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Omega Announces First Quarter 2012 Financial Results; Adjusted FFO Of $0.55 Per Share For The First Quarter

CONFERENCE CALL

The Company will be conducting a conference call on Tuesday, May 8, 2012, at 10 a.m. Eastern to review the Company’s 2012 first quarter results and current developments. Analysts and investors interested in participating are invited to call (877) 317-6789 from within the United States or (412) 317-6789 from outside the United States and ask the operator to be connected to the “Omega Healthcare First Quarter 2012 Earnings Call.”

To listen to the conference call via webcast, log on to www.omegahealthcare.com and click the “earnings call” icon on the Company’s home page. Webcast replays of the call will be available on the Company’s website for two weeks following the call.

The Company is a real estate investment trust investing in and providing financing to the long-term care industry. At March 31, 2012, the Company owned or held mortgages on 428 skilled nursing facilities, assisted living facilities and other specialty hospitals with approximately 49,966 licensed beds (47,867 available beds) located in 33 states and operated by 47 third-party healthcare operating companies. In addition, the Company has seven facilities currently held for sale.

This announcement includes forward-looking statements, including without limitation the information under the heading “2012 Adjusted FFO Guidance.” Actual results may differ materially from those reflected in such forward-looking statements as a result of a variety of factors, including, among other things: (i) uncertainties relating to the business operations of the operators of the Company’s properties, including those relating to reimbursement by third-party payors, regulatory matters and occupancy levels; (ii) regulatory and other changes in the healthcare sector; (iii) changes in the financial position of the Company’s operators; (iv) the ability of any of the Company’s operators in bankruptcy to reject unexpired lease obligations, modify the terms of the Company’s mortgages and impede the ability of the Company to collect unpaid rent or interest during the pendency of a bankruptcy proceeding and retain security deposits for the debtor's obligations; (v) the availability and cost of capital; (vi) changes in the Company’s credit ratings and the ratings of its debt securities; (vii) competition in the financing of healthcare facilities; (viii) the Company’s ability to maintain its status as a real estate investment trust; (ix) the Company’s ability to manage, re-lease or sell any owned and operated facilities; (x) the Company’s ability to sell closed or foreclosed assets on a timely basis and on terms that allow the Company to realize the carrying value of these assets; (xi) the effect of economic and market conditions generally, and particularly in the healthcare industry; and (xii) other factors identified in the Company’s filings with the Securities and Exchange Commission. Statements regarding future events and developments and the Company’s future performance, as well as management's expectations, beliefs, plans, estimates or projections relating to the future, are forward-looking statements. The Company undertakes no obligation to update any forward-looking statements contained in this announcement.

 
OMEGA HEALTHCARE INVESTORS, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands)
   
March 31, December 31,
2012   2011
(Unaudited)
ASSETS
Real estate properties
Land and buildings $ 2,529,617 $ 2,537,039
Less accumulated depreciation   (494,936 )     (470,420 )
Real estate properties – net 2,034,681 2,066,619
Mortgage notes receivable – net   239,901       238,675  
2,274,582 2,305,294
Other investments – net   45,966       52,957  
2,320,548 2,358,251
Assets held for sale – net   8,090       2,461  
Total investments 2,328,638 2,360,712
 
Cash and cash equivalents 2,717 351
Restricted cash 34,393 34,112
Accounts receivable – net 106,741 100,664
Other assets   66,314       61,473  
Total assets $ 2,538,803     $ 2,557,312  
 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Revolving line of credit $ 27,000 $ 272,500
Secured borrowings 302,221 303,610
Unsecured borrowings – net 1,200,783 975,290
Accrued expenses and other liabilities   125,916       127,428  
Total liabilities   1,655,920       1,678,828  
 
Stockholders’ equity:
Common stock $.10 par value authorized – 200,000 shares issued and outstanding 104,766 shares as of March 31, 2012 and 103,410 as of December 31, 2011

 

10,477

 

