ElderTrust Announces Second Quarter and Year to Date 2001 Results.Business Editors/Health & Medical Writers 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) ) Second Quarter 2001: -- Reported FFO of $0.38 per basic share and $0.36 per diluted share for 2Q'01 -- Reported net income of $0.3 million, or $0.04 per basic and diluted share, for 2Q'01 -- Reported revenue of $6.4 million for 2Q'01 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 second quarter ended June June: see month. 30, 2001. 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 second quarter ended June 30, 2001, totaled $2.7 million, or $0.38 per basic share and $0.36 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 $6.4 million. In comparison, FFO for the second quarter of 2000 totaled ($24.2) million, or ($3.40) per basic and diluted share, on revenues of $6.5 million. Net income for the second quarter of 2001 totaled $0.3 million, or $0.04 per basic and diluted share. In comparison, the net loss was ($26.7) million, or ($3.75) per basic and diluted share, for the comparable quarter of 2000. For the six months ended June 30, 2001, FFO totaled $4.6 million, or $0.64 per basic share and $0.61 per diluted share, on revenues of $12.8 million. The net loss for the six months ended June 30, 2001 was ($0.6) million or ($0.09) per basic and diluted share. For the comparable period in 2000, FFO totaled ($21.3) million, or ($2.99) per basic and diluted share, on revenues of $13.5 million. The net loss for the six months ended June 30, 2000 was ($26.2) million or ($3.68) per basic and diluted share. The results of operations for the second quarter 2000 and six months ended June 30, 2000 included bad debt expenses of $20.3 million, comprised of probable credit losses of $18.1 million on real estate loans receivable, $1.0 million on a note receivable note receivable A debt due from borrowers and evidenced by a written promise of payment. Note receivable, an entry on the asset side of many corporate balance sheets, indicates the dollar amount of loans due to be repaid by borrowers. from a former officer and $1.2 million on notes receivable from ET Capital Corp., an unconsolidated entity in which the Company has a 95% non-voting non-voting adj non-voting shares → azioni fpl senza diritto di voto equity interest. In addition, equity in losses of unconsolidated entities recorded during these periods included a loss of $7.4 million related to the Company's 95% interest in a third party loan payable to ET Capital Corp. which was determined to be fully impaired at June 30, 2000. This compares to $14,000 and $28,000 of bad debt expense recorded during the second quarter 2001 and the six months ended June 30, 2001, respectively. Equity in losses of unconsolidated entities were $592,000 and $1.1 million for the quarter ended June 30, 2001 and the six months ended June 30, 2001, respectively. 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 for the second quarter 2001 was approximately $66.7 million and for the six months ended June 30, 2001 was approximately $67.5 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 second quarter 2001 and the six months ended June 30, 2001 was approximately 4.56% and 5.21%, respectively. The LIBOR rate applicable to these loans for July July: see month. 2001 is 3.875%. In addition, the Company announced that ET Capital Corp. had been named as a third party defendant in a complaint filed against Genesis Health Ventures, Inc., the Company's principal tenant. The complaint was filed by several not-for-profit Not-for-profit An organization established for charitable, humanitarian, or educational purposes that is exempt from some taxes and in which no one in profits or losses. entities, including the AGE Institute of Florida Florida, state, United States Florida (flôr`ĭdə, flŏr`–), state in the extreme SE United States. A long, low peninsula between the Atlantic Ocean (E) and the Gulf of Mexico (W), Florida is bordered by Georgia and ("AGE"), who own 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. that were formerly managed by Genesis. The Company owns a 95% non-voting equity interest in ET Capital Corp. The third party complaints arise from a lawsuit lawsuit: see procedure; tort. filed by Genesis seeking payment from AGE of various management fees allegedly owed Genesis by AGE. In its complaint, AGE asserts, among other things, that acquiring loans from Genesis secured by second mortgage liens on properties owned by the AGE Institute of Florida, ET Capital Corp. joined with Genesis in an effort to defraud To make a Misrepresentation of an existing material fact, knowing it to be false or making it recklessly without regard to whether it is true or false, intending for someone to rely on the misrepresentation and under circumstances in which such person does rely on it to his or AGE. These loans total $7.8 million and were acquired by ET Capital Corp. in 1998. ET Capital Corp. believes that the complaint is without merit and intends to vigorously defend its position. During the second quarter 2001, however, ET Capital Corp. reserved for legal costs anticipated to be incurred by it in connection with this matter, which reduced the income recognized by the Company during the second quarter 2001 relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc its 95% non-voting equity interest in ET Capital Corp. The Company also addressed its transactions with Senior LifeChoice. First, the Company announced that Senior LifeChoice had executed an agreement