This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Omega Healthcare Investors' CEO Discusses Q2 2012 Results - Earnings Call Transcript

I will now turn the call over to Taylor Pickett.

Taylor Pickett

Thanks Michelle. Good morning and thank you for joining Omega’s second quarter 2012 earnings conference call. Adjusted FFO for the second quarter is $0.53 per share, a 13% increase from the second quarter 2011 adjusted FFO of $0.47 per share.

Our performance is consistent with the first quarter adjusted FFO of $0.55 per share when you take into account an additional $1 million in interest expense from our late first quarter bond offering and $2 million additional weighted average shares. In other words, the $0.02 decline in adjusted FFO is caused primarily by capital market transactions. We maintained our quarterly dividend of $0.42 per share. The dividend payout ratio is 80% of adjusted FFO.

We've increased our 2012 adjusted FFO guidance to a revised range of $2.12 to $2.15 per share. This guidance continues to assume $150 million in new investments during 2012.

Through June 30, we've made new investments of $46 million. The acquisition pipeline continues to be active. During the quarter, Fitch ratings initiated coverage of Omega with a BBB- investment grade rating our senior unsecured notes. We now have investment grade ratings from both Fitch and S&P.

With two investment grade ratings, our pricing on our unsecured line of credit drops by 65 basis points. Bob will now review our second quarter financial results.

Bob Stephenson

Thank you, Taylor and good morning. Our reportable FFO on a dilutive basis was $55.8 million or $0.53 per share for the quarter as compared to $42.6 million or $0.42 per diluted share in the second quarter of 2011. Our adjusted FFO was $55.7 million or $0.53 per share for the quarter and excludes a favorable $1.7 million interest refinancing cost adjustment offset by $1.5 million of non-cash stock-based compensation expense and $98,000 of expenses related to the closing of new investments. Further information regarding the calculation of FFO is included in our earnings release and on our website.

2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 17,682.37 -93.75 -0.53%
S&P 500 2,052.75 -15.14 -0.73%
NASDAQ 4,853.4130 -47.4720 -0.97%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs