ElderTrust Announces Fourth Quarter and Year-End Results for 2002.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)--Feb. 18, 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) ): Fourth Quarter and Year-End year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. 2002 Highlights: -- Reported net loss from continuing operations of ($1.1) million or ($0.14) per basic and diluted share and a net loss of ($1.1) million or ($0.15) per basic and diluted share on revenues of $8.2 million for the fourth quarter of 2002. -- Reported net income from continuing operations of $0.8 million or $0.10 per basic and $0.09 per diluted share and net income of $0.5 million or $0.07 per basic and $0.06 per diluted share on revenue of $25.3 million for the year ended December 31, 2002. -- Reported FFO of $0.47 per basic share and $0.45 per diluted share for the fourth quarter of 2002 and FFO of $1.74 per basic share and $1.67 per diluted share for the year ended December 31, 2002. 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 fourth quarter and the year ended December December: see month. 31, 2002. Net loss 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 for the fourth quarter of 2002 totaled ($1.1) million and ($1.1) million after the results from discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. , or ($0.14) 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 from continuing operations and ($0.15) per basic and diluted share from discontinued operations, on revenues of $8.2 million. For the comparable quarter of 2001, the net income from continuing operations and after the results from discontinued operations was $0.7 million, or $0.10 per basic and $0.09 per diluted share on revenues of $6.3 million. Net income from continuing operations for the year ended December 31, 2002 was $0.8 million and net income was $0.5 million after the results from discontinued operations, or $0.10 per basic and $0.09 per diluted share from continuing operations and $0.07 per basic and $0.06 per diluted share from net income, on revenues of $25.3 million. For the comparable period in 2001, net income from continuing operations and net income was $0.5 million or $0.07 per basic and diluted share on revenues of $25.4 million. 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 fourth quarter ended December 31, 2002, totaled $3.5 million, or $0.47 per basic and $0.45 per diluted share. In comparison, FFO for the fourth quarter of 2001, totaled $3.2 million, or $0.43 per basic and $0.41 per diluted share. FFO for the year ended December 31, 2002 totaled $12.9 million, or $1.74 per basic and $1.67 per diluted share. For 2001, FFO totaled $10.6 million, or $1.47 per basic and $1.42 per diluted share. During the fourth quarter of 2002, the Company recorded an asset impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. of $2.1 million on its 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 property, which adversely affected the Company's results from operations for both the fourth quarter and year ended December 31, 2002. The Harston Hall property, along with one other property, secure a $14.9 million non-recourse mortgage loan that matured on December 1, 2002 but has been extended until April 10, 2003. The Company is currently negotiating with the loan servicer  This article or section is in need of attention from an expert on the subject.Please help recruit one or [ improve this article] yourself. See the talk page for details. regarding a restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). of the loan, which could include the disposition Act of disposing; transferring to the care or possession of another. The parting with, alienation of, or giving up of property. The final settlement of a matter and, with reference to decisions announced by a court, a judge's ruling is commonly referred to as disposition, regardless of of the Harston Hall property. Revenues from this property totaled $0.2 million and $0.8 million, respectively, for the quarter and year ended December 31, 2002. The Company's Salisbury Salisbury, town and district, England Salisbury (sôlz`bərē) or New Sarum (sâr`əm), town (1991 pop. 36,890) and district, Wiltshire, S England. Medical Office Building was classified as held for sale in June June: see month. 2002 and is recorded at its fair market value. The Company recorded a net loss from discontinued operations of $46,000 and $262,000, including $65,000 and $315,000 of impairment charges on this property during the quarter and year ended December 31, 2002, respectively. There is a pending sales contract Sales Contract Contract between a seller and buyer for the sale of goods, services, or both. on this property, which requires lender LENDER, contracts. He from whom a thing is borrowed. 2. The contract of loan confers rights, and imposes duties on the lender. 