Second Quarter 1999 Highlights
-- Reported FFO of $0.45 per share for 2Q'99, a 4.8% increase over 2Q'98
-- Reported revenue increase of $1.8 million for 2Q'99, a 33% increase
over 2Q'98
-- Authorized 2Q'99 Dividend of $0.365 per share
KENNETT SQUARE, Pa., July 30 /PRNewswire/ -- ElderTrust (NYSE: ETT), an
equity healthcare REIT, today reported results for the second quarter ended
June 30, 1999. ElderTrust began operations on January 30, 1998, upon
completion of its initial public offering. Accordingly, six month 1998
results discussed below have been adjusted to reflect the full six month
equivalent results.
Funds from operations (FFO) for the second quarter ended June 30, 1999,
totaled $3.5 million, or $0.45 per share, on revenues of $7.1 million. In
comparison, FFO for the second quarter of 1998 totaled $3.4 million or $0.43
per share, on revenues of $5.4 million. The 1999 results reflect a 4.8%
increase in FFO over the comparable period in 1998.
Net loss for the second quarter of 1999 totaled $1.8 million, or $0.25
per basic and diluted share. In comparison, net income was $2.0 million, or
$0.27 per share, for the comparable quarter of 1998.
For the six months ended June 30, 1999, FFO totaled $7.1 million, or $0.92
per share, on revenues of $14.2 million. Net loss was $873,000, or $0.12 per
share. For the comparable period in 1998 adjusted FFO totaled $6.4 million,
or $0.81 per share, on adjusted revenues of $10.3 million and adjusted net
income was $784,000, or $0.11 per share.
The second quarter 1999 results of operations include a one-time charge of
$2.8 million, including $2.6 million of canceled indebtedness relating to the
separation agreement with Edward B. Romanov, Jr. The remaining $200,000
represents an estimate of costs associated with the separation that is payable
to third parties.
In addition, the second quarter results also reflect the impact of the
amortization of fees incurred when ElderTrust extended its bank credit
facility in March 1999 to January 1, 2000.
D. Lee McCreary, Jr., Acting President & Chief Executive Officer and Chief
Financial Officer said, "The amortization of these extension fees, which
increased approximately $423,000 over that incurred for the comparable quarter
last year, in addition to an increase in the underlying interest rate on the
bank credit facility beginning June 1, 1999, decreased earnings by more than
$0.05 per share. As we have previously stated, refinancing our bank credit
facility continues to be management's top priority."
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. Since commencing operations in January 1998,
the Company has acquired direct and indirect interests in 31 buildings and has
loaned $52 million in construction and term financing on nine additional
healthcare facilities.
Certain matters discussed within this press release may be deemed to be
forward-looking statements within the meaning of the Private Securities Act 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. Factors that could cause
actual results to differ materially from ElderTrust's expectations include
real estate conditions, the Company's ability to refinance its existing bank
credit facility, 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 because of subsequent events.
For more information on ElderTrust via fax at no charge, please dial
1-800-PRO-INFO and enter ticker symbol ETT, or visit ElderTrust's Web site at
http://www.eldertrust.com .
