MEDICAL PROPERTIES REPORTS RESULTS
MEDICAL PROPERTIES REPORTS RESULTS ENCINO, Calif., Aug. 5 /PRNewswire/ -- Medical Properties Inc.
(AMEX: MPP) today reported a net loss of $729,000, or $.31 per share, for the second quarter ended June 30, 1992, compared with net income of $396,000, or $.17 per share, for the comparable prior-year period. Revenues were $182,000, primarily from rental income compared with $1,325,000 for the same quarter a year ago, which was primarily from rental income.
For the six months ended June 30, 1992, the net loss totaled $1,674,000, or $.71 per share, on total revenue of $190,000 principally from rental income. For the comparable prior-year period, net income was $824,000, or $.35 per share, on total revenue of $2,655,000 principally from rental income. The substantial decrease in net income and revenue for both periods is primarily due to the company not receiving any rental income from its two La Mirada, Calif., properties. As previously reported, the company has filed a preliminary proxy statement with the Securities and Exchange Commission. Such proxy will be presented to its shareholders at a special meeting to be held on Sept. 25, 1992, for shareholders of record the close of business on Aug. 17, 1992. This proxy is expected to be mailed on or about Aug. 17, 1992. The salient items to be presented to the company's shareholders for approval are to reduce the monthly rent from $72,917 to $60,000 for the company's Valley Community Hospital, and to accept a $4,375,000 ("Nu-Med note") payment from the La Mirada Hospital and adjacent medical office building lessees (subsidiaries of Nu-Med) as consideration for the termination of the two leases. This payment would be in the form of note to be paid plus interest at 10 percent in monthly installments of $92,956 over a 60-month period, which amortizes same in full and is also guaranteed by Nu-Med Inc. As additional consideration, the two lessees would forfeit the lease deposits totalling $364,583. Such contemplated revised agreements also provide for the forgiveness of any rent which would have been due from Valley Community Hospital from Oct. 1, 1991 through March 31, 1992 (monthly rent $72,917) and from the two La Mirada leases from Oct. 1, 1991 until the actual termination date of such leases (monthly rent $364,583). Nu-Med Inc.'s subsidiary, which leases the La Mirada Hospital, has temporarily closed the facility. All of the foregoing is due to the substantial cash losses incurred by the lessees. Nu- Med Inc., the guarantor, has been advancing funds for such operations, but is unable to provide additional funds. Medical Properties is in the process of holding various discussions with independent third parties for the possible sale of the two La Mirada properties. However, no assurances can be made regarding the consummation of a sale. The company's debt service will also require restructuring and no assurances can be given that this can be accomplished. Should the lease termination agreement and the sale of the two La Mirada properties not be consummated, the company would not be able to continue operations and would not be able to pay its debt. Medical Properties is a real estate investment trust engaged in investing in income producing health care related facilities. MEDICAL PROPERTIES INC. Statement of Earnings (Unaudited) Three months ended Six months ended June 30, June 30, 1992 1991 1992 1991 Revenues: Rental income- related parties $180,000 1,312,000 $180,000 2,630,000 Interest income 2,000 13,000 10,000 25,000 Total 182,000 1,325,000 190,000 2,655,000 Expenses: Depreciation and amortization 290,000 308,000 593,000 616,000 Interest 419,000 419,000 837,000 833,000 Advisory fees - related party 0 0 0 63,000 Insurance 49,000 47,000 99,000 93,000 Other 153,000 155,000 335,000 226,000 Total 911,000 929,000 1,864,000 1,831,000 Net income ($729,000) 396,000 ($1,674,000) 824,000 Net income per share ($0.31) 0.17 ($0.71) 0.35 Weighted average shares outstanding 2,357,900 2,358,312 2,357,900 2,358,312 -0- 8/5/92 /CONTACT: William Hartauer, chairman of the board and president of Medical Properties, 818-902-2270; or Melvyn S. Rifkind of Melvyn S. Rifkind Inc., 818-783-8323, for Medical Properties/ (MPP) CO: Medical Properties Inc. ST: California IN: SU: ERN
AL-KJ -- LA023 -- 7190 08/05/92 15:01 EDT
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|Date:||Aug 5, 1992|
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