to sell the facility securing a $9.5 million mortgage loan from the Company. Under the terms of the sale agreement, the proceeds from the sale would be sufficient for Senior LifeChoice to repay the outstanding loan balance plus past due amounts (currently estimated at approximately $10.0 million in the aggregate). The sale agreement requires the transaction to be completed by August 31, 2001. If consummated con·sum·mate tr.v. con·sum·mat·ed, con·sum·mat·ing, con·sum·mates 1. a. To bring to completion or fruition; conclude: consummate a business transaction. b. as planned, all of the proceeds received by the Company from Senior LifeChoice will be applied by the Company to pay down an equivalent amount of its outstanding loan balance under its Bank Credit Facility, which totaled $36.0 million at June 30, 2001. The Company can provide no assurance, however, that this transaction will be completed as currently contemplated. Second, and as has been previously announced, Senior LifeChoice also is the tenant of 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 owned by the Company and is in default under the related lease agreement with the Company. The Company and Senior LifeChoice are continuing in their efforts to negotiate an acceptable resolution of the Senior LifeChoice defaults under the lease agreement. "We are pleased with the improvement in our operating results during the second quarter of 2001, which largely is attributable to reduced bad debt expense and smaller losses recorded on our investment in unconsolidated entities" 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 1998, the Company has acquired direct and indirect interests in 32 buildings and has loans outstanding of $21.7 million in construction and term financing on five additional healthcare facilities. 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 and Multicare continue to make lease and loan 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 Web site at www.eldertrust.com
ELDERTRUST
Financial Supplement
CONDENSED CONSOLIDATED INCOME STATEMENT
(unaudited)
($000's, except per share data)
For the three months For the six months
ended June 30, ended June 30,
-------------------- --------------------
2001 2000 2001 2000
-------- -------- -------- --------
Revenues:
Rental revenues $ 4,668 $ 4,686 $ 9,354 $ 9,366
Interest, net
of amortization
of deferred
loan origination
costs 730 991 1,531 2,310
Interest from
unconsolidated
equity investees 930 764 1,796 1,711
Other income 64 60 115 118
-------- -------- -------- --------
Total revenues 6,392 6,501 12,796 13,505
-------- -------- -------- --------
Expenses:
Property operating
expenses 298 314 590 608
Interest expense,
including
amortization of
deferred finance
costs 3,038 3,500 6,405 6,887
Depreciation 1,412 1,487 2,792 2,941
General and
administrative 555 1,365 1,930 2,012
Bad debt expense 14 20,267 28 20,267
Loss on impairment
of long-lived
assets -- -- 450 --
-------- -------- -------- --------
Total expenses 5,317 26,933 12,195 32,715
-------- -------- -------- --------
Net income (loss)
before equity in
losses of
unconsolidated
entities and
minority interest 1,075 (20,432) 601 (19,210)
Equity in losses
of unconsolidated
entities, net (735) (8,216) (1,240) (8,882)
Minority interest (21) 1,926 27 1,886
-------- -------- -------- --------
Net income (loss) $ 319 ($26,722) ($ 612) ($26,206)
======== ======== ======== ========
Basic weighted
average number
of common
shares
outstanding 7,119 7,119 7,119 7,119
======== ======== ======== ========
Diluted weighted
average number
of common
shares
outstanding 7,537 7,119 7,509 7,119
======== ======== ======== ========
Basic net
income (loss)
per share $ 0.04 ($ 3.75) ($ 0.09) ($ 3.68)
======== ======== ======== ========
Diluted net
income (loss)
per share $ 0.04 ($ 3.75) ($ 0.09) ($ 3.68)
======== ======== ======== ========
Funds from
operations $ 2,720 ($24,210) $ 4,584 ($21,259)
Basic per share
funds from
operations $ 0.38 ($ 3.40) $ 0.64 ($ 2.99)
Diluted per
share funds
from
operations $ 0.36 ($ 3.40) $ 0.61 ($ 2.99)
ELDERTRUST
Financial Supplement
SELECTED BALANCE SHEET DATA
(unaudited)
($000's)
June 30, December 31,
2001 2000
------------------------------
(dollars in thousands)
Balance Sheet Data
-------------------------------
Investments in real estate, net $159,707 $149,804
Investments in mortgages and
loans, net 21,659 41,559
Properties held for sale, net 9,695 11,365
-------- --------
Total real estate assets 191,061 202,728
Investments in and advances to
unconsolidated entities, net 25,281 18,137
Working capital (1) (26,211) (26,572)
Total assets 233,585 237,687
Total debt 144,333 147,667
Shareholders' equity 79,690 80,099
(1) Working capital is reduced by borrowings outstanding under the Bank Credit Facility of approximately $5.4 million and $5.0 million as of June 30, 2001 and December 31, 2000, respectively, which mature within one year from the respective balance sheet. Also, working capital is reduced by $25.5 million and $25.8 million as of June 30, 2001 and December 31, 2000, respectively, due to events of default being declared under certain mortgages as the Company has failed to meet technical requirements including property information requirements The information needed to support a business or other activity. Systems analysts turn information requirements (the what and when) into functional specifications (the how) of an information system. and the tenant filing for bankruptcy. www.eldertrust.com |
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