1. The lender has the right to revoke the loan at his mere pleasure; 9 Cowen, R. 687; 8 Johns. Rep. 432; 1 T. R. 480; 2 Campb. Rep. approval. The Company currently expects the sale of the property to close during the first quarter of 2003. For the quarter ended December 31, 2002, the Company had an average balance of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $33.1 million of one-month LIBOR-based floating rate debt. Of this amount, an average balance of $30.0 million is assessed interest at one-month LIBOR LIBOR See: London Interbank Offered Rate LIBOR See London interbank offered rate (LIBOR). plus 3%. The remainder is assessed interest at one-month LIBOR plus 3.25%. The average one-month LIBOR for the quarter ended December 31, 2002 was approximately 1.70%. The LIBOR rate applicable to these loans for January January: see month. 2003 is 1.44%. "We are pleased with our operating results for the year 2002", said D. Lee McCreary McCreary can refer to a number of things: People
The increase in the Company's revenues during the fourth quarter of 2002 compared to the comparable quarter in 2001 is primarily due to the consolidation as of September September: see month. 30, 2002 of the Company's investments in ET Sub-Meridian Limited Partnership, L.L.P., (which holds leasehold An estate, interest, in real property held under a rental agreement by which the owner gives another the right to occupy or use land for a period of time. leasehold n. and option rights to seven skilled nursing facilities skilled nursing facility n. Abbr. SNF An establishment that houses chronically ill, usually elderly patients, and provides long-term nursing care, rehabilitation, and other services. ) and ET Sub-Cabot Park, L.L.C. and ET Sub-Cleveland Circle, L.L.C. (which each own an assisted living as·sist·ed living n. A living arrangement in which people with special needs, especially older people with disabilities, reside in a facility that provides help with everyday tasks such as bathing, dressing, and taking medication. facility). In prior periods, the Company's investments in these entities were recorded as investments in unconsolidated entities. 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 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 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 April 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. For more information on ElderTrust visit ElderTrust's website at www.eldertrust.com
ELDERTRUST
Financial Supplement
CONDENSED CONSOLIDATED INCOME STATEMENT
(unaudited)
($000's, except per share data)
For the three For the year
months ended ended
December 31, December 31,
----------------- -----------------
2002 2001 2002 2001
-------- -------- -------- --------
Revenues:
Rental revenues $8,002 $4,655 $21,906 $18,593
Interest, net of amortization
of deferred loan origination
costs 76 442 290 2,715
Interest from unconsolidated
equity investees 120 1,187 2,888 3,920
Other income 1 53 245 188
-------- -------- -------- --------
Total revenues 8,199 6,337 25,329 25,416
-------- -------- -------- --------
Expenses:
Property operating expenses 292 312 1,289 1,181
Interest expense, including
amortization of deferred
finance costs 3,867 2,421 10,167 11,634
Depreciation and amortization 2,642 1,460 7,117 5,634
General and administrative 621 616 2,452 3,220
Bad debt expense - - - 116
Loss on impairment of long-
lived assets 2,119 - 2,119 450
-------- -------- -------- --------
Total expenses 9,541 4,809 23,144 22,235
-------- -------- -------- --------
Net income (loss) before equity
in earnings of unconsolidated
entities and minority interest
from continuing operations (1,342) 1,528 2,185 3,181
Equity in income (losses) of
unconsolidated entities, net 216 (768) (1,364) (2,590)
Minority interest 41 (41) (53) (42)
-------- -------- -------- --------
Net income (loss) from continuing
operations (1,085) 719 768 549
Loss from discontinued
operations after minority
interest (1) (46) (2) (262) (25)
-------- -------- -------- --------
Net income (loss) (1,131) 717 506 524
======== ======== ======== ========
Basic weighted average number of
common shares outstanding 7,469 7,329 7,401 7,184
-------- -------- -------- --------
Basic net income (loss) per share
Income (loss) from
continuing operations ($0.14) $0.10 $0.10 $0.07
Loss from discontinued
operations (0.01) - (0.03) -
Net income (loss) (0.15) 0.10 0.07 0.07
Diluted weighted average number
of common shares outstanding (2) 7,469 7,670 7,691 7,442
-------- -------- -------- --------
Diluted net income (loss) per
share
Income (loss) from continuing
operations (0.14) $0.09 0.09 $0.07
Loss from discontinued
operations (0.01) - (0.03) -
Net income (loss) (0.15) 0.09 0.06 0.07
(1) Includes an impairment loss of $65,000 and $315,000 on a
medical office building held for sale during the quarter and
year ended December 31, 2002, respectively.