10,341

Common stock – additional paid-in-capital 1,492,147 1,471,381
Cumulative net earnings 659,514 633,430
Cumulative dividends paid   (1,279,255 )     (1,236,668 )
Total stockholders’ equity   882,883       878,484  
Total liabilities and stockholders’ equity $ 2,538,803     $ 2,557,312  
 
 
OMEGA HEALTHCARE INVESTORS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
Unaudited
(in thousands, except per share amounts)
 
Three Months Ended
March 31,
2012   2011
Revenue  
Rental income $ 75,975 $ 66,337
Mortgage interest income 7,336 3,498
Other investment income – net 1,130 641
Miscellaneous   74     -  
Total operating revenues 84,515 70,476
 
Expenses
Depreciation and amortization 27,147 25,218
General and administrative 4,041 3,747
Stock-based compensation expense 1,485 1,479
Acquisition costs 105 45
Impairment on real estate properties 272 24,971
Nursing home expenses of owned and operated assets   -     230  
Total operating expenses 33,050 55,690
 
Income before other income and expense 51,465 14,786
Other income (expense):
Interest income 7 11
Interest expense (22,967 ) (20,000 )
Interest – amortization of deferred financing costs (629 ) (694 )
Interest –refinancing costs   (7,108 )   (16 )
Total other expense (30,697 ) (20,699 )
 
Income before gain (loss) on assets sold 20,768 (5,913 )
Gain on assets sold - net   5,316     -  
Net income 26,084 (5,913 )
Preferred stock dividends - (1,691 )
Preferred stock redemption   -     (3,472 )
Net income (loss) available to common stockholders $ 26,084   $ (11,076 )
 
Income per common share available to common stockholders:
Basic:
Net income (loss) $ 0.25   $ (0.11 )
Diluted:
Net income (loss) $ 0.25   $ (0.11 )
 
Dividends declared and paid per common share $ 0.41   $ 0.37  
 
Weighted-average shares outstanding, basic   103,754     100,074  
Weighted-average shares outstanding, diluted   104,012     100,086  
 
 
OMEGA HEALTHCARE INVESTORS, INC.
FUNDS FROM OPERATIONS
Unaudited
(in thousands, except per share amounts)
 
Three Months Ended
March 31,
2012   2011
 
Net income (loss) available to common stockholders $ 26,084 $ (11,076 )
(Deduct gain)/add back loss from real estate dispositions   (5,316 )    
Sub – total 20,768 (11,076 )
Elimination of non-cash items included in net income:
Depreciation and amortization 27,147 25,218
Add back non-cash provision for impairments on real estate properties   272     24,971  
Funds from operations available to common stockholders $ 48,187   $ 39,113  
 
Weighted-average common shares outstanding, basic 103,754 100,074
Restricted stock and PRSUs 241
Deferred stock   17     12  
Weighted-average common shares outstanding, diluted   104,012     100,086  
 
Funds from operations per share available to common stockholders $ 0.46   $ 0.39  
 
Adjusted funds from operations:
Funds from operations available to common stockholders $ 48,187 $ 39,113
Add back non-cash preferred stock redemption charges 3,472
Add back nursing home expenses 230
Add back interest refinancing expense 7,108 16
Add back acquisition costs 105 45
Add back non-cash stock-based compensation expense   1,485     1,479  
Adjusted funds from operations available to common stockholders $ 56,885   $ 44,355  

This press release includes Funds From Operations, or FFO, which is a non-GAAP financial measure. For purposes of the Securities and Exchange Commission’s Regulation G, a non-GAAP financial measure is a numerical measure of a company’s historical or future financial performance, financial position or cash flows that excludes amounts, or is subject to adjustments that have the effect of excluding amounts, that are included in the most directly comparable financial measure calculated and presented in accordance with GAAP in the statement of operations, balance sheet or statement of cash flows (or equivalent statements) of the company, or includes amounts, or is subject to adjustments that have the effect of including amounts, that are excluded from the most directly comparable financial measure so calculated and presented. As used in this press release, GAAP refers to generally accepted accounting principles in the United States of America. Pursuant to the requirements of Regulation G, the Company has provided reconciliations of the non-GAAP financial measures to the most directly comparable GAAP financial measures.

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