ELDERTRUST
Financial Supplement
CONDENSED CONSOLIDATED INCOME STATEMENT
(unaudited)
($000's, except per share data)
For the three For the six Period from
months ended months ended January 30
June 30, June 30, to June 30,
1999 1998 1999 1998
Revenues:
Rental revenues $4,599 $3,825 $9,222 $6,244
Interest 2,503 1,319 4,909 2,106
Other income 20 222 39 245
Total revenues 7,122 5,366 14,170 8,595
Expenses:
Property operating
expenses 273 266 572 416
Interest expense 3,221 1,472 6,156 2,250
Depreciation 1,453 1,145 2,893 1,889
General and
administrative 709 371 1,462 750
Separation agreement
expenses 2,800 -- 2,800 --
Start-up expenses -- 28 -- 2,645
Total expenses 8,456 3,282 13,883 7,950
Net income (loss) before
equity in earnings
(losses) of
unconsolidated
entities and
minority interest (1,334) 2,084 287 645
Equity in earnings
(losses) of
unconsolidated
entities (627) 55 (1,219) 51
Minority interest 129 (131) 59 (43)
Net income (loss) ($1,832) $2,008 ($873) $653
Basic and diluted
weighted average
number of common
shares outstanding 7,201 7,393 7,208 7,391
Basic and diluted
net income (loss)
per share ($0.25) $0.27 ($0.12) $0.09
Funds from operations $3,454 $3,363 $7,074 $5,307
Basic and diluted per
share funds from
operations $0.45 $0.43 $0.92 $0.67
Distributions per share $0.365 $0.365 $0.73 $0.608
Adjusted data
(annualized to reflect
a full six months
for 1998):
Revenues $7,122 $5,366 $14,170 $10,314
Net income (loss) ($1,832) $2,008 ($873) $784
Basic and diluted
net income (loss)
per share ($0.25) $0.27 ($0.12) $0.11
Funds from operations $3,454 $3,363 $7,074 $6,368
Basic and diluted
per share funds from
operations $0.45 $0.43 $0.92 $0.81
ELDERTRUST
Financial Supplement
SELECTED BALANCE SHEET DATA
(unaudited)
($000's)
June 30, June 30,
1999 1998
(dollars in thousands)
Balance Sheet Data
Investments in Real Estate, net $174,051 $149,598
Investments in mortgages and loans 52,070 44,801
Total Real Estate Assets 226,121 194,399
Investments in and advances to
unconsolidated entities 33,142 7,457
Working capital (A) (94,732) (40,916)
Total assets 273,094 209,626
Long-term debt (B) 50,134 36,683
Shareholders' equity 109,343 117,101
(A) Working capital is reduced by borrowings outstanding under the Bank
Credit Facility of approximately $99.1 million and $43.3 million as of
June 30, 1999 and 1998, respectively, which mature within one year
from the respective balance sheet dates.
(B) Includes amounts due within the next 12 months on long term debt
excluding the Bank Credit Facility.
ELDERTRUST
Financial Supplement
CONSOLIDATED ENTITIES
June 30, 1999
Funds From Operations and
Bank Credit Facility Information
($000's)
For the three For the six
months ended months ended
June 30, June 30,
1999 1998 1999 1998(A)
Funds From Operations:
Net income (loss) before
minority interests $(1,961) $2,139 $(932) $696
Add:
Real estate related
depreciation and
amortization:
Consolidated entities 1,494 1,196 2,960 1,966
Unconsolidated entities 1,121 -- 2,246 --
Nonrecurring start-up
expenses -- 28 -- 2,645
Nonrecurring separation
agreement expenses 2,800 -- 2,800 --
Funds from Operations $3,454 $3,363 $7,074 $5,307
Average number of shares
and units outstanding 7,715 7,874 7,721 7,873
Funds from operations
per share/unit $0.45 $0.43 $0.92 $0.67
Bank Credit Facility
Supplemental Information:
Interest expense without
cost amortization $1,748 $764
Cost amortization 445 22
Total Bank Credit
Facility interest
expense $2,193 $786
Unamortized costs (B) $975 $144
(A) Represents the period from January 30, 1998 to June 30, 1998.
(B) Unamortized costs as of June 30, 1999 to be amortized by December 31,
1999, prior to maturity of the Bank Credit Facility on January 1,
2000.
Exhibit 1
ELDERTRUST
Financial Supplement
June 30, 1999
GENESIS HEALTH VENTURES, INC.
EBITDAR Coverage Ratio for Six Months Ended
March 31, 1999
($000's)
For the Six Months Ended
March 31, 1999
Total net revenues $943,823
Operating expenses 820,459
EBITDAR(A) 123,364
Lease and interest expense 68,766
EBITDAR coverage ratio 1.79 x
(A) EBITDAR is "Earnings Before Interest, Taxes, Depreciation,
Amortization and Rent." This is a commonly used ratio to measure a
company's ability to meet its debt obligations.
Note: All information derived from Form 10-Q filed by Genesis Health
Ventures, Inc. for the period ended March 31, 1999.
