Entertainment Properties Reports Record First Quarter Results.KANSAS CITY Kansas City, two adjacent cities of the same name, one (1990 pop. 149,767), seat of Wyandotte co., NE Kansas (inc. 1859), the other (1990 pop. 435,146), Clay, Jackson, and Platte counties, NW Mo. (inc. 1850). , Mo. -- Entertainment Properties Trust (NYSE NYSE See: New York Stock Exchange : EPR EPR Electron Paramagnetic Resonance EPR Extended Producer Responsibility EPR Electronic Patient Record(s) EPR Emergency Preparedness and Response (US DHS) EPR Endpoint Reference EPR Ethylene-Propylene Rubber ) today announced operating results for the first quarter ended March 31, 2006. The Company reported record quarterly revenues, net income and 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 ). Total revenue increased 21% to $45.9 million for the first quarter compared to $37.9 million for the same quarter in 2005. Net income available to common shareholders for the first quarter increased 20% to $15.8 million compared to $13.2 million in the same quarter last year. Net income on a 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. per common share basis increased 17% to $0.61 per share from $0.52 per share in the same quarter last year. Funds from operations (FFO) increased 17% to $23.1 million from $19.7 million for the same quarter last year. FFO per diluted common share increased 16% to $0.89 per share from $0.77 per share for the same quarter last year. Capital Markets During the first quarter of 2006, the Company obtained two non-recourse mortgage loans aggregating approximately $44 million in proceeds. Each of these loans is secured by an individual theatre property. The loans bear interest at 5.84% and mature in 2016. On February 2, 2006, the Company completed an offering of one million common shares at $41.25 per share. Subsequently, the underwriter underwriter n. a company or person which/who underwrites an insurance policy, issue of corporate securities, business, or project. (See: underwrite) UNDERWRITER, insurances. One who signs a policy of insurance, by which he becomes an insurer. exercised its over-allotment option to purchase an additional 150,000 shares, resulting in total proceeds to the Company, net of expenses, of approximately $46 million. On January 31, 2006, the Company amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. and restated its secured revolving variable rate credit facility to increase the size of the facility to $200 million from $150 million and reduce the interest rate charged on the facility from rates ranging from LIBOR LIBOR See: London Interbank Offered Rate LIBOR See London interbank offered rate (LIBOR). plus 175 to 250 basis points to LIBOR plus 130 to 175 basis points. The facility was also converted from a secured to an unsecured Unsecured A loan or equity interest that is given without any guarantee of payment, performance, satisfaction or opportunity for return from the recipient. No property, interest or security is used as collateral in either a guarantee or a pledge. facility. The unsecured revolving variable rate credit facility has a three-year term expiring ex·pire v. ex·pired, ex·pir·ing, ex·pires v.intr. 1. To come to an end; terminate: My membership in the club has expired. 2. in 2009 with a one-year extension available at the Company's option. As a result of this amendment and restatement Restatement A revision in a company's earlier financial statements. Notes: The need for restating financial figures can result from fraud, misrepresentation, or a simple clerical error. , the Company expensed certain unamortized financing costs, totaling approximately $673 thousand, in the first quarter of 2006. Also on February 10, 2006, the Company retired approximately $109 million in maturing mortgage notes, which had a weighted average interest rate of approximately 8.0% over the term of the loans. At the time of retirement, these notes had a weighted average interest rate of 7.4%. The proceeds of the offering and financings completed in 2006 were used to repay the maturing mortgage notes. Portfolio Highlights On March 30, 2006, the Company acquired, through a wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. , two megaplex theatre properties in Garland, Texas Garland is a city in Dallas County, Texas, (USA). It is a northeastern suburb of Dallas and is a major part of the Dallas-Fort Worth Metroplex. As of the 2000 census, the city had a population of 215,768, making it the tenth-most populous city in Texas and the eighty-sixth most , and Columbia, Maryland Columbia is a census-designated place and planned community in Howard County, Maryland, United States. It is a suburb of Baltimore, and, to a lesser degree, Washington, DC. It began with the idea that a city could enhance its residents' quality of life. . The Firewheel 18 and Columbia 14 are both operated by AMC (Advanced Mezzanine Card) See AdvancedTCA. and were acquired for a total cost of approximately $35.0 million. Both theatres are leased