ElderTrust Announces Third Quarter and Year to Date 2002 Results.Business Editors/Health & Medical Writers KENNETT Kennet or Kennett may refer to: Places
ElderTrust Third Quarter 2002: -- Reported FFO of $0.43 per basic share and $0.41 per diluted share for 3Q'02 -- Reported net income from continuing operations of $0.7 million and net income after results of discontinued operations of $0.7 million for 3Q'02 -- Reported net income of $0.09 per basic and $0.09 per diluted share for 3Q'02 -- Reported revenue of $5.7 million for 3Q'02 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) ), an equity healthcare REIT REIT See: Real Estate Investment Trust REIT See real estate investment trust (REIT). , today reported results for the third quarter ended September September: see month. 30, 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 third quarter ended September 30, 2002, totaled $3.2 million, or $0.43 per basic share and $0.41 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 $5.7 million. In comparison, FFO for the third quarter of 2001 totaled $2.8 million, or $0.39 per basic and $0.37 per diluted share, on revenues of $6.2 million. Net income for the third quarter of 2002 totaled $0.7 million 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 and $0.7 million after 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. , or $0.09 per basic and diluted share. For the comparable quarter of 2001, the net income from continuing operations and net income after discontinued operations was $0.4 million, or $0.06 per basic and diluted share. For the nine months ended September 30, 2002, FFO totaled $9.4 million, or $1.27 per basic share and $1.22 per diluted share, on revenues of $17.1 million. The net income for the nine months ended September 30, 2002 was $1.9 million from continuing operations and net income after discontinued operations was $1.6 million, or $0.22 per basic share and $0.21 per diluted share. For the comparable period in 2001, FFO totaled $7.4 million, or $1.04 per basic share and $0.99 per diluted share, on revenues of $18.9 million. The net loss from continuing operations and after loss on discontinued operations for the nine months ended September 30, 2001 was ($0.2) million or ($0.03) per basic and diluted share. 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 third quarter 2002 was approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $33.1 million and for the nine months ended September 30, 2002 was approximately $34.6 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 third quarter 2002 and the nine months ended September 30, 2002 was approximately 1.88% and 1.88%, respectively. The LIBOR rate applicable to these loans for October October: see month. 2002 is 1.87%. During the second quarter of 2002 the Company recognized an 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. loss of $250,000, or $0.03 per basic and diluted share, on an asset that has been offered for sale, which is included in loss on discontinued operations for the nine months ended September 30, 2002. "We are pleased with our operating results during the third 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 32 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 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. mortgage loans totaling approximately $30 million that mature on December December: see month. 1, 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
(Financial Tables Follow)
ELDERTRUST
Financial Supplement
CONDENSED CONSOLIDATED INCOME STATEMENT
(unaudited)
($000's, except per share data)
For the three months For the nine months
ended ended
September 30, September 30,
-------------------- -------------------
2002 2001 2002 2001
---- ---- ---- ----
Revenues:
Rental revenues $ 4,651 $ 4,666 $13,905 $13,938
Interest, net of
amortization of deferred
loan origination costs 69 592 214 2,124
Interest from unconsolidated
equity investees 931 938 2,768 2,734
Other income 11 45 244 136
------- ------- ------- -------
Total revenues 5,662 6,241 17,131 18,932
------- ------- ------- -------
Expenses:
Property operating
expenses 285 318 998 869
Interest expense,
including amortization of
deferred finance costs 2,080 2,855 6,300 9,213
Bad debt expense - 14 19 42
Depreciation 1,493 1,403 4,455 4,173
General and administrative 590 618 1,832 2,533
Loss on impairment of assets - - - 450
-------- ------- ------- -------
Total expenses 4,448 5,208 13,604 17,280
-------- ------- ------- -------
Net income before equity in
losses of unconsolidated
entities and minority
interest from continuing
operations 1,214 1,033 3,527 1,652
Equity in losses of
unconsolidated entities, net (514) (583) (1,580) (1,823)
Minority interest (29) (26) (95) -
-------- ------- ------- -------
Net income (loss) from
continuing operations 671 424 1,852 (171)
Income (loss) on discontinued
operations after minority
interest (1) 14 (6) (215) (23)
Net income (loss) $ 685 $ 418 $ 1,637 $ (194)
======== ======= ======= =======
Basic weighted average
number of common shares
outstanding 7,435 7,165 7,378 7,134
======== ======= ======= =======
Diluted weighted average
number of common shares
outstanding 7,741 7,529 7,701 7,134
======== ======= ======= =======
Basic income (loss) per share:
Income (loss) from
continuing operations $ 0.09 $ 0.06 $ 0.25 $ (0.03)
Income (loss) from
discontinued operations - - $ (0.03) -
Net income (loss) $ 0.09 $ 0.06 $ 0.22 $ (0.03)
Diluted income (loss) per
share:
Income (loss) from
continuing operations $ 0.09 $ 0.06 $ 0.24 $ (0.03)
Income (loss) from
discontinued operations - - $ (0.03) -
Net income (loss) $ 0.09 $ 0.06 $ 0.21 $ (0.03)
Funds from operations $ 3,199 $ 2,821 $ 9,378 $ 7,405
Basic per share funds
from operations $ 0.43 $ 0.39 $ 1.27 $ 1.04
Diluted per share funds
from operations $ 0.41 $ 0.37 $ 1.22 $ 0.99
(1) Includes an impairment loss of $250,000 on a medical office
building held for sale in the second quarter of 2002.
ELDERTRUST
Financial Supplement
SELECTED BALANCE SHEET DATA
(unaudited)
($000's)
September 30, December 31,
2002 2001
-----------------------------------
Balance Sheet Data
-------------------------------
Investments in real estate, net $286,668 $166,660
Properties held for sale, net 991 0
-------- --------
Total real estate assets $287,659 $166,660
Investments in and advances
to unconsolidated
entities, net 3,005 24,033
Working capital (1) (30,569) (49,558)
Total assets 308,714 205,555
Total debt 213,656 114,889
Shareholders' equity 83,871 80,998
(1) Working capital is reduced by borrowings outstanding under the
Wachovia Bank Credit Facility and the former German American
Capital Corp. Bank Credit Facility of approximately $1.5 million
and $7.2 million as of September 30, 2002 and December 31, 2001,
respectively, and $30.0 million, as of September 30, 2002 and
December 31, 2001, relating to three mortgage loans, all of which
mature within one year from the respective balance sheet dates.
Working capital is further reduced by $2.6 million and $14.8
million, respectively, as of September 30, 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 September 30, 2002 and 2001:
Three months ended
September 30,
------------------
2002 2001
--------------------------
($000's)
Funds from Operations: (1)
Net income $ 685 $ 418
Minority interest 29 26
--------------------------
Net income before minority
interest 714 444
Adjustments to derive funds
from operations:
Add:
Real estate depreciation
and amortization:
Consolidated entities 1,492 1,410
Unconsolidated entities 1,122 1,122
Impairment charges on
real estate properties - -
--------------------------
Funds from operations before
allocation to minority
interest 3,328 2,976
Funds from operations
allocable to minority
interest (129) (155)
--------------------------
Funds from operations
attributable to the common
shareholders $3,199 $2,821
--------------------------
Nine months ended
September 30,
------------------
2002 2001
--------------------------
($000's)
Other Data:
Funds from Operations $9,378 $7,405
Cash flow provided by
operating activities 6,833 6,479
Cash flow provided by
(used in) investing activities 1,063 (786)
Cash flow used in financing
activities (5,336) (6,673)
(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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