ElderTrust Announces First Quarter 2003 Results.Business Editors WILMINGTON Wilmington. 1 City (1990 pop. 71,529), seat of New Castle co., NE Del., on the Delaware River and tributary streams, the Christina and the Brandywine; settled 1638, inc. as a city 1832. , Del.--(BUSINESS WIRE)--April 29, 2003 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 2003: -- Reported net income from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the was $1.6 million and net income after results of discontinued dis·con·tin·ue v. dis·con·tin·ued, dis·con·tin·u·ing, dis·con·tin·ues v.tr. 1. To stop doing or providing (something); end or abandon: operations was $1.5 million for 1Q'03 -- Reported net income of $0.20 per basic and 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 for 1Q'03 on revenues of $8.1 million -- Reported FFO FFO See: Funds from operations of $0.54 per basic share and $0.53 per diluted share for 1Q'03 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, 2003. Net income for the first quarter ended March 31, 2003 totaled $1.6 million and $1.5 million from continuing operations and after the results of discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. , respectively, or $0.21 and $0.20 per basic and diluted share, respectively. For the comparable quarter of 2002, the net income from continuing operations and net income after discontinued operations was $0.6 million, or $0.08 per basic and diluted share. 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) for the first quarter, totaled $4.1 million, or $0.54 per basic share and $0.53 per diluted share, on revenues of $8.1 million. In comparison, FFO for the first quarter of 2002 totaled $3.1 million, or $0.42 per basic and $0.40 per diluted share, on revenues of $5.8 million. The Company recognized income of $0.9 million, or approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $0.12 per basic and diluted share, related to the reversal reversal n. the decision of a court of appeal ruling that the judgment of a lower court was incorrect and is reversed. The result is that the lower court which tried the case is instructed to dismiss the original action, retry the case, or is ordered to change its of a bad debt reserve. This reserve was recorded against a receivable from ET Capital Corp. During the quarter, the Company obtained operational control of ET Capital Corp., and has subsequently consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: its operations. As a result of the consolidation of ET Capital Corp., the Company has realized amounts previously deemed to be uncollectible Adj. 1. uncollectible - not capable of being collected; "a bad (or uncollectible) debt" bad invalid - having no cogency or legal force; "invalid reasoning"; "an invalid driver's license" , resulting in the recognition of this additional income during the quarter through the reversal of previously recorded bad debt expense. In addition the Company noted that the $14.9 million mortgage loan secured by the Harston Harston is a village to the south of Cambridge, England. Harston House Harston House is an historic private house in Harston. It was formerly known as Harston Hall. Hall and Pennsburg properties had been extended to June June: see month. 10, 2003. Negotiations are ongoing with respect to the ultimate resolution of this loan. 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. . The Company currently owns or has interests in 31 properties. 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 Health Ventures, Inc., the Company's principal tenant, continues to make lease payments to the Company, the Company's ability to extend mortgage loans totaling approximately $14.9 million that mature on June 10, 2003, 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. ElderTrust will host a conference call at 2:00 pm (Eastern Time) on April 30, 2003 to discuss the results of this year's first quarter. To listen to the call please dial 1-877-591-1121 and reference the "ElderTrust First Quarter Earnings Call" hosted by D. Lee McCreary McCreary can refer to a number of things: People
To access the replay please dial 1-800-642-1687 and enter ID number 9880013. Additionally, a copy of this press release is available on the investor relations Investor relations The process by which the corporation communicates with its investors. section of the Company's website at www.eldertrust.com. (Financial Tables Follow)
ELDERTRUST
Financial Supplement
CONDENSED CONSOLIDATED INCOME STATEMENT
(unaudited)
($000's, except per share data)
For the three
months ended
March 31,
----------------
2003(1) 2002
-------- -------
Revenues:
Rental revenues $8,039 $4,636
Interest, net of amortization of deferred loan
origination costs 65 75
Interest from unconsolidated equity investees - 914
Other income - 210
-------- -------
Total revenues 8,104 5,835
-------- -------
Expenses:
Property operating expenses 294 428
Interest expense, including amortization of
deferred finance costs 3,623 2,120
Bad debt expense (recapture) (894) 19
Depreciation and amortization 2,612 1,491
General and administrative 824 616
Loss on impairment of assets - -
-------- -------
Total expenses 6,459 4,674
-------- -------
Net income before equity in losses of unconsolidated
entities and minority interest from continuing
operations 1,645 1,161
Equity in losses of unconsolidated entities, net - (520)
Minority interest (54) (36)
-------- -------
Net income from continuing operations(2) 1,591 605
Income (loss) on discontinued operations after
minority interest (71) 5
-------- -------
Net income $1,520 $610
======== =======
Basic weighted average number of
common shares outstanding 7,597 7,337
======== =======
Diluted weighted average number of
common shares outstanding 7,649 7,680
======== =======
Basic income (loss) per share:
Income from continuing operations $0.21 $0.08
Loss from discontinued operations ($0.01) -
Net income $0.20 $0.08
Diluted income (loss) per share:
Income from continuing operations $0.21 $0.08
Loss from discontinued operations ($0.01) -
Net income $0.20 $0.08
Funds from operations $4,066 $3,099
Basic per share funds from operations $0.54 $0.42
Diluted per share funds from operations $0.53 $0.40
(1) The 2003 data includes the consolidation of three entities that
hold leasehold and purchase option rights to seven skilled nursing
facilities and that own one assisted living facility and one
independent living facility. The Company previously accounted for its
investment in these properties under the equity method until September
30, 2002. As a result of the consolidation of these entities, the
Company's total assets, debt, investments in unconsolidated entities,
rental revenue, interest, depreciation expense and equity in losses of
unconsolidated entities commencing in the fourth quarter of 2002
changed significantly.
(2) Includes recapture of bad debt expense of $894,000 related to ET
Capital Corp. This expense was recorded in 2000.
ELDERTRUST
Financial Supplement
SELECTED BALANCE SHEET DATA
(unaudited)
($000's)
March 31,December 31,
2003 2002
---------------------
Balance Sheet Data
-------------------------------------------------
Investments in real estate, net $279,553 $282,057
Properties held for sale, net - 926
---------------------
Total real estate assets 279,553 282,983
Investments in and advances to unconsolidated
entities, net - 3,187
Working capital(1) (14,734) (14,340)
Total assets 298,249 306,775
Total debt 202,591 212,807
Shareholders' equity 83,194 82,744
(1) The Company's working capital deficit of $14.7 million and $14.3
million at March 31, 2003 and December 31, 2002, respectively,
includes the outstanding mortgage balance on the Harston Hall and
Pennsburg properties of $14.5 million and $14.9 million, respectively,
which has been extended to June 10, 2003. The working capital deficit
at December 31, 2002 includes an additional $2.0 million, the current
portion of the $3.1 million outstanding balance on the Guidance Line
at December 31, 2002. The $3.1 million Guidance Line was paid off on
January 27, 2003.
The following table presents the Company's Funds from Operations
for the quarters ended March 31, 2003 and 2002:
Three months
ended
March 31,
----------------
2003 2002
----------------
($000's)
Funds from Operations:(1)
Net income $1,520 $610
Minority interest 51 36
----------------
Net income before minority interest 1,571 646
Adjustments to derive funds from operations:
Add:
Real estate depreciation and amortization:
Consolidated entities 2,607 1,500
Unconsolidated entities - 1,122
Loss on sale of real estate property 38 -
----------------
Funds from operations before allocation to minority
interest 4,216 3,268
Funds from operations allocable to
minority interest (150) (169)
----------------
Funds from operations attributable to the common
shareholders $4,066 $3,099
----------------
Three months
ended
March 31,
--------------
2003 2002
--------------
($000's)
Other Data:
Funds from Operations $4,066 $3,099
Cash flow provided by operating activities 3,329 1,878
Cash flow provided by (used in) investing activities (207) 736
Cash flow used in financing activities (5,202)(3,117)
(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.
|
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion