairment charges on real estate properties -- 450
------------------------
Funds from operations before allocation
to minority interest 3,268 1,969
Funds from operations allocable to
minority interest (169) (105)
------------------------
Funds from operations attributable to
the common shareholders $ 3,099 $ 1,864
------------------------
Three months ended
March 31,
------------------------
2002 2001
------------------------
(in thousands)
Other Data:
Funds from Operations (1) $ 3,099 $ 1,864
Cash flow provided by operating
activities 2,032 2,455
Cash flow provided by (used in)
investing activities 582 (547)
Cash flow used in financing
activities (3,117) (1,368)
(1) The White Paper on Funds from Operations approved by the Board
of Governors of NAREIT in October, 1999 defines Funds from
Operations as net income (loss), computed in accordance with
generally accepted accounting principles, excluding gains (or
losses) from sales of property, plus depreciation and
amortization, and after adjustments for unconsolidated
partnerships and joint ventures. Adjustments for
unconsolidated partnerships and joint ventures will be
calculated to reflect funds from operations on the same basis.
The Company believes that Funds from Operations is helpful to
investors as a measure of the performance of an equity REIT
because, along with cash flow from operating activities,
financing activities and investing activities, it provides
investors with an indication of the ability of the Company to
incur and service debt, to make capital expenditures and to
fund other cash needs. The Company computes Funds from
Operations using standards established by NAREIT which may not
be comparable to Funds from Operations reported by other REITs
that do not define the term using the current NAREIT
definition or that interpret the current NAREIT definition
differently than the Company. Funds from Operations does not
represent cash generated from operating activities using
generally accepted accounting principles and should not be
considered as an alternative to net income as an indication of
the Company's financial performance, or to cash flow from
operating activities as a measure of the Company's liquidity,
nor is it indicative of funds available to fund the Company's
cash needs, including its ability to make cash distributions.
Effective January 1, 2000, Funds from Operations includes both
recurring and non-recurring results of operations, except
those results defined as "extraordinary items" under generally
accepted accounting principles and gains and losses from sales
of depreciable operating property.
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