(2) The reported net loss for the quarter ended December 31, 2002
causes the calculation of the fully diluted loss per share to
be anti-dilutive. Therefore the fully diluted average shares
outstanding is the same as the basic weighted average shares
outstanding under generally accepted accounting principles.
Reconcilation of basic weighted average shares outstanding to
diluted weighted average shares outstanding:
For the three For the year
months ended, ended,
December 31, December 31,
------------- -------------
2002 2001 2002 2001
-----------------------------
Basic weighted average common
shares outstanding
7,469 7,329 7,401 7,184
Add:
Common stock equivalents -
stock options
and warrants 248 341 290 258
-----------------------------
Diluted weighted average common
shares outstanding 7,717 7,670 7,691 7,442
=============================
ELDERTRUST
Financial Supplement
SELECTED BALANCE SHEET DATA
(unaudited)
($000's)
December December
31, 31,
2002 2001
--------- ---------
(dollars in
thousands)
Investments in real estate, net $282,057 $166,660
Properties held for sale 926 -
--------- ---------
Total real estate assets 282,983 166,660
Investments in and advances to unconsolidated
entities 3,187 24,033
Working capital (3) (14,340) (49,558)
Total assets 306,775 205,555
Total debt 212,807 114,889
Shareholders' equity (4) 82,744 80,998
(3) Working capital is reduced by the current portion of
borrowings outstanding under the Guidance Line and Bank Credit
Facility of approximately $2.0 million and $7.2 million as of
December, 31 2002 and December 31, 2001, respectively. Also,
working capital is reduced by $14.9 million and $44.8 million
as of December 31, 2002 and December 31, 2001, respectively,
due to events of default being declared under certain
mortgages as the Company had failed to meet technical
requirements, including property information requirements, and
as a result of the Genesis bankruptcy filing.
(4) The increase in shareholders equity is primarily the result of
the consolidation of Meridian, Cabot and Cleveland at
September 30, 2002.
The following table presents the Company's Funds from Operations
for the periods indicated:
For the three For the year
months ended ended
December 31, December 31,
---------------------------------------
2002 2001 2002 2001
---------------------------------------
($000's)
Funds from Operations: (4)
Net income (loss) ($1,131) $717 $506 $524
Minority interest (43) 41 41 41
---------------------------------------
Net income before minority
interest (1,174) 758 547 565
Adjustments to derive funds
from operations:
Add:
Real estate
depreciation and
amortization:
Consolidated
entities 2,629 1,468 7,119 5,660
Unconsolidated
entities - 1,122 3,367 4,488
Impairment charges
on real estate
properties 2,184 - 2,434 450
---------------------------------------
Funds from operations
before allocation to
minority interest 3,639 3,348 13,467 11,163
Funds from operations
allocable to
minority interest (139) (173) (602) (584)
---------------------------------------
Funds from operations
attributable to the
common shareholders $3,500 $3,175 $12,865 $10,579
---------------------------------------
Basic weighted average
number of common shares
outstanding 7,469 7,329 7,401 7,184
Basic per share funds from
operations $0.47 $0.43 $1.74 $1.47
Diluted weighted average
number of common shares
outstanding 7,717 7,670 7,691 7,442
Diluted per share funds
from operations $0.45 $0.41 $1.67 $1.42
The following table presents the Company's cash flows for the
periods indicated:
For the three For the year
months ended ended
December 31, December 31,
---------------- -----------------
2002 2001 2002 2001
------- -------- -------- --------
($000's)
Other Data:
Cash flow provided by operating
activities $3,678 $4,667 $10,594 $11,146
Cash flow provided by investing
activities (667) 21,641 313 20,855
Cash flow used in financing
activities (849) (25,757) (6,185) (32,430)
(4) 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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