Exhibit 2
ELDERTRUST
Financial Supplement
CONSOLIDATED ENTITIES
June 30, 1999
Portfolio Composition
($000's)
No. % of
Balance Sheet Data Properties Beds/Units (D)Investment (A) Total
Real Property 22 1,999 $181,367 68.0%
Loans Receivable 9 744 52,070 19.5
Unconsolidated
subsidiaries (C) 20 2,603 33,142 12.5
Total Investments 51 5,346 $266,579 100.0%
Beds/ Investment
Property Type (E) Properties Units (D) Investment (B) per Bed
Skilled Nursing
Facilities 8 1,251 $82,012 $66
Assisted Living
Facilities 15 1,273 132,655 104
Independent Living
Facilities 2 219 7,397 34
Medical Office Buildings 6 n/a 16,360 n/a
Real Estate Investments 31 2,743 $238,424
(A) Total investments include real estate properties at cost, before
considering depreciation.
(B) Real Estate Investments include gross real estate investments and
credit enhancements which amounted to $233,437 and $4,987
respectively.
(C) Includes 11 properties securing 1 second mortgage note.
(D) Beds/units in service at time of investment.
(E) Excludes investments in unconsolidated subsidiaries.
Exhibit 4
ELDERTRUST
Financial Supplement
CONSOLIDATED ENTITIES
June 30, 1999
Revenue Composition
($000's)
Three months ended
June 30, 1999
Revenue by Investment Type
Mortgages & Other Loans $2,162 30%
Real Property 4,599 65%
Other 361 5%
Total $7,122 100%
Rental Revenue by Facility Type
Skilled Nursing Facilities $1,860 40%
Independent & Assisted Living Facilities 2,027 44%
Medical Office Buildings 712 16%
Total $4,599 100%
Interest Income by Source
From unrelated parties $1,553 62%
From unconsolidated equity investees 950 38%
Total $2,503 100%
Exhibit 5
ELDERTRUST
Financial Supplement
CONSOLIDATED ENTITIES
June 30, 1999
Committed Investment Balances
($000's)
No. No. Committed Investment
Properties (A) Beds/Units Balance (B) per Bed/Unit
Skilled Nursing
Facilities 8 1,251 $82,684 $66
Assisted Living
Facilities 15 1,273 133,006 104
Independent Living
Facilities 2 219 7,864 36
Medical Office
Buildings 6 n/a 16,360 n/a
Total 31 2,743 239,914
Funded 238,424
Unfunded $1,490
(A) Includes equity and loan interests in real property.
(B) Committed Balance includes real estate investments, credit
enhancements and unfunded commitments for which initial funding had
commenced.
Exhibit 6
ELDERTRUST
Financial Supplement
CONSOLIDATED ENTITIES
June 30, 1999
Operator Concentration
($000's)
Concentration by No. %
Investment Properties Investment (A) Investment
Genesis 17 $128,058 53.7%
Multicare 3 19,650 8.2
Crozer/Genesis 4 42,901 18.0
Other 7 47,815 20.1
Total 31 $238,424 100.0%
Concentration by
Revenue Revenue (B) % Revenue
Genesis $3,511 49.3%
Multicare 522 7.3
Crozer/Genesis 1,034 14.5
Other 2,055 28.9
Total $7,122 100.0%
(A) Real Estate Investments include gross real estate investments
($233,437) and credit enhancements ($4,987).
(B) Revenue is for the three month period ended June 30, 1999.
Note: We suggest the reader refer to the Genesis Health Ventures, Inc.
and Multicare, Inc. filings with the Securities and Exchange
Commission and the Genesis Health Ventures, Inc. investor relations
web site at http://www.ghv.com for information regarding these companies.
Exhibit 7
ELDERTRUST
Financial Supplement
CONSOLIDATED ENTITIES
June 30, 1999
Capitalization Data & Other Credit Support
($000's)
Current Capitalization
Balance % Balance
Long-Term Debt Obligations $50,134 19.4%
Borrowings Under Bank Credit Facility 99,122 38.3%
Shareholders' Equity 109,343 42.3%
Total Book Capitalization $258,599 100.0%
Equity Market Capitalization (A) $73,361
FFO Payout Ratio ($0.365/$0.45) 81% 2nd Qtr.
(A) Calculated on June 30, 1999 at $10.1875 per share price and 7,201,100
shares then outstanding.