under long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. triple-net leases. The Company's theatre development program remains strong. As of March 31, 2006, the Company had six theatre development projects under construction for which it has agreed to either finance the development costs or purchase the theatre upon completion. These theatres are expected to have a total of 95 screens and their development costs are expected to be approximately $88.2 million. During the first quarter of 2006, the Company also invested $15.7 million in mortgage loan financing. An additional $7.7 million ($8.7 million Canadian) was provided for the purpose of developing a thirteen-level entertainment retail center in downtown Toronto Downtown Toronto is the heart of the City of Toronto, Ontario, Canada. It is approximately bounded by Bloor Street (including areas slightly north of Bloor around Yonge Street) to the north, Lake Ontario to the south, Bayview Avenue - Don Valley Parkway to the east, and Bathurst , Ontario, Canada, on terms similar to the original mortgage loan. The Company also provided $8.0 million in mortgage loan financing for Crotched Mountain Crotched Mountain Ski & Ride Area is a small ski area on the border between Francestown and Bennington, southern New Hampshire, USA, unusual because it reopened in the 2003-2004 winter after having been closed for 13 years. Ski Resort located in Bennington, New Hampshire Bennington is a town in Hillsborough County, New Hampshire, United States. The population was 1,401 at the 2000 census. History Situated in an area once called "Society Land," the town was formed from parts of Deering, Francestown, Greenfield and Hancock. . The loan bears an initial annual interest rate of 9.25% and provides for annual interest rate increases based on a formula dependent in part on increases in the Consumer Price Index (CPI (1) (Characters Per Inch) The measurement of the density of characters per inch on tape or paper. A printer's CPI button switches character pitch. (2) (Counts Per I ). For the first three months of 2006, the Company's investments totaled $64.3 million.
ENTERTAINMENT PROPERTIES TRUST
Consolidated Statements of Income
(dollars in thousands except per share data)
(Unaudited)
Three Months Ended
March 31,
2006 2005
----------- -----------
Rental revenue $39,130 $34,150
Tenant reimbursements 3,450 2,979
Other income 1,463 814
Mortgage financing interest 1,824 -
----------- -----------
Total revenue 45,867 37,943
Property operating expense 4,770 3,864
Other operating expense 1,038 647
General and administrative expense, including
share-based compensation of $625 and $483,
respectively 2,481 1,733
Costs associated with loan refinancing 673 -
Interest expense, net 11,239 9,522
Depreciation and amortization 7,497 6,538
----------- -----------
Income before gain on sale of land and
income from joint ventures 18,169 15,639
Gain on sale of land 345 -
Equity in income from joint ventures 184 174
----------- -----------
Net income $18,698 $15,813
Preferred dividend requirements (2,916) (2,606)
----------- -----------
Net income available to common
shareholders $15,782 $13,207
=========== ===========
Net income per common share:
Basic $0.61 $0.53
=========== ===========
Diluted $0.61 $0.52
=========== ===========
Dividends per common share $0.6875 $0.6250
=========== ===========
ENTERTAINMENT PROPERTIES TRUST
Reconciliation of Net Income Available to Common Shareholders to
Funds From Operations (A)
(dollars in thousands except per share data)
Three Months Ended
March 31,
-------------------------
2006 2005
------------ ------------
Net income available to common shareholders $ 15,782 $ 13,207
Add: Real estate depreciation and
amortization 7,295 6,460
Add: Allocated share of joint venture
depreciation 61 59
------------ ------------
FFO available to common shareholders $ 23,138 $ 19,726
============ ============
FFO per common share:
Basic $ 0.90 0.79
Diluted 0.89 0.77
Shares used for computation (in thousands):
Basic 25,690 24,975
Diluted 26,030 25,496
Other financial information:
Straight-lined rental revenue $ 492 $ 512
(A) The National Association of Real Estate Investment Trusts (NAREIT)
developed FFO as a relative non-GAAP financial measure of
performance and liquidity of an equity REIT in order to recognize
that income-producing real estate historically has not depreciated
on the basis determined under GAAP. FFO is a widely used measure
of the operating performance of real estate companies and is
provided here as a supplemental measure to Generally Accepted
Accounting Principles (GAAP) net income available to common
shareholders and earnings per share. FFO, as defined under the
revised NAREIT definition and presented by us, is net income,
computed in accordance with GAAP, excluding gains and losses from
sales of depreciable operating properties, plus real estate
related depreciation and amortization, and after adjustments for
unconsolidated partnerships, joint ventures and other affiliates.
Adjustments for unconsolidated partnerships, joint ventures and
other affiliates are calculated to reflect FFO on the same basis.
FFO is a non-GAAP financial measure. FFO does not represent cash
flows from operations as defined by GAAP and is not indicative
that cash flows are adequate to fund all cash needs and is not to
be considered an alternative to net income or any other GAAP
measure as a measurement of the results of the Company's
operations or the Company's cash flows or liquidity as defined by
GAAP.
ENTERTAINMENT PROPERTIES TRUST
Condensed Consolidated Balance Sheets
(dollars in thousands)
As of As of
March 31, 2006 December 31, 2005
----------------- ------------------
(unaudited)
Assets
Rental properties, net $1,318,783 $1,283,988
Property under development 22,101 19,770
Mortgage note and related accrued
interest receivable 61,157 44,067
Investment in joint ventures 2,268 2,297
Cash and cash equivalents 5,788 6,546
Restricted cash 5,362 13,124
Intangible assets, net 10,159 10,461
Deferred financing costs, net 11,564 10,896
Other assets 28,662 23,016
----------------- ------------------
Total assets $1,465,844 $1,414,165
================= ==================
Liabilities and Shareholders'
Equity
Common dividends payable $18,183 $15,770
Preferred dividends payable 2,916 2,916
Unearned rents 1,110 1,304
Accounts payable and accrued
liabilities 8,167 7,928
Long-term debt 721,015 714,591
----------------- ------------------
Total liabilities 751,391 742,509
Minority interest 5,102 5,235
Shareholders' equity 709,351 666,421
----------------- ------------------
Total liabilities and
shareholders' equity $1,465,844 $1,414,165
================= ==================
About Entertainment Properties Trust Entertainment Properties Trust is a real estate investment trust (REIT REIT See: Real Estate Investment Trust REIT See real estate investment trust (REIT). ) and is the largest owner of entertainment real estate in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. , owning megaplex movie theatre properties, entertainment retail centers and other specialty properties in metropolitan markets in the U.S. and Canada. Since November of 1997, EPR has acquired more than $1.4 billion of properties. The Company's common shares of beneficial interest trade on the New York Stock Exchange New York Stock Exchange (NYSE) World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. under the ticker symbol Ticker Symbol An arrangement of characters (usually letters) representing a particular security listed on an exchange or otherwise traded publicly. When a company issues securities to the public marketplace, it selects an available ticker symbol for its securities which investors EPR. Entertainment Properties Trust Company contact: Jon Weis, 30 Pershing Road, Suite 201, Kansas City, Missouri Kansas City is the largest city in the state of Missouri. It encompasses parts of Jackson, Clay, Cass, and Platte counties and is the anchor city of the Kansas City Metropolitan Area, the second largest in Missouri, which includes counties in both Missouri and Kansas. 64108; 888-EPR-REIT; fax: 816-472-5794. The Company website is at www.eprkc.com. Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. Statement: This press release includes 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. as defined in 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, identified by such words as "will be," "intend," "continue," "believe," "may," "expect," "hope," "anticipate," "goal," "forecast" or other comparable terms. The Company's actual financial condition, results of operations, funds from operations, or business may vary materially from those contemplated by such forward-looking statements and involve various risks and uncertainties. A discussion of the risks and uncertainties that could cause actual results to differ materially from those forward-looking statements is contained in the Company's SEC filings, including the Company's annual report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended December 31, 2005. Investors are cautioned not to place undue reliance on any forward-looking statements. |
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