Exhibit 8
ELDERTRUST
Financial Supplement
CONSOLIDATED ENTITIES
June 30, 1999
Debt Maturities and Principal Payments
($000's)
Bank Credit
Year Facility Other Debt Total
1999 $909 $909
2000 $99,122 1,329 100,451
2001 1,452 1,452
2002 1,561 1,561
2003 1,682 1,682
Thereafter 43,201 43,201
Total $99,122 $50,134 $149,256
Exhibit 9
ELDERTRUST
Financial Supplement
CONSOLIDATED ENTITIES
June 30, 1999
Selected Facility Data
% % %
Occupancy Medicare Private Pay Coverage
Skilled Nursing
Facilities:
Census 90.6 8.1 27.9
Revenue 19.3 26.1 1.78(A)
Assisted Living
Facilities 87.8 0.0 100.0 0.94
Independent Living
Facilities 98.7 0.0 100.0 1.32
(A) Excludes one property undergoing extensive renovation.
Note: Facility Data is for the three month period ended March 31, 1999,
the second quarter the skilled nursing facilities were subject to
PPS.
Exhibit 10
ELDERTRUST
Financial Supplement
CONSOLIDATED ENTITIES
June 30, 1999
Geographic Concentration
Owned, Consolidated Properties
($000's)
No. Properties Investment % Investment
Investment by State
Pennsylvania 12 $109,493 60.5%
Massachusetts 3 42,324 23.3
New Jersey 3 22,320 12.3
New Hampshire 1 4,074 2.2
Maryland 1 1,347 0.7
Connecticut 2 1,809 1.0
Total 22 $181,367 100.0%
Revenue by State (A)
Pennsylvania 12 $2,997 65.2%
Massachusetts 3 954 20.7
New Jersey 3 472 10.3
New Hampshire 1 86 1.9
Maryland 1 41 0.9
Connecticut 2 49 1.0
Total 22 $4,599 100.0%
(A) Revenue is for the three month period ended June 30, 1999.
Exhibit 11
ELDERTRUST
Financial Supplement
UNCONSOLIDATED ENTITIES
June 30, 1999
Selected Financial Data
(unaudited)
(000's)
ET Sub- ET Sub- ET Sub-Cabot ET
Meridian, LLP Cleveland, LLC Park, LLC Capital Corp.
Selected Operations
Data: (A)
Rental revenue $2,450 $345 $393
Interest income:
Unrelated borrowers 4 12 12 $256
ElderTrust -- -- -- 165
Interest expense:
Unrelated lenders 1,627 187 207 --
ElderTrust 533 81 140 322
Depreciation and
amortization 878 116 140 3
Net income (loss) (584) (27) (82) 62
Selected Balance Sheet
Data: (A)
Current assets 1,995 622 534 190
Real estate properties 108,280 14,359 17,394 --
Notes receivable -- -- -- 12,449
Current liabilities (B) 1,608 1,086 1,002 1
Long-term debt 107,405 13,965 17,067 9,649
Total equity (445) 184 96 3,110
(A) Selected operations and balance sheet data are as of and for the three
month period ended June 30, 1999.
(B) Includes current portion of long-term debt.
Exhibit 12
ELDERTRUST
Financial Supplement
UNCONSOLIDATED ENTITIES
June 30, 1999
Selected Facility Data
Coverage
% % % Before
Occupancy Medicare Private Pay Mgt. Fees
Skilled Nursing
Facilities (A)
Census 91.5 13.7 22.5 --
Revenue -- 28.5 28.2 1.20
Assisted Living
Facility (B) 98.8 0.0 100.0 1.22
Independent
Facility (C) 95.3 0.0 100.0 1.02
(A) ET Sub-Meridian, LLP
(B) ET Sub-Cleveland, LLC
(C) ET Sub-Cabot Park, LLC
Note: Facility Data is for the three month period ended March 31, 1999.
Exhibit 13
ELDERTRUST
Financial Supplement
UNCONSOLIDATED ENTITIES
June 30, 1999
Principal Payments
($000's)
Year Total
1999 $5,038
2000 1,721
2001 1,847
2002 1,985
2003 7,130
Thereafter 96,780
Total $114,501(A)
(A) Excludes payments to related parties.
SOURCE ElderTrust
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Related links:
http://www.eldertrust.com
CONTACT:
D. Lee McCreary, Jr., Acting President &
Chief Executive Officer, Chief Financial Officer of ElderTrust,
610-925-4200
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